Final Results

EASTERN EUROPEAN PROPERTY FUND LIMITED

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009

HIGHLIGHTS

·; Property valued by DTZ Debenham Tie Leung at £27.7 million (2008: £31.2 million).

·; Net asset value at 31 December 2009 of £21.4 million, 110.44p per Ordinary Share (2008: £24.7 million, 127.21p per Ordinary Share).

·; Loss for the year ended 31 December 2009 of £2.8 million, equal to a loss of 14.49p per Ordinary Share (2008: profit of £1.1 million, equal to 5.68p per Ordinary Share).

·; Loss on revaluation of investment properties (after accounting for the foreign exchange loss) of £4.1 million (2008: gain of £4.9 million).

·; 37% decrease in operating expenses from 2008 and a 17% decrease in operating expenses (excluding performance fees and interest payable) from 2008.

·; Proposed amendment to strategy, including divestment from Bulgaria and Romania, further investment in Turkey and buy-back of Ordinary Shares.

For further information please visit www.eepfl.com or contact:

Azhic Basirov / Siobhan Sergeant

Smith & Williamson Corporate Finance Ltd

Tel: +44 207 131 4000

Steve Pearce

Liberum Capital Limited

Tel: +44 203 100 2000

Bob Locker

CNC Property Fund Management Ltd

Tel: +44 1784 424 784

Keiran Gallagher / Ollie Cadogan

Active Property Investments Ltd

Tel: +44 1481 731 987

CHAIRMAN'S STATEMENT

2009 commenced amidst extremely challenging circumstances in Eastern European property markets. The Group has not been immune to these conditions but the Group's Turkish property portfolio has performed significantly better than its properties in Bulgaria and Romania.

Results

The Group reported a net loss for the year ended 31 December 2009 of £2.8 million (2008: profit of £1.1 million), representing a loss per Ordinary Share of 14.49p (2008: earnings of 5.68p). The loss for the year was mainly attributable to the £4.1 million loss (2008: gain of £4.9 million) arising from the revaluation of investment property, of which £1.3 million (2008: profit of £8.5 million) related to losses arising from foreign exchange movements.

The consolidated net asset value at 31 December 2009 was £21.4 million, 110.44p per Ordinary Share (2008: £24.7 million, 127.21p per Ordinary Share).

Despite the continued difficult economic climate, the share price of the Group remained largely unaffected during the year, falling by only 1.50p to 52.50p at 31 December 2009 (31 December 2008: fall of 40.00p during the year to 54.00p).

The discount of the share price to the Net Asset Value ("NAV") narrowed slightly during the year from 57.55% at 31 December 2008 to 47.54% at 31 December 2009. This is still much wider than the Board would wish and thus the Board is proposing a property rationalisation and share buy-back scheme as part of the strategy proposal outlined below.

Strategy

Although there are signs that the global economy is starting to recover from the recent recession, Turkey is faring significantly better than Bulgaria and Romania. In addition, the opportunities to add to the portfolio in Bulgaria and Romania have been extremely limited, and thus the Group has not been able to achieve the benefits in either location that a larger portfolio would have provided.

Therefore, as announced on 23 April 2010, the Board, following discussions with shareholders and its advisors, proposes that the Group divests from Bulgaria and Romania and focuses its resources entirely on Turkey. This will remove the overhead and administrative costs arising from operating in Romania, Bulgaria, Malta and Cyprus and reduce the overall overhead costs of the Group.

It is intended to fill the voids on the back of improving rental incomes in both Bulgaria and Romania and then dispose of both properties within the coming months. The proceeds from the sale of the Bulgarian and Romanian properties may be used to undertake share buy-backs and, if projected returns are sufficient, to invest further in the Turkish property market.

Additionally, it is proposed that the continuation vote on the Company be brought forward by one year to September 2012 and that the current fee structure be replaced with one that provides more emphasis on a rebased performance fee and less on annual management fees. These proposed changes will be contained in the resolutions to be placed before shareholders at the forthcoming Annual General Meeting.

On 23 April 2010, we stated that we expected to provide further details of the Board's proposals to amend the Group's strategy with the announcement of results, however, the Board expects to do so in due course.

Operating Costs

I mentioned in my last report that the Board and its advisers had taken steps to implement a more streamlined and efficient structure. The Group has already benefitted from these initial steps in the form of reduced costs, with operating expenses (excluding performance fees and financing charges) being reduced by 17% from 2008. Including the effect of the reduced interest rates, the Group's total operating costs have decreased by £1 million (37%) from 2008.

