23 January 2009

                            Panther Securities PLC                             

                     ("Panther", "Company" or "the Group")                     

                                Trading update                                 

Further to the announcement of the Company's interim management statement for
the three month period ended 30 September 2008 issued on 13 November 2008 and
in advance of the announcement of the results for the year ended 31 December
2008, to be released in late April 2009, the Company provides the following
trading update:

  * The Company holds a number of financial instruments, including a 30 year
    interest rate swap on £35,000,000 at 5.06 per cent. Under IFRS it is a
    requirement to revalue financial derivatives at their fair value at each
    period end and as at 31 December 2008 the Company's financial derivatives
    will have a combined redemption liability of approximately £12 million,
    which is significantly higher than their combined market value as at 30
    September 2008 (£4.1 million liability). This large redemption liability
    arises because the market expectation of future interest rates as at 31
    December 2008 was significantly lower than when Panther originally entered
    into the respective financial instruments. Primarily due to the monetary
    value and the 30 year term of the Company's principal interest rate swap,
    the market value of the Company's financial derivatives are very sensitive
    to interest rate changes. In the current difficult financial markets, this
    is demonstrated by the fact that as at 21 January 2009 the redemption
    liability to Panther had fallen to £10 million. The Board continues to
    believe that its interest rate swaps are an effective hedge on the
    substantial proportion of the borrowings of the Group and that it is
    unlikely that the Group will pay to exit this financial instrument.
   
  * The Directors anticipate that the Group's share portfolio will have a full year 
    writedown of £4.7 million (ie a further writedown of £200,000 over the £4.5
    million writedown for the nine months to 30 September 2008). The Group's
    share portfolio had a value of £3.8 million at 31 December 2008 and is
    uncharged.
   
  * The Directors have undertaken a valuation of the property investment
    portfolio as at 31 December 2008. The Directors estimate that the writedown
    as at 31 December 2008 will be approximately £6 million, leaving the
    Group's investment properties at that date with a market value of
    approximately £96 million. The Group also owns approximately £8.9 million
    of stock properties (held at lower of cost and net realisable value) with a
    market value of approximately £12.8 million.
   
The Directors expect that the above investment and property writedowns will
reduce the deferred tax liability by approximately £6.4 million.

  * The Group has now fully drawn down on its £42.5 million loan facility with
    HSBC Bank plc. The Group is in talks with a number of banks regarding
    obtaining additional financing on its uncharged properties. These talks,
    even though they are at an early stage, have been positive. However, the
    Directors anticipate that the terms of any such new loans will be on less
    favourable terms than the current facilities.
   
The Company also confirms as at 31 December 2008, it had £14 million of cash
balances and has £21 million of uncharged properties for future trading and
investing purposes, where it is now seeing very interesting opportunities for
potential investment.

Under IFRS the above writedowns will result in Panther producing a substantial
loss before taxation, although the majority of the above items have no cash
effect. The Directors are also encouraged by the fact that the Group's current
rental income covers interest payments by a multiple of more than three times,
and the Group's banking covenants are unlikely to be breached even if there are
further substantial falls in property values. A fall in value of our property
portfolio by a further 40 per cent. is required before the Group breaches its
principal loan-to-value banking covenant.

For further information:                                                     
                                                                             
Andrew Perloff, Panther Securities plc:                         020 7278 8011
                                                                             
Simon Peters, Panther Securities plc:                           020 7278 8011