RNS Number:9132Q
Honeygrove Group PLC
15 October 2003



                              Honeygrove Group plc

                        ("Honeygrove" or the "Company")

                                Issue of Equity

Honeygrove is pleased to announce that it has agreed conditional terms for the
issue of 30,000,000 new Ordinary Shares at 10p per share to raise #3,000,000,
before expenses (the "Placing"). The shares are being placed with institutional
and professional investors. The 30,000,000 Ordinary Shares to be issued under
the Placing will represent approximately 24.4% of the enlarged issued share
capital of the Company.

As part of the Company's acquisition of Honeygrove Holdings Limited in June
2003, the Company acquired the Swaylands estate, Penshurst, near Tunbridge
Wells, Kent. The Board initially intended to dispose of the whole or a
substantial part of the Swaylands site. However, the Board has subsequently
concluded that, with the addition of a limited amount of further capital, the
Company could develop the entire site itself, or a substantial part thereof,
with the expectation of generating significantly better returns from the site
than would be the case if the whole or a substantial part of the site was sold
to another developer.

The Placing will provide the Company with additional capital and the flexibility
to develop the entire or a substantial part of the Swaylands site itself.

As part of the terms of the Placing the Company has agreed to issue 30,000,000
two year warrants (the "Warrants") to the placees to subscribe for Ordinary
Shares in the Company at a price of 10 pence per Ordinary Share. The Warrants
will not be admitted to AIM or any other market.

To enable the Company to complete the Placing and the issue of Warrants it is
necessary for the Company to obtain shareholders' approval to grant the
Directors authority to allot Ordinary Shares and dis-apply statutory pre-emption
rights. Honeygrove will therefore be writing to shareholders in due course to
give notice of an Extraordinary General Meeting of Honeygrove Group PLC.

Enquiries:

Chris Johnson, Honeygrove Group plc 01732 743 393






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