The Board is committed to identifying all possible areas of cost savings for the Group and is hopeful that, with the strategy outlined above, further cost savings can be made.

Property

During the year, the Group purchased one small property, the Taka Building, in Istanbul and continued to refurbish the Turkish portfolio to maximise the value of its assets.

The Group has focused on increasing the value of the portfolio by initiating extensive redevelopment and refurbishment of two of its largest Turkish properties. The construction work is expected to be finished in the second half of 2010 and will significantly increase the rental and earnings potential of the buildings.

Property values in the Group's Target Countries declined during the year and the Group suffered a net unrealised loss on revaluation of investment properties of £4.1 million (2008: gain of £4.9 million), including a foreign exchange loss on property of £1.3 million (2008: profit of £8.5 million). Further details of the properties are disclosed in the Property Manager and Adviser's Report.

Loan Facility

The US$17.5 million loan facility that the Group's Turkish subsidiary has with HSBC Bank plc (the "Bank") contains financial and other covenants, including the requirement that the loan to value ("LTV") of the Turkish properties charged to the Bank, which comprise all of the Turkish properties with the exception of the "Yellow" Building, Gonul Sokak and the Taka Building, would not exceed 50%. At 31 December 2008, the LTV ratio was in excess of the 50% LTV covenant. Following negotiation with the Bank, a side letter and pledge agreement were signed in May 2009 whereby the Group's Turkish subsidiary pledged US$4 million of a cash deposit to the Bank and is only able to draw on this cash deposit to purchase new property in Turkey.

The side agreement and pledge to the Bank are still in place and, at 31 December 2009, the Group complied with its LTV covenant.

Following a review by the Bank in April 2010, the amount pledged by the Group to the Bank was reduced to US$2,545,000.

Dividend

The Board carefully considered the payment of a dividend for the year ended 31 December 2009. However, as the Directors are proposing to divest from Bulgaria and Romania and, with the proceeds, plan to invest further in Turkey and also buy-back shares, the Board considers it prudent to conserve funds and does not propose an interim or final dividend for the year ended 31 December 2009 (2008: nil).

Directorship Changes

At the Annual General Meeting held on 10 September 2009, the Ordinary Resolution to re-elect Richard Barnes as a Non-Executive Director was not passed. I would like to take this opportunity to thank Richard for his valuable contribution since the Group's launch in 2006.

Investing Policy

Following the changes to the AIM Rules for Companies, during the year, the Group replaced its Investment Objective and Investment Policy with the Investing Policy noted in the Annual Report and Financial Statements and on the Group's website.

Outlook

Following the comparatively slow rate of recovery expected of the Bulgarian and Romanian property markets, the Board has set in motion a strategy for the exit from both markets. It is expected that, following this, the fortunes of the Group will be significantly enhanced as our core strength and expertise will be focused in the more vibrant and prestigious areas of Istanbul. This, coupled with prospective higher rental income from the completion of major renovation works and the general recovery in Turkey from the recent recession, lead me to believe that the outlook for the Group is positive in the medium-term.

The Board and its advisers believe that the forthcoming year will be challenging in respect of the implementation of the proposed strategy. However, the Board is confident that it will be able to manage the necessary changes effectively and in the best interests of shareholders.

Charles Parkinson

Chairman

14 May 2010

PROPERTY MANAGER AND ADVISER'S REPORT

During the year ended 31 December 2009, the Group continued to experience difficult trading conditions, which varied significantly between the different geographical regions. Whilst Turkey showed signs of greater economic resilience, this contrasted with the rapid decline of economic conditions in Romania and Bulgaria.

Despite a tough year economically in Turkey, the property portfolio overall has performed well and the majority of the space available for letting has been occupied. The various refurbishment and regeneration projects have all progressed and the Group has suffered very few tenant defaults. The Turkish Lira has also recovered much of its previous year decline against the US Dollar, which has helped the Group's tenants in Turkey.

The economic climates of Romania and Bulgaria have become more difficult as these countries have experienced similar trading conditions to those that existed in the United Kingdom twelve months previously. Fortunately we believed that conditions in Romania and Bulgaria would prove to be difficult and that property in Turkey would offer more attractive returns, and therefore the Group's exposure to Romania and Bulgaria has been limited to one property in each location.

