Statement re: Chapelthorpe

Second Advance Value Realisation Co 11 March 2005 PRESS RELEASE BY SECOND ADVANCE VALUE REALISATION COMPANY LIMITED AND NORTH ATLANTIC VALUE LLP (for the Requisitionists) TO HOLDERS OF ORDINARY SHARES IN CHAPELTHORPE PLC Response to Chapelthorpe's statement of 11 March 2005 The Requisitionists of the Extraordinary General Meeting to be held on 18 March 2005 note the statement issued by the Company earlier today and would like to draw attention to the following key issues: 1. Announcing the conditional sale of the Penistone site, before receiving planning permission is, the Requisitionists believe, motivated by the current Board's desire to be seen to be active. The current Board states that it believes that the selected purchaser is best placed to handle the complexity of the transaction. The Requisitionists question why the current Board is not negotiating the planning permission, especially as the majority of the consideration, up to £6 million, is linked to the scope of the planning permission. IS THIS THE BEST DEAL FOR SHAREHOLDERS? 2. The Board states that it 'believes that we have delivered value since 2002'. This statement, by omission, appears to endorse the Requisitionists' consistent view that the current Board did not deliver value to shareholders in the five years from 1997 to 2002. 3. Perhaps the current Board would now quantify what value it believes it has delivered to/for shareholders since 2002, bearing in mind that: the Company's broker is forecasting a pre tax loss of £7.4 million for the year to 31 March 2005; shareholders' funds on 31 March 2002 were £51.4m and have already been reduced to £39.4m as at 30 September 2004. 4. The Requisitionists consider that shareholders may wish to take particular note that the Chairman has failed in recent exchanges to endorse publicly the record and positions of Mr Leckie and/or Mr Thompson, his two senior executive and highest paid directors, or to express his full confidence in them in being able to restore value for shareholders. The Requisitionists propose that the time for change is NOW and urge shareholders to vote for all the resolutions at the forthcoming Extraordinary General Meeting of the Company. Contact: Robert Legget Progressive Value Management Limited Tel: 020 7566 5552 Anthony Spiro Spiro Financial Tel: 020 8336 6196 This is important and requires the immediate attention of holders of ordinary shares in CHAPELTHORPE PLC. If you are in any doubt as to the action you should take you should immediately consult your usual financial adviser. This information is provided by RNS The company news service from the London Stock Exchange