Update re Valuation (6091V)

TIDMHRCO

RNS Number : 6091V

Hirco plc

16 January 2012

News Release

16 January, 2012

Announcement regarding Cushman Wakefield Valuation

LONDON - Hirco PLC (AIM: HRCO), announces that it has received from its joint venture partner, Hiranandani Developments Private Limited ("HDPL"), a Cushman & Wakefield International (CWI) valuation report regarding the Panvel and Chennai development projects. The CWI report values the Panvel and Chennai projects at a total amount of GBP556m based on what they term best use assumptions.

Hirco previously released a report from its own valuers, CBRE, which valued the projects at GBP343m based on "current development assumptions." The CBRE report also valued the projects at GBP501m based on best use assumptions. The primary reasons for the difference between CBRE's GBP501m valuation figure and CWI's GBP556m valuation figure are that CBRE uses a higher cost of capital than CWI while CWI makes more aggressive assumptions regarding the absorption of product into the Panvel and Chennai markets.

Contacts:

Hirco Plc

Nigel McGowan

Company Secretary

[e-mail]

Singer Capital Markets Limited (Nominated Adviser)

James Maxwell (Corporate Finance)

[phone]

ENDS

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