Both Romania and Bulgaria have suffered from the rapid decline in inward investment as a result of difficult global economic conditions. Romania has had a particular problem arising from the decline in its local currency, which has affected local consumers who tend to have loans in Euros or Swiss Francs. The corruption issues associated with the highest levels of the Bulgarian government and administration have caused the European Union to withhold further substantial infrastructure grants.

In Romania, the Group's single tenant decided to relinquish its occupation of the logistics premises, the Transalkim Warehouse, as of 31 January 2010 and we are actively seeking new tenants.

In Bulgaria, the Group lost one of the two tenants at its George Washington Street property in Sofia in the second half of 2009 and has taken over the remaining sub-tenancies put in place by that tenant. United Bulgarian Bank, the main tenant, remains in occupation.

In both Romania and Bulgaria the location of our property remains a primary attribute and we are confident that new lettings will be achieved in the near future. It is inevitable that there will be pressure on rent levels, but this is likely to take the form of 'incentives' to occupy, as opposed to substantial drops in rent levels. At the time of writing, local agents have indicated that they do not expect the existing rent levels of the Group's properties to come under pressure.

Property Portfolio

The principal success of 2009 proved to be the resilience of the property portfolio in Beyoglu, Istanbul, Turkey where the leased income improved by 4% (in Turkish Lira terms) over the twelve month period, compared to 2008. Currently, 64% of the Group's 8,981sqm of floor space in Turkey has been let, with the majority of the remaining space in the process of being renovated and not yet available for letting. With the enduring pressure of declining property trading and letting conditions elsewhere, the Group's portfolio in Beyoglu continued to benefit from its central location and proximity to Istiklal Street, which remains at the centre of various regeneration projects and initiatives.

The Group has made progress with its renovation and refurbishment projects and has won a legal case to recover vacant possession of the Ravuna Apartments in Istiklal Street, which will enable it to begin its renovation of that property during 2010.

Current Holdings

Market Values

31 December 2009

31 December 2008

£'000

£'000

Bulgaria

24 George Washington Street, Sofia

Leisure/Office

3,636

5,315

Romania

Transalkim Warehouse, Gara Progresului Street, S Bucharest

Industrial

3,158

3,996

Turkey

Kadife Palas Building, 134-139 Susam Street, Cihangir, Istanbul

Leisure/Office/Residential

2,474

2,515

6th Floor, The Misir Building, Istiklal Street, Beyoglu, Istanbul

Office

2,041

2,172

Ravuna Apartments, 401 Istiklal Street, Beyoglu, Istanbul

Office/Retail

3,207

3,289

Markiz (Oriental) Passage, Istiklal Street, Beyoglu, Istanbul

Leisure/Office/Retail

9,276

10,574

Nil Passage, Istiklal Street, Beyoglu, Istanbul

Leisure/Office/Retail

1,351

1,179

Pera Residence, Asmalimescrit Street, Beyoglu, Istanbul

Retail

1,268

1,336

"Yellow" Building, Asmalimescrit Street, Beyoglu, Istanbul

Retail

235

240

Gonul Sokak, Asmalimescrit Street, Beyoglu, Istanbul

Retail/Office

507

589

Taka Building, Asmalimescrit Street, Beyoglu, Istanbul

Retail

556

-

------------

------------

20,915

21,894

------------

------------

Total Investment Properties

27,709

31,205

------------

------------

24 George Washington Street, Sofia, Bulgaria (Leisure/Office)

The United Bulgarian Bank remains in occupation under a lease for approximately 50% of the building. Bulgarian Property Management previously held a lease for the balance. However, it had difficulty maintaining occupancy throughout all of its leased areas and, despite the Group providing assistance to try to help it through the difficult trading conditions, Bulgaria Property Management was unable to meet the lease payments. Consequently its lease was brought to an end during 2009. The Group has taken over its two remaining sub-tenancies, including the Bulgarian National Art Centre, which occupies most of the ground floor. The Group is marketing the void space (five units on the top floors, which accounts for 31% of the property by floor area), via local agents.

Transalkim Warehouse, Gara Progresului Street, S. Bucharest, Romania (Industrial)

The three-year lease to Transalkim expired on 31 January 2010 and the tenant has relocated entirely to its new facility. On the lease's conclusion, the Group signed three very short-term leases for approximately 10% of the space. Although two of these finished at the end of March, the Group is hoping to sign a longer-term lease with the remaining tenant, a global group, for approximately 10% of the office space and 5% of the warehousing space. The Group continues to market the rest of the property via local agents.

