Moray Schools PPP Reaches Financial Close

23 June 2010

International Public Partnerships Limited

Moray Schools PPP Reaches Financial Close

International Public Partnerships Limited ("INPP" or "the Company"), the listed infrastructure investment company, is pleased to announce that the INPP-led consortium has reached financial close on the Moray Council Building for Learning PPP project in North East Scotland. The consortium was advised by Amber Infrastructure (Amber), who acted as financial advisor and equity arranger.

INPP has invested approximately £4million of equity for a 100% interest in the project. Senior debt has been arranged with Aviva for a fixed term of the construction period plus 29 years and at a fixed margin for the life of the project.

The project includes the redevelopment of a primary and a secondary school at Keith and Elgin, both near Inverness. Construction will be undertaken by Stewart Milne Group Ltd and is scheduled to complete in early 2012. The concession period is 30 years from construction completion and is due to expire at the start of 2042.

Facilities management services have been outsourced to FES FM Ltd (FES), an experienced Scottish PPP facilities management provider. FES will be overseen by Kevin Hawkins, a member of the Amber asset management team, who also has responsibility for the Company's successful Northampton Schools PPP project.

The overall return on the project is forecast to be in a range which is accretive to the Company in net asset value terms. In addition, the majority of the project's revenues benefit from a combination of indexation (RPI) and annual fixed increases. Revenues from the project are guaranteed by the Moray Council (subject to satisfactory construction and operational performance).

Keith Dorrian, Chairman of INPP, said today: "We are delighted to reach financial close on this important project. INPP's portfolio includes ten school projects in the UK, Canada and Australia. This new investment further consolidates INPP's leading position in the schools PPP sector and establishes INPP as a participant for forthcoming Scottish infrastructure projects."

"INPP through Amber maintains preferred bidder status on a number of additional projects, as well as having an encouraging pipeline of other opportunities which are currently under review. INPP has a right of first refusal over each of these projects and remains on track to invest the proceeds of the equity raising completed in January 2010 by or before the end of the year."

For further information:

Bianca Francis +44 (0)20 7939 0558

Amber Fund Management Limited

Nick Westlake +44 (0)20 7260 1345

Numis Securities

Ed Gascoigne-Pees/Ed Berry +44 (0)20 7269 7132/7297 Financial Dynamics

Notes to Editors:

About the Redevelopment

The replacement for Elgin Academy will accommodate 1,050 pupils and will comprise classrooms, a games hall, gym, fitness suite and dance studio for the modern curriculum. There will also be a community room which can be accessed by parents and local groups in and out of school hours. External facilities will include a full-size floodlit all-weather pitch, two grass pitches built to Sportscotland standard, and a secure terraced courtyard.

Keith Primary comprises classrooms for nursery though to P7, pupil support, an assembly and games hall, a kitchen and dining hall, and a space for community use. External facilities include safe play provisions for children at all stages, outdoor "classrooms" where lessons can be held, and a fenced all-weather multi-use games area. Also being provided as part of the school development is a full-size floodlit all-weather pitch, and two grass pitches, again to Sportscotland standards.

About International Public Partnerships (INPP):

International Public Partnerships (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP) and private finance initiative (PFI) procurement methods.

Listed in 2006, INPP is a long-term investor in 52 social and transport infrastructure projects, including schools, hospitals, courts and police headquarters in the UK, Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term government-backed yield and capital growth through investment across both construction and operational phases of 25-40 year concessions.

Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and consists of 50 dedicated infrastructure specialists which originate and source a strong pipeline of projects for INPP, which has a 'right of first refusal' to invest in all projects developed by Amber.