Admission to AIM

Reconstruction Capital II Ltd
23 December 2005


23 December 2005


           Reconstruction Capital II Limited ('RC2' or the 'Company')

           Admission to trading on the Alternative Investment Market

Reconstruction Capital II Limited (AIM: RC2) is pleased to announce that it has
been admitted to trading on AIM and that its ordinary shares commenced trading
today on AIM under the symbol 'RC2'. The Company raised €24,421,455 in gross
proceeds in a placing of 24,421,455 ordinary shares at €1 per share. Grant
Thornton Corporate Finance is the Company's Nominated Adviser and LCF Edmund de
Rothschild Securities Limited is the Company's Broker.

About Reconstruction Capital II Limited

RC2 is a newly incorporated closed-ended Cayman Islands company created to
invest in private and listed equity securities and fixed income securities,
including convertible and other mezzanine instruments, primarily in Romania and
Bulgaria.

Investment Objectives

Under a Private Equity Programme, RC2 intends to achieve medium and long term
capital appreciation through the investment in and subsequent disposal of
significant or controlling stakes in companies, both listed and private,
established and/or operating primarily in Romania and Bulgaria. In addition, the
Company aims to make portfolio investments in listed equities and fixed income
securities, including convertible and other mezzanine instruments, issued
primarily by Romanian and Bulgarian entities, under a Trading Programme. The
Board intends to allocate RC2's resources in the medium term between the Private
Equity Programme and the Trading Programme in the ratio 70:30.

The Investment Manager and Investment Adviser

The Company has appointed New Europe Capital SRL ('NEC Romania') to advise on
the Private Equity Programme and New Europe Capital Limited ('NEC London') to
manage the Trading Programme. NEC Romania and NEC London are both led by Ion
Florescu. Ion Florescu has headed a team of investment professionals advising
investment funds in Romania since July 1997 when he set up his first fund,
Reconstruction Capital Plc (RC1). The net asset value per share of RC1 increased
by 179% from inception in 1997 to 31 December 2005, the date of the last audited
accounts, which equates to a compound annual growth rate of 14.9% over a period
exceeding 7 years.

Investment Policy

The Company will adhere to the following investment policies:

Type of investment: Under the Private Equity Programme the Company will seek to
invest in and subsequently dispose of, significant or controlling stakes in
companies, both listed and private, established and/or operating primarily in
Romania and Bulgaria. Under the Trading Programme, the Company will make
portfolio investments in listed equities and fixed income securities, including
convertible and other mezzanine instruments, issued primarily by Romanian and
Bulgarian entities.

Geographical focus: The main focus of the Company will be investments in Romania
and Bulgaria. However, the Company may also seek to make investments in
neighbouring countries, notably Ukraine, Serbia-Montenegro, Moldova, Croatia,
Albania and the Former Yugoslav Republic of Macedonia. It is currently
anticipated that in the medium term the Company will invest approximately 70 per
cent. of its assets in Romania and approximately 30 per cent. of its assets in
Bulgaria and neighbouring countries.

Sector focus: Investments will primarily be made in the following areas:

  • Under the Private Equity Programme, the Company intends to invest in
    companies where it believes the Investment Adviser can add value by
    implementing operational and/or financial restructuring over a 3 to 5 year
    horizon. Investments will typically, but not exclusively, be focused on the
    following industry sectors: retail, consumer services, FMCG distribution,
    financial services, communications, logistics, media, light infrastructure,
    consumer products, food, real estate development.

  • Under the Trading Programme, the Company intends to invest in
    undervalued equity securities, IPO's of newly privatised companies and fixed
    income securities.

Ion Florescu, Director of RC2, NEC Romania and NEC London, commented:

'Romania and Bulgaria have made enormous progress over the last few years and
are now among the fastest growing economies in Europe. Both countries are well
advanced in their privatization programmes, and are scheduled to join the
European Union in 2007. We are delighted to have set up a listed vehicle which
should be able to take advantage of the considerable opportunity investing in
these countries now represents, and which should enable investors in the UK and
abroad to participate in the development prospects of the South East Europe
region.'

Enquiries:

Reconstruction Capital II Limited
Ion Florescu Tel: [phone]

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

LCF Edmund de Rothschild (Broker)
Claire Heathfield Tel: [phone]



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