Acquisition

Fabian Romania Property Fund Ltd
25 June 2007


Fabian Romania Property Fund Limited ('Fabian Romania' or 'Fabian')

Fabian Romania acquires a 50 per cent. interest in a residential development
site to build 250 apartments in Timisoara for €4.7 million

Fabian Romania is pleased to announce that it has purchased 50 per cent. of a
development company owning a 1.1 hectare site in north Timisoara. The equity
consideration amounts to approximately €1 million.

The land area totals approximately 11,000 square metres and has urban zoning
approval to build over 250 apartments (subject to building permits) comprising
over 30,000 square metres of residential development space. Coltex, the
co-shareholder holding the other 50% interest, has entered into a partnership
agreement with Fabian. Coltex will also be the development manager and has a
known track record, having developed and sold the successful Banu Antonache
building to Fabian in late 2005.

Timisoara is Romania's third largest city with a population of over 300,000 and
is located in the West close to the Hungarian border.  The Investment Manager
believes the city has attractive characteristics for supply of modern
residential apartments.

The purchase price for the land including acquisition expenses was €4.7 million.
This equates to around €427 per square metre for the land and €157 per built
square metre overground, assuming 30,000 square metres. The development company
has already secured and fully drawdown on a land finance facility from Banca
Romaneasca for €3.6 million. Including near term working capital needs, this
leaves an initial net equity requirement of approximately €1 million for Fabian.

Responsible for the acquisition, Mark Owen, Property Director of Fabian Capital,
Fabian Romania's investment adviser said:

'This is the first investment for Fabian outside Bucharest and our second
residential scheme. The purchase price for the land is extremely attractive
relative to comparable plots in Bucharest. We are also happy to have entered
into a new partnership with Coltex for this development. Whilst it is clear
Timisoara is in its infancy within the development process, strong indications
exist that the residential sector is very undersupplied and that demand exists
for good, mid market apartments against a background of increasing prices.'


For Comments:

Fabian Romania:
Mark Holdsworth                                             [phone]

Nominated Adviser:
Deloitte & Touche LLP
James Lewis                                                 [phone]

Broker:
Shore Capital Stockbrokers Limited
Dru Danford                                                 [phone]



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