Portfolio Update

Equest Investments Balkans Ltd
13 December 2007



13 December 2007


EQUEST INVESTMENTS BALKANS LTD


Update on investment portfolio and other developments


Equest Investments Balkans Limited ('EIB' or the 'Company') today announces an
update on its portfolio holdings and developments within the Company.


During the current year, EIB has invested in total €72.8 million of its own
resources consisting of four new investments in Bulgaria, Romania and the Former
Yugoslavian Republics ('FYR') for €66.6 million (including all acquisition
costs) and follow on investments in existing portfolio companies of €6.2
million.


EIB has utilised a mixture of debt and equity from strategic partnerships when
making acquisitions such that total acquisition cost value of investments in the
year was approximately €200 million.  Having invested the net proceeds of €64.5
million, which it raised at the time of the Company's admission to AIM in
December 2006, the Company is now effectively fully invested.


The new investments in the year include:


•   a strategic holding in the Rila Samokov 2004 AD, a large scale development 
    at Super Borovets adjacent to Borovets, Bulgaria's oldest mountain
    and ski resort;



•   a majority stake in Domo Retail SA, the second largest electronics retail 
    operation in Romania;



•   Novera EAD which owns the principal concessions for waste collection
    and transportation services in Sofia; and



•   a staged investment in the Technomarket branded operations in the FYR 
    region.



Further details of the Company's investments during the year are set out in the
appendix to this announcement.



EIB's current investment strategy is principally to acquire controlling stakes
in companies in the retail, infrastructure and property development sectors in
the Balkan region. EIB typically holds controlling stakes in its portfolio
companies either solely or jointly (as in the case of SuperBorovets and Uniqua)
with leading international partners.

Update on TechnomarketDomo Group



EIB's investment in electronics retail operations in Bulgaria and Romania is
held through a 75% indirect holding through Lynx Properties BV ('Lynx'). The
Company has nominated ING Bank as sole bookrunner and joint lead manager with
Raiffeisen Centrobank for a proposed initial public offering of Lynx on the
Sofia and/or Bucharest Stock Exchanges.  The proposed IPO is planned for the
first half of 2008.



Technomarket, the Bulgarian operations of Lynx and the largest electronics
retailer and wholesaler in Bulgaria, has performed well during the year and the
unaudited financial results for the 9 months ended 30 September 2007 showed a
26% increase in sales compared to the corresponding period in 2006.



Domo, the Romanian operations of Lynx, which were acquired in October 2007
through the acquisition of a 75% majority holding in Domo by Lynx, has achieved
significant growth during the year and has now achieved the second largest share
in the Romanian electronics retail market.  The unaudited financial results of
Domo for the 9 months ended 30 September 2007 showed a 55% increase in sales
compared to the corresponding period in 2006.



Additionally EIB has acquired a staged holding in Harwood Holdings BV, which
comprises companies that operate under the Technomarket brand in Serbia and
Montenegro and which will acquire in the first quarter of 2008 additional
companies operating in Macedonia, Bosnia & Herzegovina and Kosovo. The Company
is currently in discussions with EIB's joint venture partners in Harwood and the
lead manager of Lynx's proposed IPO on options for including these operations in
a staged manner into Lynx, following the proposed stock market listing.



Updates on the other companies in the portfolio can be found in the appendix to
this announcement.


Other developments


The Board together with its advisers, including the investment manager, is
currently evaluating a number of strategic options with the objective of
broadening the Company's investor base, research coverage and liquidity in the
Company's shares. Options being considered include, but are not limited to
changing the structure of the Company from an externally managed fund structure
to an internally managed holding company structure.  The Board is in discussions
with its investment manager, who would be retained as the operative management
of the Company, as to the associated costs and potential implications of any
such changes.



The Company is also considering an additional listing of the Company's shares on
the main stock exchanges of Bucharest and/or Sofia.  All of the investments of
the Company are concentrated in the Balkan region and since its launch in 2004,
the Company and its investment manager now enjoy strong name recognition in its
principal markets.  Furthermore, the planned IPO of TechnomarketDomo on the
Sofia and/or Bucharest Stock Exchanges is expected to further increase the
awareness of the Company's shares in these growing regional stock markets.



