Update on European Care Group

17 April 2014

 Public Service Properties Investments Limited

("PSPI" or, with its subsidiaries, the "PSPI Group")

Update in relation to the European Care Group ("ECG")

PSPI (AIM: PSPI), the specialist European real estate investment and financing company, has been informed that European Care & Lifestyles (UK) Limited ("ECL") was placed in administration on 16 April 2014.

PSPI Group companies are (i) the landlord and business licensor of nine care facilities in Merseyside and one in Scotland which were let to ECG companies in 2004 on 35-year leases, and the licence holder of the domiciliary care business operated by ECG, and, since the sale of certain PSPI Group properties to ECG in 2012, (ii) a minority shareholder in ECG and (iii) a subordinated loan note creditor of ECG.

The PSPI Group has carried (ii) and (iii) above at a de minimis value of £2,000 in the PSPI Group's consolidated balance sheet since 2012. In respect of (i) above, PSPI is not aware of any notices of intention to appoint administrators in respect of ECG entities which are tenants and licensees of PSPI Group owned properties. Monthly rents and business licence fees with respect to those facilities were received by the PSPI Group in full in the normal course of business on 15 April 2014.

PSPI is currently considering the implications of this development and its impact on the PSPI Group and will, if appropriate, make a further announcement in due course.

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