RVYI Recovery Tst.

    20 July 2007

                              RECOVERY TRUST PLC                               

                                (the "Company")                                

             Redemption of ZDPs and Members' Voluntary Liquidation             

Introduction

The Board announced on 26 January 2007 that it would not be bringing forward
proposals for the continuance of the Company beyond 15 August 2007, on which
date it is obliged under the Company's Articles of Association to hold an
extraordinary general meeting at which resolutions will be proposed to the
effect that the Company be wound up on that date.

The Board today announces that it has posted a Circular to Shareholders
providing further details of those proposals, which, inter alia, are
conditional on the approval of Shareholders at the Extraordinary General
Meeting. A notice convening the Extraordinary General Meeting is set out in the
Circular. The Board is recommending that Shareholders vote in favour of both
the resolutions to be proposed at the Extraordinary General Meeting.

Background

The Board announced on 6 July 2007 that in accordance with the prospectus
published by the Company in August 2001 and the provisions of the Company's
Articles of Association the Company has begun the process of redeeming the
ZDP's in issue. They will be redeemed at their full entitlement of 167.74p per
share on or around 6 August 2007. Assuming that all the ZDP's are redeemed on
that date (and based on the net asset value of the Company, including estimated
current period revenue reserves, as at 16 July 2007 (the latest practicable
date prior to the publication of the Circular)) the Company will have total net
assets of approximately �6.8 million representing a NAV per Ordinary Income
Share (which will be the only class of share in issue) of 22.77p per Ordinary
Income Share.

The Company's Articles provide that the Board is obliged to convene an
extraordinary general meeting of the Company to be held on 15 August 2007 at
which a special resolution will be proposed pursuant to section 84 of the
Insolvency Act 1986 requiring that the Company be wound up on a voluntary basis
unless the Board shall have previously been released from its obligation to do
so by a special resolution of the Company. The Board has not been released from
this obligation and accordingly, in compliance with the Articles, at the end of
the Circular there is a notice convening an Extraordinary General Meeting to be
held at 11.00 a.m. on 15 August 2007 at which, inter alia, a special resolution
will be proposed to wind-up the Company and to appoint Nicholas James Dargan
and Nicholas Guy Edwards both of Deloitte & Touche LLP as Joint Liquidators.

Under the Company's Articles, the voting rights were weighted in such a manner
that if, at the EGM, the ZDPs were still in existence then any one ZDP
Shareholder voting in favour of the special resolution to wind up the Company
would be sufficient to see such resolution passed and the Company put into
liquidation. This mechanism was put in place to ensure that, unless they had
been redeemed, the holders of the ZDPs would be able to ensure the liquidation
of the Company at which time they would enjoy a first call on its assets to
receive the amount that they were due to receive on 15 August 2007.

As the ZDPs will have been redeemed prior to the EGM (and provided they have
been so redeemed) they will not be entitled to vote at the EGM and the only
persons thus entitled to vote on the Resolutions will be the holders of
Ordinary Income Shares. The Resolutions are special and extraordinary
resolutions and therefore unless holders of Ordinary Income Shares representing
75 per cent or more of those voting, vote in favour of the Resolutions the
Resolutions will not be passed and the Company will continue in existence.

The Board is of the opinion that absent any proposal from a third party to
utilise the Company as a "shell" or otherwise being received by the date of the
EGM, the Company will not (with total assets of approximately �6.8 million
following redemption of the ZDPs) be a viable concern bearing in mind the fixed
level of overheads it has nevertheless to bear. In the event of any such
proposal being received the Board will as soon as reasonably practicable make
an announcement setting out the relevant proposals and changing its
recommendation if appropriate.

Entitlement on winding-up

Following the redemption of the ZDPs, on a winding-up the surplus assets of the
Company after payment of all debts and satisfaction of all liabilities shall be
distributed to holders of Ordinary Income Shares.

The Liquidators shall retain a fund of an amount they consider sufficient to
provide for all outstanding liabilities of the Company, including unknown or
contingent liabilities and the costs incurred by, or in respect of, the Company
and the Liquidators in relation to the Proposals. The retention for unknown
liabilities is expected to be �50,000 and the Directors, having made enquiries,
are satisfied that this is a reasonable amount to be retained for unknown
liabilities. To the extent that any part of the sum is not required, any
surplus cash will be paid in due course to Ordinary Income Shareholders as one
or more distributions in accordance with the Articles provided that if any such
sum payable is less than �3.00 it shall not be paid but shall be paid to the
Haberdashers' Foundation (charity registered number 275067).

On the basis of the net asset value of the Ordinary Income Shares, including
estimated current period revenue reserves, of 22.77p as at 16 July 2007 (the
latest practicable date prior to the publication of the Circular) and the ZDPs
having been redeemed prior to a winding-up of the Company the Liquidators have
indicated that, on present information they anticipate being in a position to
make a first distribution of in excess of 21.00p per Ordinary Income Share to
those Ordinary Income Shareholders who hold their Ordinary Income Shares
through CREST by crediting their CREST accounts by 22 August 2007 and to those
Ordinary Income Shareholders who hold their Ordinary Income Shares in
certificated form by sending Sterling cheques by 22 August 2007. However, the
amount and timing of the distribution will depend on whether any material
claims are identified by the Liquidators.

All cheques will be sent by post to the Ordinary Income Shareholders' addresses
in the register of members as at 15 August 2007 at the risk of the Shareholders
entitled thereto.

The Liquidators may hold the liquidation open pending clarification of the
outcome of the AIC case. The "AIC Case" is a test case brought by The
Association of Investment Companies and JPMorgan Fleming Claverhouse Investment
Trust plc with regard to the value added tax treatment of fees relating to the
management of investment trusts. Unlike the position regarding UK authorised
unit trusts and UK open-ended investment companies, fees relating to the
management of the assets of investment trusts are subject to value added tax at
the standard rate. The European Court of Justice has ruled that investment
trusts are entitled to a VAT exemption on their management expenses. As the
claimants have succeeded in the litigation, management fees should be treated
as exempt from value added tax and investment trusts may be able to recover
certain amounts paid as value added tax in the past. Further clarification is
awaited from The Association of Investment Companies and HM Revenue & Customs
regarding the practical implications of this decision. Any such amounts (after
allowing for the costs of recovery) would be distributed to Ordinary Income
Shareholders as one or more liquidation distributions.

ZDPs

The register of ZDP Shareholders shall be closed at close of business on 6
August 2007. All transfers should therefore be lodged with the Company's
Registrar prior to that time. Transfers received by the Registrars after 6
August 2007 will be returned to the persons lodging them. The Company shall
redeem all ZDPs prior to the winding-up of the Company on 6 August 2007 in
accordance with the Articles for the full capital entitlement of 167.74p per
ZDP.

Cheques for the redemption entitlement are expected to be despatched to those
ZDP Shareholders on the Register at close of business on 6 August 2007 holding
ZDPs in certificated form on 13 August 2007 and CREST accounts of those holding
ZDPs in CREST on 6 August 2007 will be credited on 13 August 2007.

Following the redemption (and conditional on the same having occurred) of the
ZDPs, the ZDP Shareholders will have no rights to attend or vote at the
Extraordinary General Meeting. ZDP Shareholders may, however, complete and
return the form of proxy as described in the Circular as they do have a right
to vote at the Extraordinary General Meeting at the time of posting of the
Circular. Any proxy forms returned will, however, be disregarded following the
redemption (and conditional on the same having occurred) prior to the
Extraordinary General Meeting.

Ordinary Income Shares

On a winding-up of the Company, Ordinary Income Shareholders will receive their
entitlement on a winding-up as described under the heading "Entitlement on
winding-up" above. Ordinary Income Shareholders are not required to take any
action in order to receive their liquidation entitlement.

Ordinary Income Shareholders are, however, requested to complete and return the
form of proxy as described in the Circular.

Management agreement

The management agreement entered into between the Company and the Manager dated
2 January 2003 will terminate automatically, with no compensation payable, in
relation to the Company on the date the Company is put into voluntary
liquidation pursuant to the Articles. The Board wishes to express its
appreciation on behalf of shareholders for the Manager's performance since
their appointment in January 2003.

Taxation

The information below, which is intended as a general guide and which relates
only to United Kingdom taxation, is applicable only to Shareholders who are
resident or ordinarily resident in the United Kingdom for tax purposes or who
are carrying on a trade in the United Kingdom through a permanent establishment
with which their investment is connected and who hold their shares in the
Company beneficially as an investment; it does not apply to certain classes of
persons such as securities dealers.

This information is based on existing United Kingdom law and HM Revenue &
Customs ("HMRC") practice and is subject to subsequent changes therein and does
not constitute legal or tax advice.

Redemption of ZDP Shares

ZDP Shareholders will be treated on redemption for tax purposes as though they
are in receipt of a distribution of 67.74 pence per ZDP; this amount represents
the premium payable on redemption of the ZDPs over and above the amount
originally subscribed. The capital element of the redemption proceeds will be
brought into account for the purposes of UK taxation of chargeable gains.

Individual ZDP Shareholders resident in the United Kingdom for tax purposes
will be entitled to a tax credit in respect of such distribution at the rate of
1/9th of the cash distribution or 10 per cent of the aggregate of the cash
distribution and the tax credit. Such Shareholders will be liable to income tax
(if at all) on the aggregate of the distribution and the associated tax credit
at, in the case of starting and basic rate taxpayers, the dividend ordinary
rate (10 per cent in 2007/08) or, in the case of higher rate taxpayers, the
dividend upper rate (32.5 per cent in 2007/08). Therefore taxpayers who, after
taking account of dividend income, are liable to United Kingdom tax at the
starting or basic rate will have no further liability to income tax. United
Kingdom resident Shareholders will not be able to reclaim tax credits in
respect of the distribution.