Kadife Palas Building, 134-139 Susam Street, Cihangir, Istanbul, Turkey (Leisure/Office/ Residential)

During 2009 the Group let the remainder of the vacant space in this property. The Group has spread the risk of tenant default through the letting of this property to six different tenants. The main restaurant continues to trade well.

6th Floor, The Misir Building, Istiklal Street, Beyoglu, Istanbul, Turkey (Office)

The property remains fully occupied and is let to two tenants.

Ravuna Apartments, 401 Istiklal Street, Beyoglu, Istanbul, Turkey (Office/ Retail)

The tenant appealed to the High Court against the Group's possession case. However the Group won the case in late 2009 and has taken possession of the premises with the intention of carrying out its major refurbishment and upgrading during 2010.

Markiz (Oriental) Passage, Istiklal Street, Beyoglu, Istanbul, Turkey (Leisure/Office/Retail)

The principal tenants remain in occupation as the Group pursues its renovation and upgrade proposals for leisure use on the upper floors. The proposed apart-hotel project has proved to be unviable as consent requirements appear to be too onerous and costly to implement. However, these issues are being taken forward by local specialists and the Group is looking for potential new tenants for the upper floors.

Nil Passage, Istiklal Street, Beyoglu, Istanbul, Turkey (Leisure/Office/Retail)

All the commercial occupiers on the upper floors have vacated and the Group is obtaining quotes for the renovation of the individual offices prior to re-letting. The external facades of the building have already been refurbished.

Pera Residence, Asmalimescrit Street, Beyoglu, Istanbul, Turkey (Retail)

The single restaurant operator continues to trade successfully.

"Yellow" Building, Asmalimescrit Street, Beyoglu, Istanbul, Turkey (Retail)

The Group has been seeking to work with the adjoining owner to enhance the overall project proposals for this building.

Gonul Sokak, Asmalimescrit Street, Beyoglu, Istanbul (Office/ Retail)

The office tenant has vacated and this element of the property is currently being marketed. The retail tenant continues to trade well.

Taka Building, Asmalimescrit Street, Beyoglu, Istanbul, Turkey (Retail)

The Taka Building is fully let as the ground floor has been let to a small bar operation, which has been trading well.

Regional Overview

Romania

On 6 December 2009, the incumbent centre-right PD-L (Democratic Liberal Party) President won the second round run-off election, beating the centre-left PSD (Social Democratic Party) candidate in a very close count and a PD-L led government is now in power. This has brought some stability after months of political wrangling and Fitch has raised Romania's rating outlook from "negative" to "stable".

According to Fitch ratings agency director, David Heslam, the improvement of foreign economic and financial conditions, adjustment of the 2009 current account deficit beyond expectations, going past the risk posed by elections, the enforcement of the 2010 budget and expectations to resume normal relationships with the IMF have reduced pressure on Romania's rating..

When the global recession hit, Romania's government turned to the international community for assistance and received a €12.9 billion loan from the IMF in March 2009 as part of a co-ordinated financial support package of €20 billion. This programme has protected the lowest paid and boosted social spending, in order to protect the most vulnerable through this difficult period.

The IMF has forecast that economic growth for Romania will be 1.3% for 2010. However, this mainly reflects the recovery of external markets and the Romanian economy remains under pressure. Rental levels for Bucharest's main shopping streets, Calea Victoriei and Magheru, fell by 46.2% and 42.3% respectively in the past year, to €70-€75/sqm/month, according to a recent Cushman & Wakefield report. Despite the sharp downturn, inflation remained relatively high at 4.7% at the end of 2009, which was slightly above the upper limit of the National Bank of Romania's inflation target. However, the IMF expected inflation to ease to around 3.5% by the end 2010 on the back of the implementation of a prudent monetary policy.

Bulgaria

Bulgaria's current account deficit contracted almost threefold in 2009 (according to preliminary estimates by the Central Bulgarian Bank) against a background of the global financial and economic crisis. However, the National Statistics Institute has stated that the Bulgarian economy shrank by 6% (in real terms) in the fourth quarter of 2009 and 5% over the course of the whole of 2009.

