Concert Party Request

LMS CAPITAL PLC                                

                             CONCERT PARTY REQUEST                             

LMS Capital plc (LMS or the "Company") announces that its Chairman, The
Honourable Robert Rayne, and certain members of the Rayne concert party
together holding shares representing approximately 35 per cent. of the entire
issued share capital of the Company (the "Concert Party"), have indicated that
they would like the Company to be broken up in the short term.

In August 2010, the Board of Directors set out a revised strategy to pursue
direct investments in growing, profitable businesses primarily in the energy,
consumer and business services sectors, funded by realisations from the
Company's existing quoted, direct and fund investments. Significant progress
has been made to date, including owned EBITDA increasing 42% for the six months
to 30 June 2011, reflecting increased focus on profitability and cash
generation.

In light of this and, having considered the Concert Party's request and taken
independent financial advice from Quayle Munro Limited, the Directors, by a
majority of six to two (such two including Robert Rayne), do not believe that a
break-up of the Company at this time would be in the best interests of
shareholders as a whole.

The Board has appointed an independent committee comprising the Non-Executive
Directors excluding Robert Rayne (the "Independent Committee"), to consider all
issues related to the Concert Party. The Independent Committee is chaired by
John Barnsley, the Senior Independent Director. Robert Rayne has agreed to
recuse himself from any Board discussions relating to Concert Party matters.

The Board has provided some limited financial information to the Concert Party
for review. The Board will have appropriate regard to the Concert Party's
stated objectives when making material investment decisions. A further
announcement will be made in due course.

Enquiries

Quayle Munro:
Andrew Tuckey / Colin La Fontaine Jackson 020 7907 4200

Brunswick Group
Simon Sporborg / Fiona Micallef-Eynaud 020 7404 5959

About LMS

LMS is an investment company focused on investing in profitable and growing
private companies where our involvement is additive to the value and
performance of the company. Our focus is on small to medium sized companies in
our preferred sectors of consumer, energy and business services. We partner
with experienced managers in profitable, growing companies where we believe we
can add value. We aim to grow our investments (and NAV) by 15%+ per annum
without undue risk or investing in unproven businesses.

Our recent deal experience has confirmed to us that potential partners place
great store on working with people who not only understand their business
(typically through previous deals in the same sector) but also have themselves
worked in operational management positions and who therefore understand and
empathise with the role of management in a business partnership.

The Company's Net Asset Value at 30 June 2011 was £252.4 million - including
the investment portfolio valued at £224.3 million and net cash of £30.5
million. Harvesting our legacy investments should produce the capital required
to finance growth at our existing and new direct holdings.