A company resident in the United Kingdom for tax purposes will not generally be
liable to United Kingdom corporation tax on the distribution.

Ordinary Income Shares

The interim dividend will be treated as a distribution in the hands of holders
of Ordinary Income Shares.

Individual Ordinary Income Shareholders resident in the United Kingdom for tax
purposes will be entitled to a tax credit in respect of such distribution at
the rate of 1/9th of the cash distribution or 10 per cent of the aggregate of
the cash distribution and the tax credit. Such Shareholders will be liable to
income tax (if at all) on the aggregate of the distribution and the associated
tax credit at, in the case of starting and basic rate taxpayers, the dividend
ordinary rate (10 per cent in 2007/08) or, in the case of higher rate
taxpayers, the dividend upper rate (32.5 per cent in 2007/08). Therefore
taxpayers who, after taking account of dividend income, are liable to United
Kingdom tax at the starting or basic rate will have no further liability to
income tax. United Kingdom resident Shareholders will not be able to reclaim
tax credits in respect of the distribution.

A company resident in the United Kingdom for tax purposes will not generally be
liable to United Kingdom corporation tax on the distribution.

Distributions made to holders of Ordinary Income Shares after the passing of
the special resolution to wind up the Company will generally constitute a
disposal for the purposes of United Kingdom taxation of chargeable gains.
Accordingly, Ordinary Income Shareholders, other than shareholders taxed as
dealers in securities, may become liable to tax on chargeable gains in respect
of that amount of the amounts so distributed as exceeds the attributable base
cost. To the extent that the amount so distributed is less than the
attributable base cost, such a shortfall will be an allowable loss for United
Kingdom capital gains tax purposes.

For Ordinary Income Shareholders who are individuals, taper relief and for
Ordinary Income Shareholders within the charge to United Kingdom corporation
tax, indexation allowance, may reduce a chargeable gain but will not create or
increase an allowable loss. The availability of taper relief will depend on the
period of ownership of the Ordinary Income Shares and whether the Ordinary
Income Shares are held as business assets or non-business assets.

Stamp Duty

The redemption of the ZDP Shares and the distributions made to Ordinary Income
Shareholders will not give rise to a charge under Stamp Duty or Stamp Duty
Reserve Tax.

If you are in any doubt about your taxation position, or may be subject to tax
in a jurisdiction other than the United Kingdom, you should immediately seek
advice from your own professional advisers.

Listing and dealings

The Company has applied for (i) the listing of the ZDPs on the Official List of
the UK Listing Authority and dealings on the London Stock Exchange to be
suspended at 7.30 a.m. on 7 August 2007; (ii) the listing of the Ordinary
Income Shares on the Official List of the UK Listing Authority and on the
London Stock Exchange to be suspended at 7.30 a.m. on 15 August 2007; and (iii)
the listing of the ZDPs on the Official List of the UK Listing Authority and
dealings on the London Stock Exchange to be cancelled at 8.00 a.m. on 14 August
2007.

Expected Timetable

Interim Dividend record date 3 August 2007

Record date for entitlement to ZDPs redemption proceeds, register of ZDP
Shareholders closed and redemption of ZDPS at close of business on 6 August
2007

Suspension of listing and dealings in ZDPs on the London Stock Exchange 7.30
a.m. 7 August 2007

CREST accounts credited in respect of redemption payment for those holding ZDPs
in CREST 13 August 2007

Cheques despatched in respect of redemption payment for those holdings ZDPs in
certificated form 13 August 2007

Payment of Interim Dividend 13 August 2007

Latest time and date for receipt of Forms of Proxy for the Extraordinary
General Meeting 11.00 a.m. on 13 August 2007

Cancellation of listing and dealing in ZDPs on the London Stock Exchange 8.00
a.m. on 14 August 2007

Register of Ordinary Income Shareholders closed at close of business on 14
August 2007

Suspension of listing and of dealings in Ordinary Income Shares on the London
Stock Exchange 7.30 a.m. 15 August 2007

Extraordinary General Meeting 11.00 a.m. on 15 August 2007

CREST accounts credited in respect of the first liquidation distribution for
those holding Ordinary Income Shares in CREST by 22 August 2007

Cheques despatched in respect of the first liquidation distribution for those
holding Ordinary Income Shares in certificated form by 22 August 2007

Terms used in this announcement shall, unless the context requires otherwise,
bear the meanings defined in the Circular dated 20 July 2007.

A Circular containing full details of the Proposals and including a notice
convening the meeting at which Shareholder approval will be sought is being
posed to Shareholders today. Copies of the Circular will shortly be available
for inspection at the UK Listing Authority's document viewing facility, which
is situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London

E14 5HS

Enquiries

Tracey Brady

Capita Sinclair Henderson Limited

Company Secretary 01392 477 513



END

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