Interim Management Statement

13 May 2010

                                LMS Capital plc                                

                         Interim Management Statement                          

LMS Capital is holding its Annual General Meeting today and the Board is
pleased to present the Company's Interim Management Statement as required by
the UK Listing Authority's Disclosure and Transparency Rule 4.3. This statement
relates to the period from 1 January 2010 to 12 May 2010.

Overview

LMS Capital is an investment company with over 30 years' experience in private
equity and development capital investment. Our objective is to deliver superior
absolute returns for shareholders through a portfolio of direct investments;
our focus is on small to medium sized companies in our preferred sectors of
energy services, applied technology, and media and consumer.

We seek to partner with experienced managers in profitable, growing companies
where we expect to be able to add value. Our focus is on buying and investing
in management teams and companies at favourable prices: on the assumption of
gradual economic improvement our outlook is positive on the investment
environment and we expect M&A activity to increase accordingly. We will
continue to be cautious in our investment approach, aiming to grow our
investments (and NAV) by 15%+ per annum without undue risk or investing in
unproven businesses.

In March we invested £7.9 million to acquire a significant minority stake in
Apogee Group Limited ("Apogee"). Apogee is one of the UK's leading independent
digital printing solutions providers and offers sales and servicing of
printers, photocopiers and multi-function devices to a diversified, growing
client base. This is a business that is benefiting from sophisticated workflow
management systems and the growth of colour printing. Results for the financial
year ended 31st December 2009 and the first quarter of 2010 indicate that
Apogee continues to grow sales and profitability in line with our expectations.

At 31 March 2010 LMS Capital had uncalled commitments to funds of £55.8
million; our experience suggests that the full amount is rarely drawn and our
review of each fund suggests that the actual funding to be called could be £10
million less. We expect these funds to be called over the next three to five
years. Cash and other liquid assets (including the value of our quoted
portfolio) were £58.2 million; further, we have a borrowing facility of £15
million of which £10 million remains undrawn.

While recovery from the global recession is still at an early stage, the
experience of our portfolio companies is that the worst appears to be behind
them. Our management teams remain focused on cost management and we expect
revenue growth and improved earnings performance from a number of these
portfolio companies over the next 12-24 months.

Portfolio subsidiaries

The latest available trading results for our portfolio subsidiaries are to 31
March.

  * We are very pleased with the progress made by Updata which continues to
    perform in line with our expectations when we invested in July 2009.
    Revenues and profit are significantly ahead of the same period last year;
   
  * Wesupply, Kizoom and CopperEye achieved first quarter revenues ahead of the
    corresponding period last year and their EBITDA performance, while still
    negative, is substantially better as a result of the 2009 cost cutting
    measures.
   
  * Entuity experienced strong bookings in the first quarter, especially
    through partners. Its revenues in the first quarter were lower than last
    year, but this was due to a timing delay and the current outlook is
    positive;
   
  * ITS (formerly Offshore Tool & Energy) has felt the effects of severe
    capital spending reductions by customers but the company is seeing an
    improvement in the outlook for the second half of the year and beyond.
   
Financial information

The Company's unaudited net asset value per share at 31 March 2010 was 86
pence, an increase of 2% since 31 December 2009. The principal factor in this
increase was the strengthening of the US dollar against sterling in the period.
The position at the end of April was substantially unchanged.

The carrying value of the portfolio at 31 March 2010 is based on the valuation
of the Company's investment portfolio as at 31 December 2009 with adjustments
for transactions in the three months ended 31 March 2010 including price
movements on quoted securities, movements in foreign currency exchange rates,
cash calls and distributions from funds and purchases and sales of quoted and
unquoted securities. In addition, where the Company has invested further
amounts in its existing unquoted portfolio, such amounts have been written off
as fair value adjustments in the period and investments in new unquoted
securities in the period are included at cost. The next full valuation of the
portfolio will be for our half year results as at 30 June 2010.

The Company's investment portfolio at 31 March 2010 (and 31 December 2009) was
as follows:

                     31 March 2010         31 December 
                                                   2009
                                                       
                             £'000                £'000
                                                       
US                                                     
                                                       
Quoted                      34,088               34,601
                                                       
Unquoted                    21,618               20,455
                                                       
Funds                       80,548               73,194
                                                       
US total                   136,254              128,250
                                                       
UK                                                     
                                                       
Quoted                      17,069               17,274
                                                       
Unquoted                    47,948               39,849
                                                       
Funds                       30,856               30,259
                                                       
UK total                    95,873               87,382
                                                       
Total                      232,127              215,632

During the three months ended 31 March 2010 total funds invested by the Company
were £11.7 million in unquoted securities and to meet fund calls. Proceeds from
fund distributions were £1.8 million. In April we sold certain of our quoted
holdings, including BJ Services, for proceeds of approximately £3.6 million
which was in line with the carrying value at the end of March.

The ten largest holdings at 31 March 2010 (excluding fund interests where the
Company has only a minority position) were as follows:

Name                   Geography           Type           Book    % of net
                                                          value    assets 
                                                                          
                                                          £'000           
                                                                          
Weatherford               US              Quoted           21,436       9%
International                                                             
Oilfield services                                                         
                                                                          
Method Products           US          SFEP portfolio       18,488       8%
Consumer products                        company                          
                                                                          
Prostrakan Group plc      UK              Quoted           15,049       7%
Specialty                                                                 
pharmaceuticals                                                           
                                                                          
Updata                    UK             Unquoted           8,000       3%
Infrastructure UK                                                         
                                                                          
Wide area networks                                                        
                                                                          
Apogee Group              UK             Unquoted           7,902       3%
                                                                          
Digital printing                                                          
solutions                                                                 
                                                                          
Rave Reviews Cinemas      US             Unquoted           7,619       3%
Cinema operations                                                         
                                                                          
HealthTech Holdings       US             Unquoted           7,496       3%
                                                                          
Hospital information                                                      
systems                                                                   
                                                                          
Penguin Computing         US          SFEP portfolio        5,982       3%
                                         company                          
Linux server systems                                                      
                                                                          
Wesupply B2B              UK             Unquoted           5,500       2%
connectivity                                                              
software                                                                  
                                                                          
Luxury Link               US          SFEP portfolio        4,587       2%
                                         company                          
Internet commerce                                                         
                                                                          
                                                          102,059      43%

Note: SFEP is San Francisco Equity Partners, a fund in which the Company has an
interest of 80%.

This statement is a general description of the financial position and
performance of the Company for the period from 1 January 2010 to 12 May 2010.
It does not contain any profit forecast or forward looking information. Future
performance and share price is likely to be affected by a number of factors,
including (but not limited to) general economic and market conditions and
specific factors affecting the financial performance or prospects of individual
investments within the Company's portfolio.

For further information please contact:

LMS Capital plc 020 7935 3555

Glenn Payne, Chief Executive Officer

Tony Sweet, Chief Financial Officer

J.P. Morgan Cazenove Limited 020 7588 2828

Michael Wentworth-Stanley

Brunswick Group LLP 020 7404 5959

Simon Sporborg

Oliver Hughes