Commenting on these developments, Petri Karjalainen, Managing Partner of Equest
Partners Limited, the parent of Equest Capital Management Limited ('ECML'),
EIB's investment manager, said:



'We have had an active year to date and have completed four significant
investments for the Company. These investments have already demonstrated good
growth and added significant value to EIB.  At the same time our existing
portfolio continues to perform well.



We look forward to exploring with the Board in more detail changes to the
management structure of the Company, which we believe will benefit the Company
and its shareholders. The proposed changes would affect only those senior
managers specifically involved in the management of EIB. The management of
Equest Balkan Properties PLC by Equest Property Management Limited would be
unaffected by these changes.'


For further information please contact:

Equest Partners Limited
+ 44 20 7240 7600
Petri Karjalainen
Naomi Kora


Collins Stewart Europe Limited
+ 44 20 7523 8325
Hugh Field
Jonny Sloan


Financial Dynamics
+ 44 20 7831 3113
Ed Gascoigne-Pees
David Cranmer



Notes to Editors:


Equest Investments Balkans Limited, is a specialist investment company focussed
on retail, financial services, infrastructure and property development in South
Eastern Europe, which was established in 2004.  Today it is one of the leading
investment companies for private companies in the region comprising Bulgaria,
Romania, Serbia, Macedonia, Montenegro, Bosnia and Albania as well as Turkey and
Ukraine as additional investment regions. The Company was admitted to trading on
the AIM, a market of the London Stock Exchange in December 2006 and is also
listed on the Irish Stock Exchange. EIB has an investment management and
advisory agreement for its operations with Equest Capital Management Limited and
Equest Partners Limited, which has investment offices in London, Sofia,
Bucharest, Belgrade and Montenegro.

Appendix


Update on other portfolio investments

Borovets


EIB's indirect 33.5% investment in the large scale Borovets mountain resort
development project is held through a 50% ownership in Borovets Invest BV, a 50/
50 joint venture within a Gulf-based sovereign wealth fund.  Borovets Invest BV
owns a 67% controlling stake in Rila Samokov 2004 AD, the project company which
owns 1,977,131 sq.m. of land for development in the Bulgaria's oldest ski
resort, Borovets.  Following the closing of the investment, the Board has been
developing the business plan and, as a result, EC Harris, a leading
international property development consultancy company, has been retained to
recommend external advisors to revise the business plan and identify and propose
development managers for the project.



The Rila Samokov 2004 AD project is a c.€560 million development project for the
construction, over the next five years, of a total 653,815 square meters of
mixed use development including residential apartments, hotels and retail space
as well as associated infrastructure, including the creation of an additional
36.5 km of ski runs to complement the existing skiing area.



The Rila Samokov 2004 AD project had its official launch in November 2007,
following which the construction of the first station of a new Gondola lift was
started. The project was also awarded a First Class Investor status by the
Bulgarian Foreign Investment Agency which, as a result, will provide the project
with fast track assistance as well as participate in select infrastructure costs
associated with the project which is one of the largest international
investments in Bulgaria.

Novera


Novera is EIB's waste collection and transportation holding in Sofia.  Novera
has acquired three concessions (Ditz, Chistota and Wolf 96) that cover the
provision of waste services across the territory of Sofia. Following its
acquisition by EIB, Novera has performed in line with management expectation.
Unaudited financial results for the 9 months ended 30 September 2007 showed
recurring revenue of €4.2 million. Operationally EIB has been in an ongoing
process of taking over the operational activities and has introduced new
management to Novera's activities.

Uniqa Bulgaria


Uniqa Bulgaria, has continued to perform well and is now the third largest by
market share in the fast growing life insurance market in Bulgaria, with a
market share of 14.3% during the first 9 months to 30 September 2007.  Life
sales were up 127% on the corresponding period last year. The non-life
operations are also performing well, with premiums growing 36%, compared to the
same period last year. The unaudited financial results for the 9 months ending
30 September 2007 showed a 53% increase at the group level in total premiums,
compared to the corresponding period last year. Uniqa Bulgaria is owned jointly
by Uniqa Insurance, Austria's leading insurance group and one of the leading
insurance groups in the CEE region and EIB.

