Rugby Estates plc ('Rugby Estates' or the 'Company')

15 July 2009

Update on Portfolio Valuation and Management Fees

The Board of Rugby Estates provides the following update on its directly-owned portfolio and management fees.

A valuation of the Group's directly-owned property portfolio was carried out as at 30 June 2009.The total valuation was £41,449,000, of which one property was valued by the directors at £815,000 and the other properties were valued by CBRE at £40,634,000. In addition, property sales since 31 January 2009 have realised £1,274,000. The value of the portfolio as at 31 January 2009 was £45,957,000.

The overall capital value reduction of 7.2 per cent compares favourably with UK commercial properties generally which reported a decline in value of 10.5 per cent for the same period.

The Company expects to announce its results for the financial half year to 31 July 2009 in October 2009.

O Twelve Estates Limited ('O Twelve') today announced its results for the year ended 31 March 2009. O Twelve reported that it had agreed terms in principle with its Lenders to restructure its borrowing facilities. In order to facilitate this,  Rugby Asset Management Limited ('RAM'), O Twelve's Property Adviser, has agreed in principle that, following completion of the restructuring, it will defer payment of its management fee in excess of £200,000 (plus VAT and disbursements) per quarter until O Twelve's borrowings have been repaid in full, or otherwise with the agreement of the Lenders. RAM's management fee is presently 0.6% per annum of O Twelve's gross property assets, which were £173.6 million as at 31 March 2009.

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