Financing Update

    2 April 2008

                       HILL STATION PLC (THE "COMPANY")                        

                               FINANCING UPDATE                                

Further to a meeting with the Company's bankers relating to its invoice
discounting facility, the Company was informed that its bankers intended to cap
the amount of the facility at £1.1 million. Previously the facility had been
linked to debtor balances which are expected to increase sharply over the next
few weeks as the company enters its summer season. The Company is taking steps
to accelerate cash collection as far as possible, however, the decision by the
Company's bankers leaves the Company with constrained funding in coming months.

The Board has entered into discussions with other potential providers of
finance but at this time no alternative funding lines are available. The Board
believes that the action it is taking in response to this situation should be
sufficient to ensure the Company meets its short term working capital needs.

The Board has made good progress improving sales levels and reducing costs. In
addition a new management team is in place. Prior to becoming aware of the
bank's decision the Board had been optimistic as to the prospects of the
Company.

A further announcement will be made as soon as further news is available.


Enquiries:-

Hill Station plc
Bill Mapstone
Chairman
Tel: [phone]

Nominated Adviser
City Financial Associates Limited
Tony Rawlinson
Chairman
Tel: [phone]



END