MercoPress. South Atlantic News Agency

Falkland Island Holding plc

Sales of the Falkland Oil and Gas Limited Shares

Falkland Islands Holdings plc (FIH), and AIM quoted company operating (through its subsidiaries) a range of businesses in the Falkland Islands, and the Portsmouth Harbour Ferry Company in the UK, announces that on 21 February 2006, it sold 1,802,941 shares in Falkland Oil and Gas Limited (FOGL), representing 10.7% of its holding in FOGL and representing 1.96% of the current issued share capital of FOGL.

The shares were sold for a net consideration of £ 2.4 million, generating a profit of £ 2.1 million for FIH. The funds will be used in FIH's business and will provide additional financial flexibility to facilitate future acquisitions. Following the transaction, FIH retains a shareholding of 15,000,000 shares in FOGL, representing 16.3% of FOGL's current issued share capital.

The board of FIH has advise FOGL and KBC Peel Hunt that FIH does not intend to dispose of any further share in FOGL, other than in exceptional circumstances, for at least the next 12 months. KBC Peel Hunt is Nominated Adviser and Broker to FOGL and Broker to FIH for the purposes of the AIM Rules and Dawnay Day is the Nominated Adviser to FIH.