Tuesday 20 August 2002

Railtrack Group has sold Railtrack (Spacia) Limited, which has long term leases over approximately 130 railway arches, to Railtrack PLC, which already owns the majority of the commercial properties managed under the "Spacia" brand, for approximately £17 million in cash. Railtrack Group has retained certain property interests which were previously held through Railtrack (Spacia) Limited.

The Board of Railtrack Group intends that the proceeds of the disposal will be returned to shareholders as part of the solvent voluntary liquidation of Railtrack Group as soon as reasonably practicable after the proposed disposals of Railtrack PLC and the Group’s interests in the Channel Tunnel Rail Link have been completed.

The net book value of the properties which are being sold within Railtrack (Spacia) Limited as at 31 March 2002 was approximately £16.5 million. The net book value of the properties which are being retained by Railtrack Group as at 31 March 2002 was approximately £5.5 million.

Commenting on the disposal, David Harding, Chief Executive of Railtrack Group, said:
"Following the sale of the Group’s interests in the Broadgate Development, the Board is pleased to announce the sale of Railtrack (Spacia) Limited and believes that the Group is on track to be able to return between 245 and 255 pence per share (subject to the qualifications set out in the circular to shareholders dated 27 June 2002)."

Enquiries

Railtrack Group: 020 7544 8436
Sue Clark Director of Corporate Affairs
Helen Gordon Managing Director of Railtrack Developments Limited

ENDS.

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