CIU.L Regulatory News (CIU)

Embargoed: 1200hrs 30 December 2010

CAPE PLC

("Cape", the "Company" or the "Group")

SHORT TERM FINANCING TRANSACTION

Cape plc announces that its subsidiaries Cape Industrial Services Limited and DBI Industrial Services Limited (the "UK Subsidiaries") have concluded short term financing transactions with a subsidiary of Société Générale, SG Leasing (June) Limited ("Société Générale").

On 9 December 2010 each of the UK Subsidiaries entered into sale agreements with Société Générale to sell certain tangible fixed assets of the Group (the "Assets") to Société Générale for an aggregate amount of £15.87 million, being their fair market value. Following completion of the sale, the Assets were subsequently leased back to the UK Subsidiaries by Société Générale.

At the time of entry into the sale agreements, option agreements were also entered into by the parties which allowed the UK Subsidiaries to reacquire the Assets at a later date. Following Société Générale's exercise of such options the UK Subsidiaries have today acquired the Assets, in accordance with the terms of the option agreements, at an aggregate price of £15.83 million, being a price equal to their fair market value at the exercise date. These Assets will continue to be used by the UK Subsidiaries and other Group companies.

Throughout the period between Société Générale leasing the Assets to the UK Subsidiaries and the reacquisition of the Assets today, the Assets have continued to be included within the Group's tangible fixed assets at their net book value and following the payment under the option agreements no further balances are owed to Société Générale.

It is anticipated that the reacquisition will give rise to capital allowances for the Group on an amount of expenditure equivalent to the price at which the Assets were acquired from Société Générale. This would benefit the Group through a lower effective tax rate in the period in which it is recognised in the Group's accounts. The tax benefit expected to arise will be recognised, in line with the Group's accounting policies.

Additionally, as required by AIM Rule 17 and Schedule 2 Annex III, the Company has updated information relating to directors of the Company on its website at:

http://www.capeplc.com/cape/pages/aboutus/ourboard

For further information please contact:

Cape plc

Martin May, Chief Executive Officer

Richard Bingham, Chief Financial Officer

Tel. +44 (0)20 3178 5498

Numis Securities Limited

Nominated Adviser: John Harrison, Managing Director Corporate Finance

Corporate Broker: James Serjeant, Director Corporate Broking

Tel. +44 (0)20 7260 1000

Merrill Lynch International

Andrew Tusa, Managing Director Corporate Broking Europe

Tel. +44 (0)20 7628 1000

M: Communications

Patrick d'Ancona or Ben Simons

Tel. +44 (0)20 7920 2347

About Cape:

Cape plc (www.capeplc.com), which is listed on AIM (CIU), provides a range of non-mechanical industrial services including access systems, insulation, painting, coatings, blasting, industrial cleaning, training and assessment to both industrial plant operators and major international engineering and construction companies.

As a single source provider Cape is able to provide a range of specialist multi-disciplinary services specifically tailored to meet the needs of the client providing the most intelligent and cost efficient solutions for our customers non-mechanical in-plant maintenance and capital needs.

In the year ended 31 December 2009, Cape reported revenues of £655.1 million. With scale and leading market positions across its international footprint Cape employs over 17,000 people in 28 countries and safely delivered over 41 million man hours in 2009.