11 February 2010

Rugby Estates Plc

("Rugby Estates", "Group" or the "Company")

Trading Update

Rugby Estates today issues the following trading update in advance of its final results for the year to 31 January 2010, which are expected to be announced in late April 2010.

Since the announcement of Rugby Estates' half year results for the six months ended 31 July 2009 in October last year, and following the sale of two industrial properties from its portfolio, the Company returned a further £6.1 million to shareholders on 22 January 2010, which was equivalent to 45p per ordinary share. This return of cash is consistent with the Company's stated strategy, which is to concentrate on its asset management business and to return cash realised on the disposal of its property portfolio to shareholders. Together with the return of cash made to shareholders on 22 July 2009 of 50p per share, an aggregate of £14.6 million has been returned to shareholders so far.

At 31 July 2009, Rugby Estates held property assets valued at £43 million. Since then, and throughout the remainder of 2009, there has been strong growth in property values with the IPD UK Monthly All Property index indicating that the rise in general property values in the last quarter of 2009 was over 7 per cent. In addition, in December the Company announced the sale of the investment portfolio held by ING Covent Garden Limited Partnership ("CGLP"), one of Rugby Estates' co-investment vehicles, to Legal & General Property for £119.5 million. Against this background, and in the absence of any change in circumstances, the Directors of Rugby Estates expect to be able to report that triple net asset value per share ("NNNAPS") as at 31 January 2010 will be not less than 400p per ordinary share.

NNNAPS as at 31 January 2010 will be calculated on the same basis as that set out in note 10 to the half yearly results for the six months ended 31 July 2009, which were announced on 28 October 2009. Adjustments are made to the net assets shown in the Group Statement of Financial Position ("Balance Sheet") for the following:

1.   the market value of the property portfolio (without making adjustment for any disposal expenses) is substituted for the Balance Sheet value of property inventories;

2.   the co-investments are included in NNNAPS at the Group's share of the estimated underlying net assets of each co-investment vehicle. Underlying net assets for each co-investment vehicle are estimated by taking the most recently published financial information and applying the change in the IPD UK Monthly All Property index to the value of the respective property portfolio valuations for the period to the Group's Balance Sheet date. The amounts which may ultimately be realised from co-investments, particularly quoted investments such as the Group's holdings in O Twelve Estates Ltd and  Rugby Estates Investment Trust Plc, may differ from the Group's share of estimated underlying net assets;

3.   to the extent not already provided in the Balance Sheet, an adjustment is made to reflect the estimated effect of future vestings under employee incentive schemes; and

4.   an adjustment is made for the estimated effect on taxation liabilities or assets if assets and liabilities were realised at the amounts included in NNNAPS.

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