New Syndicated Bank Facility

    London Scottish Bank plc ("LSB" or the "Company" or "Group")          

                         New Syndicated Bank Facility                          
                                         

LSB announces that its subsidiary Robinson, Way & Company Limited ("Robinson
Way") has entered into an agreement for a new medium term revolving credit
facility. The facility is for an amount of up to �85m and will be used
principally to support the growth of Robinson Way's debt purchase business.

The agreement is the first major step in LSB's plan to recapitalise the Company
and execute the Group's strategy to focus on the growth and development of
Robinson Way. As previously announced in its AGM statement, LSB is proposing an
equity capital issue as part of the re-capitalisation of the Company and to
remedy the regulatory capital shortfall.

The bank facility has been provided by a syndicate of 10 banks led by HSBC and
The Royal Bank of Scotland. It comprises a revolving credit facility of �
83.5 million for Robinson Way and a �1.5 million overdraft facility for the
Group, which both mature on 28 May 2011. 

The new facility replaces the Group's existing bi-lateral bank facilities. The
initial interest rate commences at LIBOR plus 2% and is subsequently linked to
the Group's prevailing gearing levels. 

The agreement contains certain terms relating to the proposed equity capital
issue and contains some restrictions on the total amount of dividend payments.
Following the planned sale of the Group's factoring business and the completion
of the planned equity capital issue the facilities will be reduced by an amount
expected to be �15m and thus total �70m.

In the event that regulatory capital of a minimum of �32.5m has not been raised
by 31 October 2008, the facility's maturity date will be reduced to 28 May
2010. Additionally, in such circumstances, the Company has agreed to take steps
to effect the sale of Robinson Way or the Group by 30 June 2009. 

Robin Ashton, Chief Executive of London Scottish Bank, said:

"The facility agreement is a significant and successful first step in our plans
to re-capitalise the Company. It allows LSB to pursue its strategy of growing
and further developing the successful Robinson Way business which is
strategically well positioned in a growth market."



For more information please contact:

Citigate Dewe Rogerson                  020 7638 9571                          
                                                                               
Grant Ringshaw                                                                 
                                                                               
Lindsay Noton                                                                  



END

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