Sale of ECI Ltd & Nav Update

LMS Capital PLC
31 March 2008


31 March 2008

                                LMS Capital plc


           SALE OF ENERGY CRANES INTERNATIONAL LIMITED AND NAV UPDATE


Sale of Energy Cranes International Limited


LMS Capital plc ("LMS" or "The Company") is pleased to announce that it has sold
its entire holding in Energy Cranes International Limited ("Energy Cranes") to a
management buyout team backed by Close Brothers Private Equity ("CBPE").


The transaction places an enterprise value on Energy Cranes of £142 million and
the net proceeds to LMS are £83 million in cash, which will be applied to the
development of LMS's investment portfolio and used for general corporate
purposes. LMS's return on equity from its investment in Energy Cranes is
approximately 4.5 times, with an Internal Rate of Return of approximately 40%.


Energy Cranes was formed in 2003 when LMS acquired Sparrows Offshore,
headquartered in Aberdeen, and several months later merged the business with
American Aero and Titan Cranes, based in the Gulf of Mexico. LMS's equity
investment in the two transactions totalled £17.8 million.


Energy Cranes provides a wide range of crane-related services to the offshore
oil and gas industry and has become increasingly international in its
operations. Growth has been through organic development and through strategic
acquisitions, both in the Gulf of Mexico (Dynamic Cranes in 2006, Marine &
Mainland in 2007) and in the North Sea (Aberdeen Hydraulics in 2007). The
company has a presence in many further locations including the Caspian, the
Middle East, West Africa, Brazil, and Asia-Pacific. Employee numbers now exceed
1700.


Energy Cranes' turnover has nearly doubled during the last five years to
approximately £114 million for the year ended 31 December 2007, while
profitability has increased at an even greater rate. Pre tax profits for 2007
were £2.7 million and net assets at the year end were £18.8 million.


Commenting on the transaction, Martin Pexton, Managing Director of LMS, said:
"Energy Cranes is an excellent company with deep engineering expertise, a high
calibre workforce, an enviable health and safety record and a strong customer
base around the world. We are pleased to have been able to support its
development into a global business and, by adding value, to have delivered
strong returns for our investors. We wish the team every success for the
future."


John Jordan, Chief Executive Officer of Energy Cranes, said: "LMS has been a
very supportive investor and we have enjoyed a strong working relationship
during their period of ownership. We have made a significant investment in our
infrastructure to prepare for the next phase of development and look forward to
working with CBPE to grow the company further."


Advisors to Energy Cranes and LMS on the transaction were Simmons & Company and
Paull & Williamsons. CBPE were advised by KPMG and Maclay Murray & Spens. Ernst
& Young and Dundas & Wilson advised management.


Net Asset Value - update


On 26 March 2008 LMS released its preliminary results for the year ended 31
December 2007 at which date the Company's Net Asset Value ("NAV") per share was
101 pence. The Company is taking this opportunity to provide an update on its
NAV per share following the sale of Energy Cranes.


The pro forma NAV per share following the sale of Energy Cranes is 107 pence.
This pro forma figure is based on the reported NAV at 31 December 2007 as
increased by the amount by which the net proceeds to LMS from the sale of Energy
Cranes exceed the carrying value of the investment at 31 December 2007. No
account has been taken of changes in value of other investments in LMS's
investment portfolio, nor of trading since 31 December 2007.


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


Arbuthnot Securities Limited                       020 7012 2000
Alastair Moreton

Brunswick Group LLP                                020 7404 5959
Simon Sporborg
Leonora Pou

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.


www.lmscapital.com




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