Consumption, which had been one of the main drivers of economic growth in previous years, decreased by 6.2% in 2009 and exports shrank by 9.8%, year-on-year, while imports were down by an annual 22.3%. However, at the end of December 2009, the current account deficit was €2.9 billion, a significant decrease from the current account deficit of €8.6 billion at the end of 2008. The two figures represent 8.62% of GDP for 2009 and 25% for 2008.

The Bulgarian Finance Minister, Simeon Dyankov, recently explained to the Bulgarian Parliament that the economic recovery was underway and that the budget deficit was expected to narrow in May. However, many economists disagree with this view and the economic crisis continues to hit Bulgaria severely. This has been exacerbated by its currency board regime, which prevents adjustments of the Lev against the Euro.

Turkey

Like many countries, the Turkish economy has been affected by the global financial crisis, with GDP decreasing by an estimated 5.6% in 2009. However, in January 2010, Fitch upgraded Turkey's sovereign debt from BB- to BB+. In addition, The Economist reported that Turkey had weathered the credit crunch better than other emerging economies and, partly due to its tough regulation, the Turkish banks have few toxic assets and limited mortgage exposure, so the government has not had to divert public money to rescue banks.

The Turkish economy is close to agreeing standby terms with the IMF. However, the government appears to be trying to resist signing as, in some respects, it could be seen as an admission of economic weakness.

Although the economic conditions in Turkey seem to be relatively stable, the government appears to have locked horns with the military elite and middle classes, who see themselves as the guardians of the secular state and who constantly seek to undermine the government's pro-Islamic stance. The government, in turn, is seeking to reduce the power base of the military and this scenario is likely to repeat itself over time as part of a permanent power transfer to the civil government.

There had been concern in the first quarter of 2010 that the market crisis could spread from Greece to Turkey. However, economists have commented that the fundamentals of the Turkish economy are sound and many property agents have reported an increased number of sales in Istanbul (as a whole) in 2010, compared to 2009, an encouraging sign that the economy is improving. Predictions for growth in 2010 are 4-5% as tourism and other sectors have been relatively resilient during the economic crisis.

Prospects

It is expected that the Bulgarian and Romanian property markets will experience a slow rate of recovery. However, we anticipate that the value of the Group's property in Turkey will remain stable in US Dollar terms in 2010 as confidence in the Turkish economy improves and the Group continues to benefit from the location of these properties.

We continue to view the Group's positions in Turkey very positively, as they provide continued opportunities for growth in overall returns. However, we believe that opportunities in Romania and Bulgaria are limited and so we plan to divest the holdings in Romania and Bulgaria in order to concentrate the Group's resources on Turkey.

Bob Locker

CNC Property Fund Management Limited

Keiran Gallagher

Oliver Cadogan

Active Property Investments Limited

14 May 2010

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2009

Year ended 31 December 2009

Year ended 31 December 2008

£'000

£'000

Income

Rent receivable

1,610

1,499

Bank interest receivable

46

261

Other income

16

36

------------

------------

Total income

1,672

1,796

------------

------------

Expenses

Administration fees

(125)

(125)

Management fees

(594)

(571)

Performance fee

-

(475)

Interest payable and similar charges

(398)

(712)

Other operating expenses

(678)

(987)

------------

------------

Total expenses

(1,795)

(2,870)

------------

------------

Investment gains and losses

(Loss)/gain on revaluation of investment properties

(4,102)

4,866

------------

------------

Total investment (loss)/gain

(4,102)

4,866

------------

------------

Net (loss)/profit from operating activities before gains and losses on foreign currency exchange

(4,225)

3,792

Gain/(loss) on foreign currency exchange

1,135

(2,023)

------------

------------

Net (loss)/profit from operating activities

(3,090)

1,769

Taxation

280

(653)

------------

------------

(Loss)/profit for the year

(2,810)

1,116

Other comprehensive income

Exchange differences arising from translation of foreign operations

(443)

312

------------

------------

Total other comprehensive (loss)/income

(443)

312

------------

------------

Total comprehensive (loss)/income for the year attributable to the Owners of the Group

(3,253)

1,428

------------

------------

(Loss)/earnings per share - basic and diluted

(14.49)p

5.68p

------------

------------

All the items in the above statement are derived from continuing operations.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to Owners of the Company

for the year ended 31 December 2009

Share capital

Reserve for own shares

Distributable reserves

Foreign exchange translation reserve

Total

£'000

£'000

£'000

£'000

£'000

Net assets at 1 January 2009

200

(497)

