Refinancing of Debt

15thAugust 2011

Public Service Properties Investments Limited

("the Company" or the "Group")

Notice of Refinancing of Debt

Public Service Properties Investments Limited (AIM: PSPI) is pleased to announce that the $23 million senior guaranteed debt associated with the Group's holding of 140 US Post Offices has been successfully refinanced with a new $19 million senior debt facility (a loan to value ratio of 80 per cent.) for a term of 10 years at an initial interest rate of 4.875 % per annum. The new financing, in contrast to the old facility, is non-recourse to PSPI and leaves the Group with maximum flexibility as to the longer term strategy for these assets.

In the context of the refinancing, PSPI has raised a bridge loan of $4.5 million (the "Loan") from Manchester Securities Corp, an affiliate of Elliott Associates, L.P. ("Elliott"). The Loan carries interest at the rate of 6% per annum and is to be repaid before 30 December 2011 from proceeds of other Group financings currently being finalised.

As Elliott is a substantial shareholder in the Company, the Loan is deemed to be a related party transaction in accordance with Rule 13 of the AIM Rules for Companies. The independent directors of the Company (being all of the directors with the exception of Jonas Rydell), having consulted with the Company's Nominated Adviser, consider that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries: