Alpha Group International Regulatory News (ALPH)

15 November 2012

Alpha Pyrenees Trust Limited (the "Trust"or the "Company")

Interim Management Statement

Alpha Pyrenees Trust Limited today publishes its interim management statement for the quarter ending 30 September 2012 and the period up until the date of this announcement. The information contained herein has not been audited.

KEY POINTS

·; DIVIDEND OF 0.6 PENCE PER SHARE DECLARED FOR THE THIRD QUARTER 2012

·; ADJUSTED NAV* 38.1 PENCE PER SHARE AS AT 30 SEPTEMBER 2012 (30 JUNE 2012: 37.2 PENCE PER SHARE)

·; 84% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS; 91% OF THE TRUST'S PORTFOLIO BY VALUE IS IN FRANCE AND 83% IS IN THE PARIS REGION

·; WEIGHTED AVERAGE LEASE LENGTH IS 8.4 YEARS TO EXPIRY AND 4.4 YEARS TO NEXT BREAK

·; LEASES RENTALS ARE SUBJECT TO ANNUAL INDEXATION WHICH REMAINS POSITIVE FOR FRANCE AND SPAIN

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

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

·; EXTENSION OF MANAGEMENT AGREEMENT

DIVIDEND

The Trust's policy is to broadly align the dividend with adjusted earnings and monitor the level of dividend each quarter, so as to maximise the Trust's ability to take advantage of value-adding opportunities including income-enhancing investment opportunities in the portfolio. With this in mind, the Board has taken into consideration the current market conditions, progress on leasing and other initiatives that are being pursued and has maintained the dividend for the third quarter to 30 September 2012.

The Board is declaring a dividend of 0.6 pence per share for the third quarter of 2012 that will be payable on 7 January 2013, with an associated ex-dividend date of 5 December 2012 and record date of 7 December 2012. This brings the total dividend for the period from 1 January to 30 September 2012 to 1.8 pence per share. No scrip alternative will be offered for this dividend.

VALUATION AND NET ASSET VALUE ("NAV")

The Trust's investment portfolio was valued on 30 June 2012 at €304.3m (£242.1m at 30 September 2012 exchange rate) giving an average valuation yield across the portfolio of 8.2% (French portfolio 8.2% and Spanish portfolio 8.5%). The next independent revaluation will take place as at 31 December 2012.

As at 30 September 2012 the adjusted NAV* is 38.1 pence per share. The increase in adjusted NAV from 30 June 2012 (37.2 pence per share) is due mainly to net movements on currency hedges.

*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 £193.2m (€242.8m) and portfolio value of £242.1m (€304.3m) gives a net leverage after cash of 74.7% as at 30 September 2012.

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. The French (€221.1m) and Spanish (€21.7m) borrowings are independent and are not cross-collateralised.

PROPERTY UPDATE

The Trust's Investment Manager has continued to concentrate on active asset management and property management initiatives within the portfolio, including value added investment, to secure the Trust's income and we are pleased to report the following progress on these fronts since 30 June 2012.

The Trust has completed its upgrading works at Athis Mons, in particular to the offices for the new tenant, Furnotel, who have themselves completed their bespoke workshop area. The lease for the 11,380 square metres of logistics and office space commenced in August 2012.

As reported at the mid-year, UFCV signed a new lease on 300 square metres of offices at Mulhouse; Sofraled signed a new lease on 200 square metres of offices at Goussainville; Princelandia signed a new lease on a 250 square metre retail unit and Confecciones el Rubio extended the lease on their 600 square metre retail unit, both at Alcala.

In addition to the above, new leases, re-gearings and lease extensions, covering approximately 1,060 square metres, have been completed since the half year report as detailed below.

FRANCE

Vitry - a re-gearing was signed with Venticom on a 360 square metre light industrial unit, extending their lease to August 2015.

Goussainville - existing tenant Durag extended their lease until February 2015 on their 170 square metre office unit.

SPAIN

Ecija - new leases were signed with a caterer and a novelties and gifts retailer on two small commercial units totalling 100 square metres. Two existing leases to the sports retailers, Balmont and Imagina, were extended to December 2013 on units of 100 and 260 square metres respectively.

Alcala - a new 3 year lease was signed on a 70 square metre retail unit to a café operator, La Calita, from September 2012.

GENERAL

The Investment Manager remains vigilant to ensuring service charges are spent effectively, the annual level of property costs is closely monitored and additional sources of income are identified. With this in mind, a short term lease with Vodafone for a phone mast at the Trust's Cordoba property was converted to a fixed lease commitment until October 2014.

The Trust's portfolio has an overall level of average occupancy of 87%, measured by rental income as a percentage of potential total income, with 84% of the portfolio income coming from Grade A tenants and a weighted average lease length of 8.4 years to expiry and 4.4 years to next break.

RENTAL INDEXATION

The INSEE Construction Cost Index ("ICC"), applicable to the Trust's leases in France, has shown annualised growth for the last ten published quarters and the annual indexation base as at Q2 2012, the latest published, stood at 4.6% following an annualised growth rate of 4.0% as at Q1 2012.

The Spanish Consumer Price Index, applicable to the Trust's leases in Spain, has shown a marked increase since mid-year and was running at an annualised rate of increase of 3.4% as at the end of September 2012 (1.9% as at the end of June 2012).

EXTENSION OF MANAGEMENT AGREEMENT

The Trust has extended its management agreement with its Investment Manager for a further term.

The key terms of the management agreement are as follows:

The Trust and the Investment Manager have extended the current management agreement from the expiry of the original eight year term on 29 November 2013 pursuant to which the Trust appoints the Investment Manager to provide advisory services to the Trust and potentially other members of its corporate group. The term will continue until terminated by either the Trust or the Investment Manager giving the other party not less than 36 months' notice. This arrangement supersedes the provision for a further eight year term as set out in the management agreement.

The annual management fee and performance fee arrangements remain unchanged. The Trust will continue to pay a management fee at an annual rate of 1% of the gross assets of the Group, payable quarterly in arrears. The Investment Manager is also entitled to receive an annual performance fee calculated with reference to total shareholder return ("TSR"), whereby the fee is 20% of any excess over an annualised TSR of 12% and then a further 15% of any excess over 20%; the performance fee is subject to a three year high watermark with a minimum threshold of 100 pence. The TSR is calculated by reference to the Trust's share price at the end of the relevant accounting period, plus any dividends paid to shareholders and returns of capital received by shareholders during that period.

For further information:

Dick Kingston, Chairman, Alpha Pyrenees Trust Limited 01481 231100

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.