UNAUDITED HALF YEAR RESULTS – 31 DECEMBER 2010

Highlights:
• CLA Group total assets of US $103,432,154;
• Group Net post-tax profits increased by 18.7% to US $2,156,246;
• Net assets increased by 10.5% to US $41,518,952;
• EPS (fully diluted) increased to 2.20 cents;
• NTA per share increased 42 cents.

Directors’ Review of Operations and Strategy
The Group results for the six month period were in line with expectations and the directors are pleased to report a substantial 18.7% increase in profits. These increased profits of US $2,156,246 were delivered on marginally higher revenues and substantially decreased costs, mostly from lower finance costs.

The final tranche of the Group’s expensive mezzanine finance facilities was refinanced during the period which will make further cost savings going forward. A loan facility of US $2,000,000 was refinanced and drawn down to replace a higher cost AUD 2,089,967 guarantee facility which was originally arranged to complete the purchase of two Airbus A321s and one Airbus A320 aircraft in June 2008. This refinancing was particularly pleasing given the market tensions in obtaining debt finance.

The Group repaid US $4.3m of debt during the period and Company’s financial position has been strengthened with Net Assets at US $41.5m, up by US $3.9m compared to the comparative period last year.

The aircraft fleet currently comprises two Airbus A321-200’s, three Fokker F100 jets and one Airbus A320. All are currently leased to quality airlines with lease expiries ranging from September 2012 to March 2015.

Given the activity of some large lessor entrants in the market place during the period, pricing on transactions has been competitive which has detracted from the economics of potential transactions. As this ‘new entrant’ activity returns to a more normal level, and while airline industry parameters continue to improve, we aim to complete further transactions to expand our portfolio of aircraft.

The Company’s preferred asset targets are the Airbus A320 series and Boeing 737 family of new generation aircraft as we believe these pose the lowest risk given their liquidity, appeal to operators, and ability to remarket.

The risks to the business include typical aviation related risks, including but not limited to, any downturn in the global aviation industry, fuel costs, finance costs, war and terrorism and the like which may affect our airline customers’ ability to fulfil their lease obligations. The business also relies on its ability to source finance on favourable terms. Should this supply of finance contract, it will limit our fleet expansion opportunities and therefore growth.

Richard Sinclair Chief Executive Officer On behalf of the Board of Directors of Capital Lease Aviation PLC

Enquiries:
CapitalLeaseAviationPlc 07783942553 Jeff Chatfield, Executive Chairman
Nominated Adviser James Joyce, W H Ireland Limited
Company Stockbroker W H Ireland Limited 0207 220 1670
Share Register Computershare Investor Services Plc
Website www.capitalleaseaviation.com