SHARE BUYBACK PROGRAMME

For Immediate Release 04 March 2013

LXB RETAIL PROPERTIES PLC

(the "Company" or the "Group")

SHARE BUYBACK PROGRAMME

The Chairman's statement which accompanied the results announcement on 17 January 2013 included details of the forward sale of two of the Group's investment properties and negotiation of development finance, indicating that the two events have generated surplus cash not previously forecast in the Group's funding model. The announcement indicated that the Board would review the Group's cash requirements, and consider returning cash to shareholders through a purchase of its own ordinary shares ("Shares").

Accordingly the Board of the Company today announces its intention to commence a share buyback programme (the 'buyback programme') through its broker, Oriel Securities Limited, to act on its discretion to purchase Shares, on the Company's behalf subject to certain pre-set parameters, up to an aggregate cost of £25m.

Any Share purchases will be effected in accordance with the Company's general authority to buyback Shares as approved by shareholders at the Company's general meeting on 27 February 2013, the AIM Rules for Companies, (the "AIM rules") and the rules of the Channel Islands Stock Exchange (the "CISX Rules").

The maximum price which may be paid for each Share is an amount equal to 105% of the average middle market closing price for the 5 business days immediately preceding the date of the purchase.

In addition, given the limited liquidity in the Shares it is possible that, on a given day, the Company may buyback more than 50 per cent of the average daily volume of the preceding 20 business days.

Any shares purchased pursuant to the buyback programme will be cancelled and the purchase will be notified to a regulatory information service in accordance with the AIM Rules and the CISX Rules.

None of the directors intend to dispose of any of their shareholdings in the Company as part of the buyback programme. With the exception of one member of the Investment Manager's advisory team (who may sell up to 400,000 shares), no member of the Investment Manager's team intends to participate in the share buyback programme.

The directors consider that the buyback programme is an appropriate and the most cost efficient way to return this excess cash to shareholders, particularly since the amount involved is not significant relative to the Company's market capitalisation. In the event that further investment disposals should occur, with the result that a larger sum became available to be returned to shareholders then the directors would consider a more structured process, such as a tender offer.

The Board has reviewed the status of each of the Group's investment projects for any material developments since the summary provided to shareholders on 17 January 2013.

On a general level, the Board considers that it has provided a comprehensive overview of the status of its investment projects and of when shareholders may expect to see progress reflected in the net asset value per share. In terms of particular investments, for completeness, this announcement provides an update on any developments since 17 January 2013.

Banbury

The judicial review timetable has not yet been established but the Group has consulted leading counsel and been advised that it has a very robust position.

Gloucester

The development facility with Royal Bank of Scotland has now been signed and first development monies have been drawn.

Greenwich

Following the resolution to grant planning permission, for the Sainsbury's/M&S on 9 January 2013, the Greater London Authority has now carried out its review of the proposed development and confirmed that it has no objections. In addition the National Planning Casework Unit has confirmed that it will not be called in for a planning inquiry. The Group expects to sign the Section 106 agreement shortly and is confident that it will be able to secure development finance; it remains the intention to start on site by the middle of 2013.

Rushden

The date for the planning inquiry has been confirmed as 25 June 2013.

For further information please contact:

LXB Manager LLP Tel: 020 7432 7900

Tim Walton, CEOBrendan O'Grady, FD

Buchanan Tel: 020 7466 5000

Charles Ryland/Sophie McNulty