Avto Union


Avto Union, the automotive importer and distributor in Bulgaria, in which EIB
owns 80% has experienced continued growth in all segments of its operations
including car imports and distribution (Fiat, Lancia, Alfa Romeo, Maserati,
Mazda, Opel, Chevrolet), car rentals (Avis), lubricants distribution (Castrol,
BP) and import and distribution of scooter brands (Piaggio, Vespa and Gilera).
The volume growth in the car import segment achieved by Avto Union brands for
the 9 month period ended 30 September 2007 is 30%, which is 5% higher than the
market growth for the 9 months of 2007. The growth in lubricants sales for the 9
month period ended 30 September 2007 is 8%, which is a good result in a mature
market segment. Scooter sales have more than doubled, compared to the prior
period last year, thus achieving a 29% market share and rent-a-car revenues have
registered a 52% increase.



Avto Union's results and market trends have proved management projections of
continued growth of the new car market in the year of EU accession. The
unaudited financial results for the 9 months ended 30 September 2007 showed 47%
growth in revenues, compared to the prior year period. Separately, the property
development activities of Avto Union are proceeding well and the completion of
the first Avto Union centre is projected for the beginning of 2008. It will
total 28,000 sq.m. of built up area, including 7 000 sq.m. of showrooms, car
service centres and other facilities for the customers of the brands Fiat,
Lancia, Alfa Romeo, and Maserati, as well as 21,000 sq.m. of premium class
offices for external rental.

Immofinance


81% of the apartments and 71% of the garages in Embassy Suites have now been
sold. The remaining 19% of the apartments and 29% of the garages are expected to
be sold by February 2008.



Construction of Banya Spa and Wellness Resort is continuing as planned and
building permission has now been issued for Banya Spa II. Preliminary technical
and working designs are ready and construction is expected to start in Q1-Q2
2008.



Construction of Boyana Park will commence in March 2008 and is expected to be
completed by February 2010. There are also currently negotiations with a
potential buyer and a preliminary design project is now ready.



Construction of The Boyana Diplomatic Club is due to commence in March 2008 and
to be completed in September 2009 with advanced negotiations with a potential
buyer underway. A detailed urbanisation plan and zoning have been prepared and
an announcement procedure is underway. A preliminary design project is ready.
The gross floor area for Immofinance in the project is projected at
approximately 5,000 sq. metres, all of which is for residential apartments.



Construction has started at Sozopolis and 10 reservations have been already
made. The completion date is expected to be mid 2009. It is expected that
detailed plans for the development of Kavarna Blue Lagoon will be completed in
the next few months. Currently a procedure for acquiring the neighboring
forestry enterprise and a tender for appointment of architectural design company
are underway.

Pelican


A preliminary contract for the acquisition of a neighboring land plot and
building for Sedika has been signed. A final contract is expected to be signed
shortly.  The total gross floor area of the project could be increased by
approximately 5,000sq.m. if the neighboring land plot is acquired. Demolition
and excavation works are due to start by April 2008, subject to receiving
building permission and a further approval in respect of the historical
significance of the location, which have been requested by the authorities in
recent months (to be issued by end Dec 2007). Dismantling works have now
finished and completion is expected by mid 2010.



Refurbishment of Evropa Palace, which has been let under a 10 year rental
agreement to an Italian fashion retailer is expected to be completed by mid
2008. The first rental payment is due on 1 May 2008.



Iztok is to be demolished and reconstructed as a multi-storey retail and office/
hotel building   Design works, additional land purchase, permits and approvals
could be completed by June 2008 and demolition and site mobilization are
scheduled to start in mid 2008.  The reconstruction of Urvich is scheduled to
commence in the first half of 2008 and negotiations with potential tenants and
buyers are ongoing. Brokerage agents have been appointed.



A detailed urbanization plan and zoning for Rodacar has been prepared for the
redevelopment of this site into a new build multi-purpose development for an
expo centre, retail, car showroom, office and hotel use. The detailed
urbanization plan and zoning are to be approved by end of 2007, after which
design works can commence. Construction is expected to start in May 2008.

Citadel


Citadel has continued to further build its land bank outside Bucharest and has
to date acquired some 121 ha of agricultural land for a total investment of €3.4
million.

Familia


Familia is a food retail operation in Bulgaria that the Company is currently in
the process of disposing of in order to extract some value from this investment
and as part of EIB's further concentration on its main investments in the
portfolio.


Investments announced in 2007

During the year 2007 to date, the Company has announced the following acquisitions:


Novera EAD, Waste Collection and Transportation, Bulgaria - The Company acquired
Christota AD, Wolf 96 OOD and Ditz AD, the three concession holding companies
for waste collection and transportation in Sofia, through Novera EAD, a wholly
owned subsidiary of EIB. The companies provide waste collection, street cleaning
and snow clearing services to the Municipality of Sofia in Bulgaria. The
consideration was made up of €45 million in cash, with up to a further €10
million payable in cash dependent on the performance of the companies in 2007.
The initial cost of the acquisition of €45 million was financed through a
commitment of €25 million by EIB and a mezzanine debt facility of €20 million
from Accession Mezzanine Capital ('AMC'), which entitles AMC to an equity stake
of 6% of the equity in Novera EAD. Since completing the acquisition, EIB has
further refinanced its initial equity investment by completing on a senior bank
debt facility of €15 million.


Barrowbridge Investment BV, Electronics Retail, Serbia - The Company acquired
through its  wholly owned subsidiary Techno-Mobile NV a 50% shareholding in
Barrowbridge Investment BV, the holding company for Technomobile Corporation
d.o.o. which operates a chain of over 20 retail stores selling GSM sets, small
consumer electronics devices and complementary services under the Technomobile
brand name in Serbia. The acquisition consideration of €1.6 million was funded
by cash from EIB's own resources in the form of an equity subscription for
€850,000 and a €750,000 shareholder loan.


Rila Samokov 2004 AD, Borovets Ski and Mountain Resort Project, Bulgaria - The
Company acquired a strategic 33.5% indirect equity holding in Rila Samokov 2004
AD, the company which owns 1,977,131 sq.m. of land for development in the
Borovets mountain resort area in Bulgaria. EIB invested €25.9 million in cash,
comprising a payment for the equity purchase and a capital contribution into
Rila Samokov. EIB owns 50% of Borovets Invest NV, a holding company, which in
turn owns 67% of Rila Samokov. EIB's partner in Borovets Invest NV is a
Gulf-based sovereign wealth fund. The other shareholders in Rila Samokov are the
Municipality of Samokov (25% shareholding) and Bulgaria's leading construction
company Glavbolgarstroy (8% shareholding). Rila Samokov's development project in
Borovets is one of the largest property development projects in Bulgaria
currently in progress and was awarded a First Class Investor status by the
Bulgarian Foreign Investment Agency. The project involves, over the next five
years, the construction of a total 653,815 sq m of residential apartments,
hotels and retail space as well as associated infrastructure, including the
creation of an additional 36.5 km of ski runs to complement the existing skiing
area. Borovets is Bulgaria's oldest mountain resort and is located 73km from the
capital, Sofia and caters for both winter and summer recreation.



Domo Retail S.A., Electronics Retail, Romania - The Company acquired, through
its 75% owned subsidiary, Lynx Property B.V., 75% of the shares of Domo Retail
S.A. for a total consideration of €62.5 million. The consideration was funded by
€30 million in cash from Lynx and a €35 million loan facility from Raiffeisen
Zentralbank Osterreich AG. EIB, from its own resources, and has provided a
shareholder loan facility of up to €13.5 million to Lynx to finance its part of
the consideration paid by Lynx, and Lyra Investment Holding N.V., which owns 25%
of Lynx, provided Lynx with the balance of the Lynx consideration. Domo is a
consumer electronics and household appliances retailer in Romania. Domo
currently operates 120 retail shops located in major cities throughout Romania,
with an average size of over 420 sq m.


Harwood Holding BV, Electronics Retail, FYR Region - The Company announced that
it has completed the staged acquisition of interests in Harwood Holding BV, the
holding company for companies operating the Technomarket branded retail and
wholesale operations in Serbia and Montenegro. EIB has acquired an effective 23%
equity stake in Harwood for a €1.7 million equity investment and a payment of
€10 million capital loan as well as a €4 million capital loan payment to be
completed in Q1 2008. In consideration for €1 million, EIB's joint venture
partner has undertaken to procure Harwood's acquisition of four additional
companies operating under the Technomarket brand name in Albania, Macedonia,
Bosnia & Herzegovina and Kosovo by the end of March 2008. EIB has an option to
additionally acquire in stages up to 50% of the issued share capital of Harwood
in 2008 and 2009 respectively, except for the subsidiary registered in the
Republic of Macedonia, in which EIB shall have a 75% economic interest.


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