CW Residential PLC (the "Company")

25 September 2008

Posting of interim results for the six month period ended 30 June 2008

The Company is pleased to announce its interim results for the six month period ended 30 June 2008. In line with AIM Rule 20 the interim results will be posted to shareholders in due course and will shortly be available in the Investor Relations section of the Company's website at http://www.cwresidential.co.uk/investor-relations.php.

CHAIRMAN'S STATEMENT

Trading results 

Trading results for the six month period ended 30 June 2008 show a loss before taxation of £112,909 (30 June 2007: loss before taxation of £149,967) (31 December 2007: full year profit before taxation of £132,964). All figures are prepared in accordance with IFRS (International Financial Reporting Standards). 

Dividend

Towards the end of the year we expect to receive the proceeds of the pre-sold flats at our last remaining development at Rochester (see below).  On completion of these sales, your directors propose to pay an increased dividend of 1.97 pence per share (interim dividend 2007: 1.88 pence per share). The appropriate announcement will be made in due course.

Development division

At our remaining development in Rochester, completion of construction of our 23 flats is expected towards the end of this year. We have exchanged on 13 and a further 2 are under offer. Marketing of the remaining 8 flats will begin when our show flat is ready. In Maidstone, construction of our 4 flat scheme will not commence until the housing market improves. 

Investment division

There have been no purchases or sales since 31 December 2007. The letting market is currently strong but shareholders should bear in mind recently reported house price falls and so there may be a reduction in the carrying value of our investment property portfolio on our annual revaluation at 31 December 2008. In common with other house builders, Leighton & Henley Plc, the Berkhamsted based house builders in whom we hold an investment, are experiencing difficult trading conditions, with few sales currently taking place. Again, at our year end we will be reviewing the carrying value of this investment.

Healthcare division 

Occupancy at Rhymecare's Pulborough retirement home continues to be strong, with that of their Fishbourne (Chichester) nursing home continuing to increase. Whilst negotiations for the purchase of a third home failed to be satisfactorily concluded, Rhymecare continue to look for another one.  

Buy back of share capital 

In the six months to 30 June 2008, we bought back 217,400 ordinary shares at an average cost of 142p per share for cancellation, with the aim of increasing the net assets per share. This purchase represented 5.79% of our then issued share capital. Since 30 June 2008 we have repurchased a further 44,000 shares at 118p per share for cancellation. There are therefore now 3,493,600 ordinary shares in issue. 

Future direction 

Currently your directors have no investments or development sites under consideration. With a current gearing below 20% of shareholders' funds (before the receipt of flat sales at Rochester), your Group is well placed to take advantage of possible interesting situations that may occur in due course in these markets. 

Robert Döry 

Chairman 

24 September 2008 

Enquires: 

CW Residential PLC                        Tel: 020 7131 4208

Robert Döry

Landsbanki Securities (UK) Limited  Tel: 020 7426 9000 

Jeff Keating

Ellie Taylor

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2008

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF RECOGNISED

INCOME AND EXPENSE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

as at 30 June 2008

UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2008