Acquisition

Dawnay, Day Carpathian PLC
02 April 2007


                           DAWNAY, DAY CARPATHIAN PLC
                           ('DDC' or 'the Company'),


      Announcement of project funding and agreement to purchase a majority
       shareholding in a premier shopping centre project in Riga, Latvia.

                       DDC full investment target reached

Highlights:


  • Agreement to acquire 55% stake in Galleria Patollo shopping centre in
    Riga, Latvia

  • DDC providing up to €42 million of equity to the project

  • Premier shopping centre with up to 220 shops and restaurants, covering
    41,000 sq m

  • Construction commences in June 2007 and completion is expected by
    October 2009

  • Prime retail rents in Riga below regional average - significant scope
    for growth

  • DDC has now reached its full investment target

Dawnay, Day Carpathian PLC the retail commercial property investment company
established to invest in Central and Eastern Europe, is pleased to announce that
it has agreed the purchase of a 55% stake on completion of the development of
the Galleria Patollo shopping centre in Riga, Latvia. The development partner
and vendor is Titan Invest A/S, a Danish real estate company with over 7 years
experience of working in Latvia. Following this investment, DDC has reached its
full investment target set at IPO and is considering its funding options, with
the intention of continuing to maximise the future growth of the Company.

Under the agreement, DDC is committed to provide staged, conditional payments of
£21.8 million (€32 million) of equity to partially fund the project, and is
expecting to also invest up to a further £6.8 million (€10 million) during the
project period. All of the investment will earn attractive priority interest
accruing against the completion price. DDC's equity investment and accrued
interest thereon will be secured against the seller's substantial site value A
project debt finance facility has also been agreed with Nordea Bank.

On completion, DDC will have secured a 55% stake in the centre at an agreed
initial yield of 8% based on achieved Net Operating Income. On or near
completion, the partners intend to realise a significant uplift in value as
recognised by the market for such prime completed projects.

Construction of the shopping centre is expected to commence in June 2007 and be
completed by the third quarter of 2009. Currently the vendor has completed site
assembly for the main part of the scheme. There is also an opportunity to expand
the scheme by incorporating two additional buildings into the shopping centre.
The enlarged scheme will comprise 220 shops and restaurants, 41,000 sq m of
retail space and 175 underground parking spaces.

The site is ideally located in a prime location in the commercial centre of 
Riga. Given the quality of the location and the critical mass of the scheme,
Galleria has the potential to become the leading fashion shopping centre in
Latvia.

In Cushman & Wakefield's 'Marketbeat Europe Annual Review 2006/7', Riga was
shown as currently having the second lowest prime retail rent of any European
capital city. Riga's prime retail rent level is below that of its Baltic
neighbours, Vilnius and Tallinn, therefore indicating excellent scope for growth
and yield compression.

In July 2005, DDC was admitted to AIM and raised gross proceeds of £140 million.
As a result of today's announcement, the Company has now reached full investment
with over 90% of its funds invested or committed.

On 1 February 2007, the Directors announced that, barring unforeseen
circumstances, it was the Company's objective to recommend a total dividend of
approximately 10p per share following full investment of the fund for the 12
months to 31 December 2007. This remains the Company's objective and reflects
the Directors' intention to continue to provide investors with substantial
dividends in addition to the confirmed potential for capital growth. In this
regard the Board is pleased to confirm that it now also targets 10p per share
for the year ending December 2008. This reflects the strong underlying cashflows
associated with the Company's portfolio and the flexibility now available to the
Company to advance cashflows as a consequence of refinancing opportunities.

The potential for capital growth was reflected in the announcement of 12 March
2007 which indicated that the unaudited net asset value per share (adjusted to
exclude goodwill and any deferred tax liabilities arising on the property
valuations) had risen to 126.7p from 98.2p, an increase of 29%.

The pipeline of potential future transactions remains strong and now
significantly exceeds the residual liquidity  remaining within the Company.  In
addition, as was noted in the recent trading update made on 1 February 2007, a
number  of development opportunities exist which the Company is seeking to
pursue.  Overall, the Directors' objective is to  ensure that the Company is
able to maintain the existing positive momentum.

Commenting on this announcement, Rupert Cottrell, Chairman of Dawnay, Day
Carpathian said: 'We are delighted to report the Company has reached full
investment. Our strategy remains focused on acquiring income producing retail
assets with excellent growth potential in Central and Eastern Europe. Together
with identifying asset management and regeneration opportunities in our target
countries to which we can apply our expertise to generate cashflow and capital
growth. We also intend to partner with experienced local developers where we see
opportunities like Riga, for significant returns with minimal development risk.'

Enquiries:

Dawnay, Day Panterra         Peter Klimt                   020 7834 8060
                             Paul Rogers
                             Balazs Csepregi

Numis Securities             Andrew Dawber                 020 7260 1000
                             Bruce Garrow
                             Anthony Richardson

Cardew Group                 Tim Robertson                 020 7930 0777
                             Catherine Maitland


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            The company news service from the London Stock Exchange