Statement re LMS Capital plc

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

FOR IMMEDIATE RELEASE

6 September 2011

Shareholders accounting for 35% of shares seek support for new strategy

Shareholders representing over 35% of LMS Capital plc's issued voting share capital note the announcement from LMS Capital plc (the "Company") today and confirm that they have approached the Board of the Company to discuss their proposals for a new return of cash strategy.

The shareholders include Withers Trust Corporation, Robert Rayne, the Chairman of the Company, certain members of his family and related trusts and other shareholders of the Company (together, the "Concert Party").

The Concert Party believes that an asset realisation strategy over an appropriate time period, with proceeds distributed to shareholders, is likely to deliver significantly greater value to shareholders in the short to medium term than the Company's current strategy.

In reaching this view, the Concert Party and Rothschild, its financial adviser, have considered, inter alia, the following:

·; The Company's shares closed at a 38% discount to net asset value on 5 September 2011, the last business day prior to the release of this announcement, and have averaged a 34% discount since demerger*;

·; The Concert Party considers it unlikely that this discount will be eliminated in the short or medium term;

·; Shareholders have not received any dividends from the Company since its demerger in 2006;

·; Liquidity in the Company's stock is very limited; and

·; The Company is expected to generate substantial cash from the Fund of Funds and the sale of Quoted and Fund investments; it intends to re-invest such cash in long-term private assets that are likely to trade at a discount and defer cash coming to shareholders for several years.

Representing the Concert Party, Robert Darwin, of Withers LLP, said:

"The Concert Party believes that LMS Capital is at a turning point in its investment life cycle. In the current environment the Concert Party believes that returning cash to fellow shareholders now will deliver greater value and certainty than the current strategy of reinvesting cash into long-term, illiquid, private assets, and that a new approach is in the best interests of all shareholders. In the coming days we will meet with shareholders on behalf of the Concert Party to explain, in more detail, its thinking. In the meantime, the Concert Party urges the Company to refrain from making new investments".

ENDS

* Current discount based on reported net asset value of 93p as at 30 June 2011 and a closing price of 57.5p as at 5 September 2011; source for average discount: Factset

Enquiries

Withers LLP (solicitors to the Concert Party) 020 7597 6000

Robert Darwin

N.M. Rothschild & Sons Limited ("Rothschild"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for the Concert Party and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than the Concert Party for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.