Re Trading Update

19 February 2010

Public Service Properties Investments Limited

("PSPI" or "the Company")

Trading Update for the Year to 31 December 2009

PSPI (AIM: PSPI), the specialist European real estate investment and financing company, announces a trading update for its financial year to 31 December 2009.

The Company continues to perform in line with the Board's expectations, maintaining a fully-let investment property portfolio, primarily let on long term leases to a variety of tenants in multiple jurisdictions.

Between 30 June 2009 and 31 December 2009 the value of the investment properties in constant currency has shown a decrease of 0.5%, which, taken with the valuation movements reported in the first half of the year, reflects an overall reduction of 0.9% in constant currency for the full year ended 31 December 2009.

The UK investment property portfolio, which represented 68% of the Group's total investment property portfolio at 31 December 2009, increased in value by £5.9 million or 3.6% during 2009. The increase primarily reflected the addition of £6.8 million of value attributable to the expanded facilities at two of the Company's properties in South Yorkshire where a major refurbishment was completed with bed capacity increasing by more than 50%. The valuation of these properties at 31 December 2009 reflects a fair value gain of 33% over the cost of the gross capital expenditure of the project, following an increase in annual rent equivalent to 8% of that expenditure. The value of the balance of the UK investment property portfolio declined by 0.6% during the course of 2009, although rental income increased across the entire portfolio by the 1.5% minimum provided in the leases, despite negative RPI inflation during most of 2009. The average capitalisation rate¹ for the UK investment portfolio was unchanged at 6.30%. The Company plans to extend its capital expenditure programme to increase bed capacity at a number of other properties in its UK investment property portfolio in the short to medium term.

The value of the Company's German investment property portfolio, which represented 20% of the total portfolio value at 31 December 2009, declined by 2.2% in constant currency during the course of the year. The average capitalisation rate for the German portfolio was 6.75%.

The US and Swiss property portfolios, each representing 6% of the total investment property portfolio at 31 December 2009, respectively, declined in value by 2.1% and 6.9% in constant currency during the year.

As a result of the challenging conditions in the credit markets, there has been a scarcity of new senior debt on acceptable terms available to companies such as PSPI. Notwithstanding this fact, the Company successfully raised €8 million in five year senior debt during 2009, and is currently in negotiations to obtain additional senior debt secured against a portion of the Company's German investment property portfolio. Any such additional senior debt would increase the Company's ability to expand its asset base, whilst maintaining a conservative loan to value ratio.

The Company expects to announce its full year results for the year ended 31 December 2009 in April 2010.

Patrick Hall

Chairman

¹ Capitalisation rate is represented by the net rental income receivable divided by the market value of the properties from which the rental income is derived

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