Underwritten Securitised Bond Issue

Peel Hldgs PLC 15 February 2000 UNDERWRITTEN SECURITISED BOND ISSUE Peel Holdings p.l.c. ('Peel') announced today that it is proceeding with a £610 million multi-tranche securitised bond issue which has been fully underwritten by Deutsche Bank AG and The Royal Bank of Scotland plc at an all-in interest rate of approximately 7%. It is secured against the future rental income of The Trafford Centre. Peel will retain a 100% equity interest in the Centre. Deutsche Bank AG is acting as arranger and Deutsche Bank AG and The Royal Bank of Scotland plc are acting as lead managers and bookrunners. The structure of the issue comprises several tranches of fixed and floating rate medium and long term notes. The net proceeds of the issue will be £195 million after payment of expenses and the repayment of approximately £340 million of existing debt (currently bearing interest at 9.3%). The net proceeds will be used to provide funds for the further development of the Peel Group. This will include continued investment in its airports and other capital and investment projects. In accordance with the authorities given by shareholders, Peel may also continue to buy in shares for cancellation when the Directors believe that it is in the best interests of shareholders to do so. The Trafford Centre comprises 1.36 million sq ft of shops, restaurants and leisure facilities, including a 20 screen multiplex cinema, making it one of the largest retail and leisure schemes in the country. Anchor tenants include Selfridges, Debenhams, BHS, Boots and C&A. Opened in September 1998, the Centre is approximately four miles west of Manchester City Centre adjacent to the M60 motorway. It benefits from one of the largest and most densely populated catchment areas and the highest design specifications of any shopping centre in the UK. The Centre was independently valued on 1 February 2000 at £880 million. Enquiries: Peel Holdings p.l.c. Peter Scott, Managing Director - 0161 629 8200 Deutsche Bank AG Nicole Downer, Vice President Securitisation - 0171 547 4066 The Royal Bank of Scotland plc Tim Petit, Director of Capital Markets - 0171 427 9737