LMS Capital - Investment

LMS Capital PLC
29 June 2007

29th June, 2007

                    LMS Capital invests in Brockton Capital

LMS Capital plc, ("LMS Capital" or "the Company"), the AIM-quoted investment
company with stakes in public and private UK and US companies and funds, today
announces the acquisition of a 16.7% interest in Brockton Capital Fund 1 LP
("Brockton Capital"), a real estate opportunity fund, and a 9% interest in the
Brockton Capital management company (together, "Brockton"), from Derwent London
plc ("Derwent") for £7.9 million in cash. Derwent acquired the asset as part of
its merger with London Merchant Securities plc.

LMS Capital typically invests in companies and sectors that have the potential
for superior growth over the medium to long term and where management has
extensive prior investment experience. These include the following sectors:
Energy, Applied Technology, Media & Leisure and Healthcare & Medical. As stated
previously by the Board, LMS Capital has been looking for opportunities in new
sectors, in particular real estate where management has a strong track record.

Brockton Capital was established in 2005 by property entrepreneurs David Marks
(formerly of Blackstone) and Jason Blank (formerly of Merrill Lynch) and has
funds under management of £135 million. The book value of Derwent's investment
in Brockton was £6.9 million as at March 2007 and the pre-tax loss attributable
to it in the 10 months to 31 December 2006 was £174,000. The outstanding capital
commitment is approximately £16 million, which has been assumed by LMS Capital.

As a result of Robert Rayne's position as Chief Executive of LMS Capital and
Chairman of Derwent and his family's substantial interests in LMS Capital and
Derwent, the acquisition of the stake in Brockton is a related party transaction
under the AIM Rules. The LMS Capital directors (with the exception of Robert
Rayne), having consulted with N M Rothschild and Sons Limited, consider the
terms of the transaction to be fair and reasonable insofar as LMS Capital's
shareholders are concerned .

                                    # Ends #


For further information please contact:

LMS Capital plc 020 7935 3555
Robert Rayne, Chief Executive Officer
Martin Pexton, Managing Director
Tony Sweet, Chief Financial Officer

Brunswick Group LLP 020 7404 5959
Simon Sporborg / Anisha Patel

N M Rothschild & Sons Limited 020 7280 5000
Duncan Wilmer

About LMS Capital

LMS Capital plc is an independent investment company whose shares are traded on
AIM. The investment portfolio comprises investments in both the US and UK, with
a spread of early stage and second round technology investments, development
capital and mature company buy-outs.



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