RNS Number:1617S
Eurocity Properties PLC
28 February 2002

                                      ANNOUNCEMENT

             Eurocity Properties PLC ("Eurocity" or "the Company")

        Proposed Acquisitions and Temporary Suspension of Trading on AIM

The Directors of Eurocity announce that the Company has entered into a
conditional agreement to acquire all of the issued share capital of Uniplan
Assets Limited ("Uniplan") and Fu Keung Venture Limited ("FKV") ("the
Acquisition").

The Acquisition is subject, inter alia, to the completion of satisfactory due
diligence and the approval of the shareholders of the Company in general
meeting. Uniplan and FKV together beneficially own 99% of Lanzhou International
Trade Building Company Limited ("Lanzhou"). The remaining 1% of Lanzhou is owned
by Gansu Economic Cooperation Commerce & Trade Company.

Lanzhou owns the equivalent of a long leasehold interest in the main building
("Main Building") at the Lanzhou International Trade Center, 258-260 Qingyang
Road, Lanzhou, Gansu Province, People's Republic of China. The Lanzhou
International Trade Center is a large scale urban renewal project initiated in
1993 and comprises the partly completed Main Building (which comprises a
completed and partly let retail podium and base for a proposed hotel tower), a
completed hotel/commercial composite building and a completed office/commercial
composite building. The latter two buildings have already been disposed of by
Lanzhou and will not form part of the Acquisition.

The Main Building has been valued by CB Richard Ellis at £42.89m (based upon an
exchange rate of RMB 11.7736:£1, being the mid market rate as at close of
business on 26 February 2002) and the aggregate net asset value of the interests
being acquired is anticipated to be approximately £39 million on completion. The
consideration for the proposed Acquisition is £39.1m, to be satisfied entirely
by the issue of 78,181,818 new ordinary shares in Eurocity at 50p per share.

The Acquisition constitutes a "reverse takeover" under the AIM Rules of the
London Stock Exchange and accordingly requires the consent of Eurocity
shareholders. In accordance with the AIM Rules regarding reverse takeovers, the
Board of Eurocity has decided to seek a suspension of trading in its shares.

In addition, following completion of the Acquisition the vendors of Uniplan and
FKV will hold in excess of 30% of the enlarged issued share capital of Eurocity.
Consequently, Eurocity will be seeking a waiver of Rule 9 of the City Code on
Takeovers and Mergers, which would otherwise require the vendors of Uniplan and
FKV to make a general offer to Eurocity shareholders.

Further information on the Acquisition will be set out in a circular which will
be despatched to Eurocity shareholders at the earliest practicable opportunity.




        Press enquiries

        Baron Bloom, Managing Director

        Eurocity Properties PLC                         020 7286 4433



        Robert Lo/Keith Smith

        Nabarro Wells & Co. Limited                    020 7710 7400



        27 February 2002




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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