24,047

918

24,668

Total comprehensive loss for the year

Loss for the year

-

-

(2,810)

-

(2,810)

Other comprehensive loss

-

-

-

(443)

(443)

----------

----------

----------

----------

----------

Net assets at 31 December 2009

200

(497)

21,237

475

21,415

----------

----------

----------

----------

----------

for the year ended 31 December 2008

Share capital

Reserve for own shares

Distributable reserves

Non-distributable reserves

Foreign exchange translation reserve

Total

£'000

£'000

£'000

£'000

£'000

£'000

Net assets at 1 January 2008

200

-

17,174

5,757

606

23,737

Re-designation of non-distributable reserves

-

-

5,757

(5,757)

-

-

Total comprehensive income for the year

Profit for the year

-

-

1,116

-

-

1,116

Other comprehensive income

-

-

-

-

312

312

Contributions by and distributions to owners

Purchase of own shares for treasury

-

(497)

-

-

-

(497)

----------

----------

----------

----------

----------

----------

Net assets at 31 December 2008

200

(497)

24,047

-

918

24,668

----------

----------

----------

----------

----------

----------

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2009

31 December 2009

31 December 2008

£'000

£'000

Non-current assets

Freehold investment property

27,709

31,205

Property, plant and equipment

33

39

Advances for fixed assets

-

15

Intangible assets

10

12

Deferred tax assets

62

-

Cash pledged to bank

2,474

-

----------

----------

30,288

31,271

Current assets

Trade and other receivables

538

1,101

Tax assets

15

57

Cash and cash equivalents

2,389

6,428

----------

----------

2,942

7,586

----------

----------

Total assets

33,230

38,857

----------

----------

Current liabilities

Trade and other payables

(212)

(927)

Overseas corporate tax

(22)

(98)

Bank loan

-

(11,932)

----------

----------

(234)

(12,957)

Non-current liabilities

Rents received in advance

(221)

(217)

Deferred tax liabilities

(539)

(968)

Other provisions and payables

(40)

(47)

Bank loan

(10,781)

-

----------

----------

(11,581)

(1,232)

----------

----------

Total liabilities

(11,815)

(14,189)

----------

----------

Net assets

21,415

24,668

----------

----------

Capital and reserves

Called-up share capital

200

200

Reserve for own shares

(497)

(497)

Distributable reserves

21,237

24,047

Foreign exchange translation reserve

475

918

----------

----------

Total equity attributable to owners of the Group

21,415

24,668

----------

----------

Net Asset Value per Ordinary Share - basic and diluted

110.44p

127.21p

----------

----------

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31 December 2009

Year Ended 31 December 2009

Year Ended 31 December 2008

£'000

£'000

Net (loss)/profit from operating activities

(3,090)

1,769

Adjustments for:

Bank interest receivable

(46)

(261)

Loss/(gain) on revaluation of investment properties

4,102

(4,866)

(Gain)/loss on foreign currency exchange

(1,135)

2,023

Amortisation and depreciation

8

(10)

Amortisation of bank loan fees

18

-

Bank loan interest payable

370

660

----------

----------

Net cash inflow/(outflow) from operating activities before working capital changes

227

(685)

Decrease/(increase) in trade and other receivables

563

(166)

(Decrease)/increase in trade and other payables

(683)

85

Increase in other non-current liabilities

33

98

Interest received in the year

46

261

Interest paid in the year

(380)

(439)

(Tax paid)/tax refund received in the year

(111)

107

----------

----------

Net cash outflow from operating activities

(305)

(739)

Investing activities

Acquisition and development of investment property

(496)

(2,288)

Purchase of property, plant and equipment

(96)

(10)

----------

----------

Net cash outflow from investing activities

(592)

(2,298)

Financing activities

Cash pledged to bank

(2,474)

Purchase of own shares

-

(497)

----------

----------

Net cash outflow from financing activities

(2,474)

(497)

----------

----------

Decrease in cash and cash equivalents

(3,371)

(3,534)

----------

----------

Cash and cash equivalents at beginning of year

6,428

8,008

Decrease in cash and cash equivalents

(3,371)

(3,534)

Foreign exchange movement

(668)

1,954

----------

----------

Cash and cash equivalents at end of year

2,389

6,428

----------

----------