Investment Update

CARPATHIAN PLC

("Carpathian" or the "Company")

Investment Update

Following its strategy to return value to shareholders in the medium term as announced on 1st May 2009 further to the company's strategic review, Carpathian wishes to provide an update on the progress achieved to date.

Two potential sale transactions are currently being explored.

Carpathian's "Blue Knight Portfolio" of provincial shopping centres across Poland is under offer for sale. The buyer's due diligence process is advancing.

Meanwhile, following the receipt of a number of offers through a competitive bid process for the prime shopping centre asset of Promenada, in Warsaw, one party has been selected as a potential buyer. An extensive due diligence process is now due to commence.

The due diligence and contract negotiation periods within the Polish market can typically take several months before any conclusion is reached.

The aggregate prices currently offered for the above assets are close to the 2009 year end valuations.

In the event that these particular negotiations fail to successfully complete, it is Carpathian's intention to engage with other investors active within the Polish market to arrange sales on similar terms.

Meanwhile, trading performance of the portfolio as a whole continues in line with expectations. Exceptions to this are Macromall (Brasov, Romania) and Antana Business Park (Budapest, Hungary), which continue to struggle with low occupancy levels.

Discussions continue with investors showing mixed interest in other assets within the Carpathian portfolio.

The Company will provide a further update to shareholders as appropriate.