Proposed Scrip Dividend Alternative

NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICITON WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

Public Service Properties Investments Limited

("PSPI" or the "Company")

Proposed Scrip Dividend Alternative - Reference Share Price

In its interim results announcement released on 30 September 2011, PSPI (AIM: PSPI), the specialist European care home real estate investment and financing company, announced that its Board of Directors had resolved to introduce a scrip dividend alternative starting with the interim dividend for the 6 months ended 30 June 2011, subject to shareholder approval.

Further to that announcement, the Company announces that it intends to post a circular to its shareholders on or about 21 October 2011 to seek shareholders' approval at an extraordinary general meeting of the Company to be convened on or about 9 November 2011 to authorise the Directors to exercise the powers conferred on them by the Company's Articles of Association to offer shareholders the opportunity to take new ordinary shares of US$0.01 each, credited as fully paid, in lieu of cash dividends, by participating in the proposed scrip dividend alternative. The availability of the proposed scrip dividend alternative is conditional (inter alia) on shareholder approval at the extraordinary general meeting. In relation to the interim dividend for 2011, the price of a new ordinary share under the proposed scrip dividend alternative will be set at 63.4 pence. This is the average of the Company's middle market closing price for the five consecutive dealing days commencing on the ex-dividend date of 12 October 2011.

Following receipt of the circular, those shareholders and depositary interest holders wishing to participate in the proposed scrip dividend alternative should follow the instructions set out in the circular for making an election. To participate in the proposed scrip dividend alternative in respect of the 2011 interim dividend, elections must be received (in accordance with the terms to be set out in the circular) by not later than 5.00p.m. on 8 November 2011..

For further information, please visit www.pspiltd.com or contact:

This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to acquire any securities to any person, nor shall there be any sale, issuance or transfer of securities of the Company in any jurisdiction in contravention of applicable law or regulation. Neither this announcement (nor any part of it), or the fact of its distribution, shall form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract or commitment whatsoever with respect to the proposed scrip dividend alternative or otherwise.

The availability of the proposed scrip dividend alternative to persons who are not resident in the UK may be affected by the laws of the relevant jurisdictions in which they are located. Persons who are not resident in the UK should inform themselves of, and observe, any applicable requirements.

The shares of the Company (including depositary interests relating to such shares) have not been, and will not be, registered under the US Securities Act of 1933 (the "US Securities Act"), as amended and may not be offered or sold within the United States, except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act. Any new shares (and new depositary interests) to be issued pursuant to the proposed scrip dividend alternative will be offered outside the United States in reliance on Regulation S of the US Securities Act