Further update

7 July 2016

Public Service Properties Investments Limited (the "Company")

Further update

The board of PSPI notes the movement in the share price of the Company today and re-confirms that with effect from 7 July 2016, the Company has compulsorily redeemed 22,531,399 ordinary shares of $0.01 each in the Company ("Ordinary Shares") for a total consideration of £11,491,013.50 ("Compulsory Partial Redemption"). The resultant issued share capital of the Company comprises 227,655 Ordinary Shares.

As a result of the sale of its remaining properties (the "Disposal") which was announced on 10 March 2016 (details of which are set out below) and completed on 22 April 2016, which constituted a fundamental change of business pursuant to Rule 15 and Note 5.6 for Investing Companies of the AIM Rules for Companies, the Company has 12 months from that date to implement its investing policy, failing which trading in the Company's shares on AIM will be suspended.

Following the Disposal and the Compulsory Partial Redemption, a significant majority of the Company's remaining assets comprise cash of approximately £1.5 million which, after deducting net current liabilities of £0.3 million, is equivalent to an unaudited net asset value ("NAV") as of today of approximately 527p per share, which the Board proposes to return to shareholders in due course. A significant majority of the Company's cash is in sterling; hence, the Company does not expect to incur any significant impact from the movement in foreign exchange rates, most notably between sterling and the Euro.

The unaudited NAV assumes that there are no claims made against the warranties included in sale transaction documentation relating to the disposal of the Company's assets and businesses during the last two years and that there will be no significant unidentified costs between now and the final return of capital to shareholders.

While the Company expects that it will be able to complete a final return of capital before the end of the first quarter of 2017, it is exploring ways in which it can accelerate this process.

 The text of the Company's announcement dated 10 March 2016 is set out below: -

"PSPI (AIM: PSPI), the specialist European real estate investment and financing company is pleased to announce that it has exchanged conditional contracts to dispose of its three remaining properties leased to the Marseille Kliniken Group ("MK") for an aggregate gross price of €10.0 million. The sales were executed with subsidiaries of MK, were concluded under German law and are expected to close within six weeks on completion of re-registration of the properties in the appropriate land registry and after registration of charges in favour of the purchasers' lender. The sales were concluded at a discount of 2.0 per cent. to the independent net value of the assets used in preparing the Company's unaudited consolidated results as at 30 June 2015.

Approximately €4.1 million of the sale proceeds will be used to repay senior debt secured against the three properties and approximately €0.2 million will be used to settle pre-payment penalties under an interest rate swap agreement with the senior lender. The Group will apply the net sale proceeds to settle transaction costs (estimated at €0.4 million) with the balance to be used for general working capital purposes. The transactions will complete the sale of the Company's remaining investment properties held in all jurisdictions."

For further information please visit www.pspiltd.com or call:

Dr. D. Srinivas Tom GriffithsRalph Beney Henry Willcocks

RP&C International Stockdale Securities (Asset Manager) (Nomad and Broker)020 7766 7000 020 7601 6100