Tender Offer

Second Advance Value Realisation Co 17 May 2004 Second Advance Value Realisation Company Limited or the 'Company' 17 May 2004 Tender Offer The board of Second Advance Value Realisation Company Limited announces that it is preparing proposals to return at least £7.5 million to shareholders by way of a tender offer for its ordinary shares. The tender offer, if approved, will provide shareholders with an opportunity to realise part of their holding of ordinary shares at net asset value less the costs of the tender offer, which the board anticipates will be around one per cent. of the tender amount. The tender offer will enable the Company to return at least £7.5 million to shareholders plus any realisation proceeds generated in the period up to the close of the tender offer. Based on the Company's published unaudited net asset value of £21.3 million at 30 April 2004 and cash currently available, shareholders will be able to tender approximately one third of their shareholding. The Company was launched in April 2003 acquiring a portfolio of listed securities with a market value of £45.8 million in exchange for the issue of ordinary shares and redeemable preference shares. As a result of the successful management of the portfolio, the net asset value per ordinary share has risen from 91p, in April 2003 to 213p at 30 April 2004 and the Company has returned a total of £38.4 million to shareholders. The Company's investment objective is to create value and liquidity for its shareholders. Realisation of the portfolio was initially anticipated to take place over a three year period but, in the light of progress made to date, Progressive Value Management Limited (the 'Manager') expects to liquidate the entire portfolio during the course of the next calendar year. Following an initiative from the Manager, the board will also be proposing an adjustment to the management fee arrangements in order to reflect the current portfolio composition and liquidation timetable. The effect of this adjustment will be to reduce total fees payable under the management agreement and to incentivise the Manager to complete the realisation of the portfolio by 30 June 2005. If this objective is met the amount of the management fee saving will be marginal but if this revised timetable is not achieved the saving will be approximately £300,000 plus VAT. The board also plans to propose at the shareholder meeting to seek an authority to repurchase a further 14.99 per cent. of the Company's ordinary shares in issue following completion of the tender offer through market purchases. Further details of the above proposals which will require approval at an extraordinary general meeting will be sent to shareholders shortly. Enquiries: Progressive Value Management Limited 020 7253 9104 Robert Legget Marshall Securities Limited 020 7490 3788 John Webb/Gary Pinkerton This information is provided by RNS The company news service from the London Stock Exchange