Investment Update

Eastern European Property Fund Limited ("the Company")

Investment Update

Eastern European Property Fund Limited announces the following developments in relation to two of its property investments.

The Company has previously announced that it had won its possession case against Mudo A.Ş. ("Mudo"), a tenant in one of its office and retail properties located on Istikal Street in Istanbul, Turkey, but that Mudo had filed an appeal with the Court of Appeal in Ankara. The Company is pleased to announce that the Court of Appeal has refused the request of Mudo and the initial eviction order has been upheld. As a result, the Company has proceeded with its eviction action and this will enable it to commence work on the major renovations originally anticipated now that the property has been vacated.

In its interim results for the six months ended 30 June 2009, the Investment Manager noted that Bulgaria Property Management, one of the tenants in the Company's property in Sophia, Bulgaria, was experiencing difficulties in the current market environment despite having sublet certain areas of the property. Following on from this, the Company has decided to terminate the lease contract and is in the process of seeking an alternative tenant. The other half of the property continues to be occupied by United Bulgarian Bank.

Enquiries:

2 February 2010