Alpha Group International Regulatory News (ALPH)

18 May 2011

Alpha Pyrenees Trust Limited (the "Trust")

Interim Management Statement

Alpha Pyrenees Trust Limited today publishes its interim management statement for the quarter ending 31 March 2011 and the period up until the date of this announcement. The information contained herein has not been audited.

KEY POINTS

·; DIVIDEND OF 0.9 PENCE PER SHARE DECLARED FOR THE FIRST QUARTER 2011

·; VALUATIONS AND OUTLOOK IMPROVING IN FRANCE (91% OF THE TOTAL PORTFOLIO)

·; PORTFOLIO VALUE INCREASED BY 0.1% IN THE QUARTER

·; PORTFOLIO VALUATION YIELD OF 8.2% AT 31 MARCH 2011

·; ADJUSTED NAV* 31.9p PER SHARE AS AT 31 MARCH 2011

·; LEASES ARE SUBJECT TO ANNUAL INDEXATION; INDEXATION TREND IMPROVING

·; 85% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS

·; FURTHER PROGRESS ON LETTINGS AND LEASE EXTENSIONS IN FRANCE AND SPAIN

·; WEIGHTED AVERAGE LEASE LENGTH OF 7.0 YEARS TO EXPIRY AND 3.6 YEARS TO NEXT BREAK

·; NO LOAN TO VALUE COVENANT TESTS UNTIL FEBRUARY 2014

·; 99% OF BORROWINGS FIXED AT A WEIGHTED AVERAGE INTEREST RATE OF 5.26% PER ANNUM TO MATURITY IN FEBRUARY 2015

DIVIDEND

The Board is declaring an unchanged dividend of 0.9 pence per share for the first quarter of 2011. The dividend will be paid on 20 June 2011, with an associated ex-dividend date of 25 May 2011 and record date of 27 May 2011. No scrip alternative will be offered for this dividend.

REVALUATION AND NET ASSET VALUE ("NAV")

The Trust's investment portfolio was valued at £260.6m (€296.3m) on 31 March 2011 giving an average valuation yield across the portfolio of 8.2% (French portfolio 8.2% and the Spanish portfolio 8.5%). On a Euro like-for-like basis the French portfolio increased in value by 0.1% and the Spanish portfolio increased in value by 0.2% from 31 December 2010 giving an overall increase in valuation of 0.1% for the period.

As at 31 March 2011 the adjusted NAV* is 31.9p per share. The decrease in adjusted NAV from 31 December 2010 (34.0p per share) is primarily due to net currency losses on the Trust's hedges.

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 *Adjusted NAV - unaudited, after adjustments for the unrealised mark-to-market of the interest component of the currency swap, interest rate swap derivatives and deferred taxation provisions.

FINANCING

The Trust's total borrowings of £214m (€243.3m) and portfolio value of £260.6m (€296.3m) gives a net leverage after cash of 76.5% as at 31 March 2011.

All borrowings are long term with maturity in February 2015 and 99% of borrowings have interest rates that are fixed to maturity at a weighted average rate of 5.26% per annum. There are no Loan to Value ("LTV") covenant tests until February 2014, at which point the Trust's LTV should not exceed 87.5% on a country portfolio basis (with the exception of the Alcatel-Lucent property where it should not exceed 85%). The French (€221m) and Spanish (€22.2m) borrowings are independent and are not cross-collateralised.

PROPERTY UPDATE

The Trust's Investment Manager continues to pursue the goals of:

·; preserving existing lease income,

·; extending lease terms, and

·; letting vacant units within the portfolio.

FRANCE

Two new leases were signed on the French properties and six leases were extended.

Fresnes - a lease extension has been signed with the main tenant, Exapaq, part of the La Poste Group, on 5,230 square metres of warehouse space. The fixed length of their lease was extended by 7 years by signing a new 9 year lease without breaks with effect from 1 January 2011 at a market rent.

Roissy - OCP Repartition extended their lease on a 4,735 square metre logistics unit until June 2014.

Goussainville - a new 3/6/9 year lease from 1 March 2011 has been signed with Cabinet Rabec on 385 square metres of vacant office space.

Vitry - a new 6/9 year lease from 1 April 2011 has been signed with GFF on a 330 square metre vacant light industrial unit and Mediapost and Stanbridge extended their respective leases until March 2014 on 895 square metre and 500 square metre light industrial units.

Ivry - Metallerie Marie extended their lease until April 2014 on an 835 square metre light industrial unit.

Nimes - France Telecom extended their lease until February 2014 on a 215 square metre retail unit.

SPAIN

Four new leases were signed on the Spanish properties; three retail units at Ecija totaling 140 square metres and one at Alcala on a 40 square metre retail unit.

Ecija - Balmont and Imagina Sport extended leases until 2012 on their 115 square metre and 100 square metre retail units.

Overall the portfolio enjoys high levels of occupancy with rental income comprising 90% of potential total income and vacancy representing 10%.

RENTAL INDEXATION

The trend in rental indexation continues to improve. In the fourth quarter of 2010, the INSEE Construction Cost Index ("ICC"), applicable to leases in France, stood at 1,533 versus 1,520 the previous quarter. The annual growth at the fourth quarter of 2010 was 1.73%, versus a 1.20% annual growth at the third quarter of 2010 (1.27% as at Q2 2010 and 0.33% as at Q1 2010).

The Spanish Consumer Price Index, applicable to leases in Spain, was running at an annualised rate of increase of 3.6% as at the end of March 2011.

For further information:

Dick Kingston, Chairman, Alpha Pyrenees Trust Limited 01481 735 541

Paul Cable, Fund Manager, Alpha Real Capital LLP 020 7268 0300

For more information on the Company, please visit www.alphapyreneestrust.com.

FORWARD-LOOKING STATEMENTS

This interim management statement contains forward-looking statements which are inherently subject

to risks and uncertainties because they relate to events and depend upon circumstances that will

occur in the future. There are a number of factors that could cause actual results to differ materially

from those expressed or implied by such forward-looking statements. Forward-looking statements are

based on the Board's current view and information known to them at the date of this statement. The

Board does not make any undertaking to update or revise any forward-looking statements, whether as

a result of new information, future events or otherwise. Nothing in this interim management statement

should be construed as a profit forecast.