Expansion of Salford JV

AIM: SGM

Sigma Capital Group plc

("Sigma")

Re: Salford City Council Higher Broughton regeneration programme

Fourth phase of existing programme commenced

Sigma, the property and specialist asset management group, is pleased to announce that its regeneration subsidiary, Sigma InPartnership, has commenced the fourth phase of its regeneration programme with Salford City Council, via its partnership, The Higher Broughton Partnership. The fourth phase of the regeneration programme relates to the delivery of a new health centre and retail units in Newbury Place, Higher Broughton, Salford.

In commencing the fourth phase, The Higher Broughton Partnership (a limited partnership between Salford City Council, Sigma InPartnership and Royal Bank of Scotland) has exchanged contracts ("Development Contract") with a specialist medical facility developer for the development of a £9m 30,000sq.ft. new facility providing a GP surgery, dental practice, pharmacy, optician and a major new convenience food store, pre-let to a leading UK supermarket group.

The Development Contract is conditional on detailed planning consent for the facility from Salford City Council. Currently, it is anticipated that completion of the Development Contract will take place in late Spring 2012. Contract completion will trigger significant profit to the Higher Broughton Partnership and consequently a share of that profit to Sigma.

To date, Sigma InPartnership via The Higher Broughton Partnership has been involved with the delivery of 250 new housing units, a new community facility and the refurbishment of two local schools. It is currently working on the detailed planning of the next 80 residential homes and expects a detailed planning application to be submitted by mid January 2012. Countryside Properties Limited, the specialist housing developer, has already been selected as preferred partner for the project.

Sigma Inpartnership undertakes large scale property-related regeneration projects forming partnerships with the public sector lasting up to 20 years. In addition to its well-established partnership with Salford City Council, Sigma Inpartnership, has long term partnerships with Liverpool City Council and Solihull Metropolitan Borough Council City Council. The total development value of the opportunities held within its existing partnerships is now estimated at well over £2 billion.

Graham Barnet, Chief Executive of Sigma, commented,

"We are delighted to be commencing the fourth phase of the regeneration programme with Salford City Council, which covers the delivery of 30,000 sq ft of healthcare facilities and retail units in Newbury Place, Higher Broughton Salford. It is further proof of the successful working relationship that Sigma InPartnership has established with the Salford City Council and benefits of the partnership approach.

Key to starting the fourth phase was finding a suitable specialist medical facility developer. With our developer now in place, subject to planning consent, we expect the work on the facility to begin in the late Spring of 2012."

www.sigmacapital.co.uk

About The Higher Broughton Partnership

The Higher Broughton Partnership (the "Partnership") is a limited partnership formed in 2004 between Salford City Council, Royal Bank of Scotland and Sigma Inpartnership.

The Higher Broughton Partnership holds an option over approximately 30 acres of land in Higher Broughton in Salford, some 1.5 miles from Manchester city centre. The land in the Partnership can be drawn down and developed by Sigma Inpartnership or the Partnership at a fixed price per acre. Sigma Inpartnership manages all the development work and is paid a management fee on a project by project basis. Development profits and enhanced land values are shared among the partners on a deal by deal basis.

The Partnership is seven years into a 12-year programme of development.

About Sigma Inpartnership

Founded in 2001 and operating from offices in Manchester and Birmingham, Sigma Inpartnership was established as an investment led property-related regeneration company, specialising in the creation of long term, asset-backed partnerships with the public sector. Sigma Inpartnership has secured three partnerships, with Liverpool City Council, Solihull Metropolitan Borough Council and Salford City Council, each ranging from 10 to 20 years' duration. The partnerships hold long term option arrangements with the respective local authorities for a mix of residential, commercial, education and health opportunities. In total, the partnerships provide for the delivery of over 10,000 new homes, a significant number of new retail centres, health/medical centres, schools and mix of retail/ leisure facilities.

The total development value of the opportunities held within the three partnerships is estimated at well over £2 billion.