Sale of Interests

Leo Capital Plc
06 October 2006


6 October 2006

                 Leo Capital plc ('Leo Capital'/'the Company')

        SALE OF INTERESTS IN NINE US PRIVATE EQUITY LIMITED PARTNERSHIPS


Leo Capital, the AIM listed investment company with stakes in public and private
UK and US companies and funds, is pleased to announce that it has signed an
agreement for the sale of certain of its US limited partnership interests.

The Company has agreed to sell its interests in nine limited partnerships for
consideration of US$21.1 million (£11.1 million) in cash which reflects a
premium before costs of US$1.2 million (£0.6 million) over the value of those
interests at 31 March 2006 of US$19.9 million (£10.5 million). The final
proceeds will be adjusted for capital calls and distributions by the nine
limited partnerships between 31 March and completion. The sale will also reduce
the Company's commitments in respect of uncalled capital relating to these
interests by US$10.0 million (£5.3 million).

At 31 March 2006 the Company's interests in private equity limited partnerships
totalled £72.4 million. Commitments to these funds in respect of uncalled
capital at that date were £54 million.

In the year ended 31 March 2006, the nine limited partnership interests being
sold generated net realised gains of £158,000 and a net increase in fair values
of £517,000. The management costs attributable to the nine interests were
£532,000.

The transfer of the Company's interest in each of the limited partnerships
involved is expected to be complete by the middle of November.

Commenting on the transaction, Robert Rayne, Chief Executive Officer of the
Company, said: 'As part of the active management of our capital we have taken
advantage of a strong secondary market. We shall use the proceeds to invest in
direct investments as well as in new funds which offer co-investment
opportunities.'


For further information please contact:

Leo Capital plc                                       Brunswick
Robert Rayne, CEO                                     Simon Sporborg
Tony Sweet, CFO                                       Anisha Patel
Tel: [phone]                                    Tel: [phone]



Notes to Editors

Leo Capital plc is an independent investment company whose shares are traded on
AIM. It was formed to receive the demerged investment division of London
Merchant Securities plc. 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.
At 31 March 2006 the structure of the investment portfolio was as follows:


                                 US              UK                  Total

                                £'000                £'000           £'000

Quoted securities               37,897              18,924           56,821
Unquoted securities             13,316              84,018           97,334
Funds                           62,291              10,154           72,445
                               -------              -------          -------
            Total              113,504              113,096          226,600
                               -------              -------          -------

Website www.leocapitalplc.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange