First investment in Croatia

Dolphin Capital Investors Limited
05 February 2007


For release07.00am                                              05 February 2007

           Dolphin Capital Investors Limited ('DCI' or the 'Company')

   First investment in Croatia - €35 million commitment in Livka Bay Resort



Dolphin Capital Investors Limited, a real estate investment company focused on
the Master-planned Residential Resort sector in Southeast Europe and managed by
Dolphin Capital Partners Limited ('DCP'), is pleased to announce the closing of
a new investment in Livka Bay Resort, situated on the island of Solta, Croatia.


DCI is one of the largest real estate investment companies listed on AIM. The
Company focuses on early-stage, large scale leisure-integrated residential
resorts mainly in Greece, Cyprus, Croatia and Turkey. The Company's shares
commenced trading on AIM on 8 December 2005, having raised £70.7 million (€104
million) at an issue price of 68p, followed by a £202.7 million (€300 million)
secondary offering at a price of 93p per share in October 2006.


Highlights:


  • Livka Bay Resort ('Livka Bay' or the 'Project') represents DCI's first
    investment in Croatia and is intended to become one of the first exclusive
    residential resorts on the Dalmatian coast with a luxury hotel, a 160-berth
    marina and other supporting recreational, sports and retail facilities.


  • The Project's beach-front, 56-hectare site (the 'Site') surrounds the bay
    of Livka on the south end of the island of Solta which is only 15 km away
    from Split International Airport. The majority of the Site has recently
    achieved the relevant zoning.


  • DCI is committing a total of €35 million to acquire a 90% shareholding in
    the Project company and fund the resort's initial development expenses. The
    remaining shares are owned by Virtus Investments BV ('Virtus'), a developer
    of high-end resorts.


  • At closing, DCI has paid €5.2 million to acquire a 90% shareholding in the
    Project company with a further amount of up to €16.6 million to be paid in
    stages conditionally upon permit progression and certain sale thresholds
    being achieved. An additional amount of €2.8 million has also been
    contributed into the Project company to repay part of the existing
    shareholder loans made to the company and also to fund part of the ongoing
    development expenses.


Said Miltos Kambourides, Managing Partner of DCP: 'Livka Bay marks DCI's first
investment in Croatia, a country whose residential resort potential remains
largely untapped. Livka Bay is expected to be one of the first developments to
come to market, providing DCI with a leading position in the Dalmatian coast.'


Further Details:


Livka Bay represents the development of a premier master-planned
leisure-integrated residential resort comprising an exclusive residential
development of approximately 80,000 residential buildable m2, a luxury 80-room
hotel, a 160-berth marina and other supporting recreational, sports and retail
facilities.


The Site is located around Livka bay on the island of Solta, an uninhabited and
unspoiled natural cove on the south-eastern side of the island, off the coast of
Split. Solta is some 15 km from the mainland and is accessible within 30 minutes
by ferry or private boat from Split International Airport, which has direct
scheduled flights currently from Frankfurt, London, Rome and Milan.


Livka Bay Resort is expected to be one of the first leisure-integrated
residential resorts to come to market in Croatia. The Project has already
obtained zoning for the first phase of its development comprising the marina,
hotel, club house, retail village, beach club and some residential show villas.
Zoning for the remaining residential component (villas and apartments) is
expected during 2007. Final permits for the entire Project are expected within
18 months and construction is set to begin during the second half of 2008. DCI
is in advanced negotiations with leading operators and designers for the
development and operation of the resort.


DCI is committing a total of €35 million in return for a 90% shareholding in the
Project company. An initial investment of up to €21.8 million will take the form
of a staged acquisition, subject to specific permit milestones and residential
real estate sales having been achieved. An additional amount of €13.2 million
has been committed to repay existing shareholder loans (€2.4 million), acquire
additional contiguous land and fund the permitting and early development phases
of the Project.


The remaining shares in the Project company are owned by Virtus Investments BV,
a holding company developing high-end resorts. Virtus has successfully been
acquiring the land and taking it through the zoning process over the past two
years and will continue to manage the permitting process of the Project until
all construction permits are granted.


At Closing, DCI acquired 90% of the shares in the Project company by paying €5.2
million to Virtus and by contributing an additional €2.8 million into the
Project company to repay part of the existing shareholder loans and fund part of
the ongoing development expenses.

For further information, please contact:

Dolphin Capital Partners Limited
Miltos Kambourides / Pierre Charalambides
[e-mail] / [e-mail]

Grant Thornton Corporate Finance                       Tel: [phone]
(Nominated Adviser)
Philip Secrett

Panmure Gordon                                         Tel: [phone]
(Broker)
Richard Gray / Dominic Morley / Andrew Potts

Adventis Financial PR                                  Tel: [phone]
Annie Evangeli                                         Tel: [phone]
Peter Binns                                            Tel: [phone]







Notes to Editors



Dolphin Capital Partners

DCP is an independent private equity firm founded in 2004 by Miltos Kambourides
and Pierre Charalambides after leaving Soros Real Estate Partners.


The DCP professionals combine extensive local knowledge and contacts with
expertise gained at some of the world's leading financial institutions. They
specialise in providing capital to rigorously selected real estate developments
in Southeast Europe by joint venturing with local developers. For every
development, DCP partners with an international and sophisticated network of
operators, designers, master-planners, marketing agents and financial
institutions.


Dolphin Capital Investors

In addition to Livka Bay, DCI has closed investments in seven other projects,
namely Kilada Hills Golf Resort, Scorpio Bay Resort, Apollo Heights Polo Resort,
Amanmila Resort, Lavender Hills Golf Resort, Sitia Bay Golf Resort and Seascape
Hills Resort, committing a total of €236 million since its Admission to AIM in
December 2005.


DCI's investment objective is to provide shareholders with strong capital growth
combined with a low risk profile through investing in early-stage sophisticated
leisure-integrated resort developments in Southeast Europe (principally Greece,
Cyprus, Croatia and Turkey) in partnership with leading developers and
operators.




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