Notice of EGM

Dawnay, Day Carpathian PLC
26 October 2005


Dawnay, Day Carpathian PLC

Cancellation of Part of the Share Premium Account

As indicated in its admission document dated 20 July 2005, Dawnay, Day
Carpathian PLC ('DDC' or the 'Company') announces that it proposes to cancel
£13,860,900 of the Company's share premium account and transfer corresponding
amounts to the distributable reserves of the Company (the 'Cancellation').

The Cancellation will not become effective until shareholder approval has been
obtained and the reduction has been confirmed by the High Court of Justice of
the Isle of Man (the 'Court'). The Company intends to apply to the Court for the
necessary confirmation shortly after the EGM referred to below and it is
currently anticipated that the Cancellation should become effective on or about
12 December 2005.

In its admission document, DDC stated the intention to pay an initial dividend
yield of 3% to shareholders by 31 December 2005. Whilst it is not the Company's
intention to use share capital as a method of dividend payment, in order to
enable this initial dividend to be paid, it is proposed that sufficient
distributable reserves shall be created by cancelling 10% of the Company's share
premium account.

It is envisaged that, subject to shareholder approval at the EGM and the consent
of the Court to the Cancellation, DDC will declare an initial dividend of 3p per
ordinary share.

A circular is being posted to shareholders today convening an EGM to be held at
the registered office of the Company at St James's Chambers, Athol Street,
Douglas, Isle of Man IM1 1JE on 18 November 2005 at 2.00 pm to consider the
Cancellation.

For further information please contact:

Dawnay, Day Carpathian         Peter Klimt               020 7834 8060
                               Paul Rogers
Numis Securities               Bruce Garrow              0207 776 1500
                               Emma Primarolo




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