CAPITAL & REGIONAL APPOINTS PIERRE-YVES GERBEAU AS CHIEF EXECUTIVE OF
XSCAPE

Capital & Regional plc, the specialist retail and leisure property
company today announces P-Y Gerbeau as Chief Executive of Xscape Ltd.

P-Y Gerbeau was previously Chief Executive of the Millennium Dome. In
his earlier career, P-Y was Vice President of Park Operations for Euro
Disney, Europe's largest visitor attraction. Outside commercial life, he
holds the position of Executive-in-Residence at the London Business
School.

Xscape is an innovative concept, the first of its kind in Europe, a
destination offering entertainment and sports with lifestyle brands,
bars and cafes and Europe's biggest indoor 'real snow' ski slope. The
first Xscape opened in Milton Keynes in June 2000. It is a spectacular
building over half a million square feet and to date has attracted over
4 million visitors, an average of over 80,000 people a week.

Commenting on this key appointment, Martin Barber, Chief Executive of
Capital & Regional said:

"Last year, Capital & Regional opened an innovative concept, Xscape,
combining urban sports and shopping under one roof. Realising the
formidable value and expansion potential of combining the two worlds of
property development with leisure, entertainment and entrepreneurial
skills, we approached P-Y to help us build Xscape as an international
brand and business."

P-Y Gerbeau said:

"I immediately recognised the enormous potential of a great brand in
Xscape. This opportunity allows me to combine all my skills in brand
management and leisure-entertainment businesses and I passionately
believe Xscape will be 'The Destination of the Future'."

FOR FURTHER INFORMATION PLEASE CONTACT:

Capital & Regional plc
Martin Barber, Chief Executive 020 7932 8000
Sarah Carrell, Head of Corporate Communications

Edelman
Stephen Benzikie 020 7344 1325

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NOTES TO EDITORS:

Xscape

Xscape, Milton Keynes is a 50:50 joint venture between Capital &
Regional plc and two funds managed by PRICOA Property Investment
Management Limited.

Further Xscape projects are being pursued in Castleford, Yorkshire on
the M62, adjacent to the Freeport factory outlet centre; Braehead in
Glasgow alongside our joint venture partner, Capital Shopping Centres
and a major one million sq ft Xscape at...