Interim Management Statement

JOHN LAING INFRASTRUCTURE FUND

INTERIM MANAGEMENT STATEMENT

John Laing Infrastructure Fund (JLIF), the international PPP/PFI infrastructure investment company, today announces its Interim Management Statement (IMS) for the period 1 July 20111 to 8 November 2011.

Highlights

·; Portfolio Value rose to £290.0m at the 30 September 2011 showing an underlying growth of 9.28%2 since 1 January 2011 

·; Over the quarter from 30 June to 30 September 2011, the Portfolio Value3 showed an underlying growth of 2.0% or, 1.1% (including exchange movements)

·; Net Asset Value (NAV) was £308.5 million4 as at 30 September 2011

·; NAV per share increased from 105.9 pence to 106.6 pence cum div (103.65 pence ex-div), as at 30 September 2011

·; Successfully raised £130.7 million through an issue of shares on 28 October 2011

o Agreed acquisition of 9 assets plus an additional stake in an existing asset from the John Laing Group (John Laing), of which 2 assets completed on 7 November 2011

o Acquired 50% shareholding in Forth Valley Hospital from Commonwealth Bank of Australia for a total value of £22.8 million

·; Interim dividend of 3.0 pence per share paid in line with expectations

·; Increased JLIF's Revolving Credit Facility with RBS from £25 million to £60 million

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Paul Lester, Chairman of the John Laing Infrastructure Fund, said:

"JLIF has again performed strongly, with the underlying portfolio valuation increasing 2.0% over the quarter. We continue to see numerous value accretive opportunities in the secondary market, and have the firepower in place to take advantage of opportunities as they arise. With the UK Government continuing to stress the importance of infrastructure expenditure for the health of the economy and Governments across Europe and Canada welcoming PFI/PPP as a method of procurement to upgrade infrastructure, the outlook for JLIF and the sector remains positive."

David Marshall and Andrew Charlesworth, Directors of John Laing Capital Management Limited (JLCM), Investment Advisor to JLIF, said:

"The second half of 2011 has been a highly active period for JLIF, acquiring our first third party asset in September, increasing the fund's revolving credit facility and raising £130.7 million by way of a capital raise. This was JLIF's first full capital raise since launch 11 months ago, further demonstrating the sustainability and robustness of the JLIF model. Coupled with the share issue in April, this takes the total capital raised in 2011 to £158.1m and over the last 12 months to £428.1m.

The funds, which were raised from both new and existing shareholders, are being used to purchase 9 assets from John Laing and an additional stake in Abbotsford Hospital as well as to repay the debt borrowed to finance the acquisition of Forth Valley Royal Hospital. The remaining funds will be used to finance the acquisition of another third party portfolio.

The acquisition of Forth Valley demonstrates our ability to identify and acquire third party assets that provide accretive value to investors. As a low risk, availability based asset, Forth Valley is well aligned with JLIF's Investment Policy and fits well in to the fund's growing Portfolio.

We look forward to building on this strong first half performance and continuing JLIF's sustainable growth."

Capital Raising

JLIF successfully raised £130.7 million through a share issue, issuing 124.4 million shares on 28 October 2011. The proceeds from this capital raise are being used to fund the acquisition of 9 new assets from John Laing and an additional stake in Abbotsford Hospital and repaying the commitment for the acquisition of Forth Valley Royal Hospital. The total number of ordinary shares in issue following the capital raise and shares issued for the scrip dividend is 422.2 million, and market capitalisation at 8 November 2011 was £453.9 million. JLIF are currently on the reserve list for the FTSE 250 review in December 2011.

Dividends

JLIF paid its interim dividend of 3.0 pence per share on 21 October 2011 in line with expectations set out in the October 2010 Prospectus and subsequently the 2010 Annual Report. JLIF anticipates its next dividend to be paid in April 2012 in line with expectations. JLIF remains confident that its dividend projections are comfortably cash covered in the short term.

Gearing

JLIF increased its Revolving Credit Facility with Royal Bank of Scotland to £60 million from £25 million. This has afforded JLIF added financial resource to take advantage of opportunities that present themselves in the market. As at the date of this Interim Management Statement, JLIF does not have any outstanding debt drawn under the Facility.

As stated in the October 2010 Prospectus, JLIF has the ability to raise debt of up to 25% of the Fund's asset value. The Facility is currently available for JLIF utilisation and will be used primarily to fund third party acquisitions.

Portfolio Performance

The Portfolio has increased in value by £3.5 million to £290.0 million during the period 30 June 2011 to 30 September 2011. Against a rebased 30 June 2011 Portfolio Value, after taking account of distributions received from projects in the period and acquisitions, the Portfolio Value has increased by £3.2 million or 1.1%, net of a decrease in value of £2.5 million due to exchange rate depreciation. The exchange rate depreciation largely occurred on the Canadian dollar/£ rate during the end of September 2011, and was partially offset by the Euro/£ rate. As at 31 October 2011 the Canadian dollar exchange rate was 1.5982 which reversed some of this trend. 

The NAV per share has increased from 105.9 pence at 30 June 2011 to 106.6 pence (cum-div, 103.6 pence ex-div) at 30 September 2011 primarily as a result of the increase in the Portfolio Value. The 3.0 pence dividend was approved in August 2011 and paid on 21 October 2011.

The effect on the Group's financial position of the capital raise and acquisitions is a marginal decrease in NAV per share from 103.6 pence to 103.3 pence due to costs incurred in the issue of new shares and acquisition of assets. Cash flows from the portfolio continue in line with the projections made by the Investment Advisor based on the underlying project models.

Pipeline

JLIF intends to make further acquisitions from John Laing over the next 12 months and are actively considering third party opportunities. JLCM, on behalf of JLIF, are keen to seek new assets that are in line with JLIF's strict investment criteria. It is important to ensure that any assets acquired are at the right price, suit JLIF's risk profile and are aligned with the existing Portfolio. There have been a number of other third party opportunities, which JLCM have reviewed and declined on the basis that they do not meet the criteria. There are other opportunities that meet JLIF's requirements, which continue to be actively reviewed.

Outlook

The outlook for JLIF and PFI/PPP infrastructure investment companies remains positive. With interest rates remaining low, inflation rates high and the outlook for the UK and global economies still uncertain, there is strong demand for infrastructure investment stocks, given their stable, low risk, predictable yield and partial inflation protection.

The non-primary infrastructure market in the UK is improving. The Government has decided to resume many of the transactions that had been put on hold. Projects are coming to market and deals are progressing. The market in Europe and the Americas is continuing to flourish. Governments in these areas are welcoming PFI/PPP as a method of procurement to upgrade their infrastructure assets. JLCM is actively analysing these areas for current opportunities and future target acquisitions.

JLCM believes there will be further acquisition opportunities over the next couple of years, as primary developers finish asset construction and wish to recycle their equity to bid for new infrastructure projects. This should maintain and improve the liquidity in the infrastructure space.

Note:

This IMS aims to give an indication of material events and transactions that have taken place during the period from 1 July 2011 to 8 November 2011 and their impact on the financial position of the Investment group. These indications reflect JLCM's and the Board's current views. They are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within the portfolio of JLIF.

This IMS contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and JLIF's actions to differ materially from those expressed or implied in the forward-looking statements.

This IMS has been prepared solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules and this IMS should not be relied on by any other party or for any other purpose.

David Marshall Tel: + 44 (0) 20 7901 3326

Email: [email protected]

Andrew Charlesworth

Email: [email protected]

RLM Finsbury Tel: + 44 (0) 20 7251 3801

Faeth Birch

Philip Walters