Update on realisations of investments

9 June 2011

                                LMS Capital plc                                

Sale of interests in quoted investments and private equity limited partnerships

LMS Capital plc ("the Company" or "LMS"), a listed private equity investment
company, today announces gross proceeds received and receivable of £45 million
from the sale of non-core quoted and third-party funds since the beginning of
the year.

The sale of legacy holdings and realisation of funds has been a key priority so
that we have the financial resources to acquire profitable and growing
companies. These realisations demonstrate further progress in the
implementation of this strategy.

The key elements are:

  * Listed Equity Divestment: We have sold our interest in the listed company
    ProStrakan ("PSK") for £23 million, a gain of £5 million (approximately 2
    pence per share) since the end of 2010, pursuant to the scheme whereby KHK
    acquired 100% of PSK. PSK was a company that we invested in when private
    and subsequently assisted with an IPO. We stood by the company during its
    lengthy drug approval process with the US FDA and when complete realised
    value from selling to a large strategic investor. Furthermore, we have
    begun to divest our stakes in other non-core listed stocks and, to date in
    2011, have realised in aggregate £6 million in gross proceeds.
   
  * Private Equity Funds Divestment: We have signed agreements for the sale of
    seven of our stakes in private equity funds located in the UK, US and
    Europe for gross consideration of £15.9 million in cash which represents
    98% of book value at 31 December 2010. The final proceeds will be adjusted
    for capital calls and distributions by the seven limited partnerships
    between year end and completion. These sales will also reduce the Company's
    commitments in respect of uncalled capital relating to these interests by £
    6.8 million; on a pro forma basis total uncalled commitments for the
    Company at the end of March 2011 therefore reduce from £34.1 million to £
    27.3 million.
   
All £ amounts are based on 31 March 2011 rates of exchange. The transfers of
the Company's interest in each of the limited partnerships are expected to
complete in the next three months.

Glenn Payne, Chief Executive of LMS, commented:

"These sales demonstrate the continued focus and successful execution of our
strategy as outlined last year. For investors, our focus continues to be on
providing a quoted vehicle to own highly attractive but smaller unquoted
companies that we can help achieve accelerated growth. With these realisations
we confirm that we are doing what we have stated: we will be redeploying this
capital in profitable and growing companies to join the portfolio alongside the
likes of Updata, Apogee and Nationwide. Our acquisition efforts are ongoing
both for earnings accretive new portfolio holdings and add-on investments."

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 020 7588 2828

Michael Wentworth-Stanley

Brunswick Group LLP 020 7404 5959

Simon Sporborg

Leonora Burtenshaw

Notes to Editors

LMS Capital is an investment company with experience in private equity and
development capital investment. Our objective is to deliver superior returns
for shareholders through ownership of controlling stakes or positions of
influence in profitable and growing companies run by experienced managers
operating in sectors we know and where we expect to be able to add value. We
aim to own companies and make follow-on investments in companies that will
produce profits that contribute to an increasingly valuable and profitable LMS
Capital. Our focus is on investing in high quality management teams and
companies at favourable prices. 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.

www.lmscapital.com

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