Result of Tender Offer

Leo Capital Plc
14 July 2006



14 July 2006

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

                   RESULTS OF TENDER OFFER AND TRADING UPDATE

Leo Capital is pleased to announce the results of the recent Tender Offer to
shareholders and is also providing an update on current trading. . Terms used in
this announcement shall have the same meaning as those in the circular to
shareholders dated 19 June 2006 ('the Circular').

Results of Tender Offer

At the Extraordinary General Meeting of the Company held yesterday, 13 July
2006, Shareholders approved the Tender Offer by the Company to purchase shares
of the Company up to a maximum value of £35 million on the terms set out in the
Circular.  The Tender Offer closed on 11 July 2006.

The results of the Tender Offer were as follows:

  • 42,572,285 Shares were validly tendered pursuant to the Tender Offer.
  
  • The Tender NAV per Share is 88.79 pence.

  • On the basis of the Tender NAV per Share, with this quantum of valid
    tenders, the Tender Offer is not fully subscribed and all tenders can
    therefore be satisfied in full.

  • The Strike Price for the Tender Offer (calculated as set out in the
    Circular) is therefore 71.03 pence per Share, representing a 20% discount to
    the Tender NAV per Share of 88.79 pence.

  • Accordingly 42,572,285 Shares validly tendered will be purchased for a
    total cash consideration of £30.2 million. It is anticipated that the
    consideration for the tendered Shares to be purchased will be sent on 19
    July 2006.

  • Following the completion of the Tender Offer (and cancellation of those
    Shares which have been repurchased) a total of 286,429,228 Shares will
    remain in issue.

  • The interests of the Concert Party will be equal to 43.57 % of the issued
    share capital of the Company immediately following completion of the Tender
    Offer.

Current trading

The unaudited net asset value per ordinary share of the Company at 30 June 2006
was 88 pence (31 March 2006 pro-forma - 90 pence).  The figure for 30 June
reflects the impact of the weakening of the US dollar against sterling since
March on the value of our dollar based investments.

If the results of the Tender Offer set out above are reflected in the
calculation as at 30 June, the net asset value per share would be 90 pence.



Highlights:

o        The IPO of Bridgewell Securities in June resulted in the value of our
         holding increasing to £4.5 million;

o        In June we received cash of £0.7 million for part of our interest in
         Monogram Biosciences;

o        Following the management buyout of Vue Entertainment in June, we
         received a distribution of £2 million;

o        The fall in the share price of ProStrakan Group plc since 31 March 2006
         has reduced the value of our holding by £3.4 million. This company
         yesterday announced details of a licence and collaboration agreement 
         with Amgen to research, develop and commercialise certain of 
         ProStrakan's products. It has also undertaken a share placing to 
         provide additional working capital;

o        Deal flow has increased since the demerger and we have a number of
         substantial transactions under consideration.

o        A number of our portfolio companies are also considering potentially
         accretive acquisitions.

Commenting on the results of the Tender Offer and current trading, Robert Rayne,
Chief Executive Officer of the Company, said: 'Following the successful demerger
and admission of the Company to AIM on 12 June, we are pleased to report that
the Tender Offer has achieved its objective of providing an opportunity for
shareholders who wish to realise their investment in the Company to sell their
shares. Shareholders who have retained their shares have the benefit of an
uplift in net asset value per share.

We continue to see significant investment opportunities in our chosen sectors as
well as the potential for realisations from the current portfolio. The directors
remain confident that the current investments will contribute positively to the
Company's strategy of medium to long-term growth in shareholder value.'



For further information please contact:
Leo Capital plc                                               Brunswick
Robert Rayne, CEO                                             Simon Sporborg
Tony Sweet, CFO                                               Nina Coad
                                                              Alex Tweed
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 hold 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.

Website            www.leocapitalplc.com


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