INVESTMENT UPDATE

TAU CAPITAL PLC

("Tau" or "the Company")

15 October 2010

INVESTMENT UPDATE

Tau today announces that it has increased its interest in Alem Communications Holding LLP ("Alem"), an existing portfolio company, by purchasing an additional stake in DTV Investment Holding LLP ("DTVI"), the holding company through which Tau invests in Alem, in the amount of $1.0 million. The purchase was from Erjan Tungushbaev, one of the founders of DTVI. 

Alem is an operator and provider of cable TV, internet and telecommunications services in Kazakhstan. By the end of June 2010, Alem had reached over 450,000 homes passed for cable TV services, 120,000 homes passed for fixed broadband services, and 230,000 homes passed for mobile broadband (WiMax) services. Alem had over 160,000 cable TV subscribers across various TV services. Alem's rapid expansion into most major urban centres across Kazakhstan, including Almaty, Astana, and Aktau continues, as its subscriber base and branch network continue to grow.

Tau's cumulative investment in DTVI is structured through both direct equity investments and shareholder loans, the combination of which provides Tau with a larger economic interest than its equity capital ownership. On completion of this transaction, Tau's economic interest in DTVI has increased from 55.24% to 65.09%. The total holding that DTV has in Alem is 28.94%.

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