Issue of legal proceedings

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Metro Baltic Horizons plc

Issue of legal proceedings

For immediate release

8 October 2012

The board of Metro Baltic Horizons plc ("MBH" or the "Company") announces that the Company has issued legal proceedings against its former directors and professional advisers, including MCM and its principal, Mart Habakuk, and TAS (formerly Metro Frontier Limited, a wholly owned subsidiary of MCM) and its former principal, James Kenny. 

Together with two if its wholly owned subsidiaries, Pedragon Investments Limited and Goldbrick Investments Limited, the Company has issued legal proceedings in the High Court of Justice of the Isle of Man against Mr Robin James, Ms Kristel Meos, Mr Gunner Okk, Tolmain Advisory Services Limited (formerly Metro Frontier Limited), Metro Capital Management AS, Mr Mart Habakuk, Mr James Kenny, Mr Paul McGuinness, M G Capital Limited and McGuinness Investments OU.

The claims are for damages for negligence, breach of contract and/or breach of fiduciary duty (as applicable) arising out of the actions of the Defendants, in particular, that the Defendants (or certain of them together or separately) between 2007 and 2009 caused the Company's subsidiaries to enter into a series of detrimental property and related financial transactions, as a result of which the Group sustained substantial losses, currently estimated to be approximately €26.6m.

Ronan Reid, Chairman, MBH, commented: "The launch of the legal proceedings announced today underlines our determination to recover on behalf of our shareholders the losses that were caused to Metro Baltic Horizons by reason of the actions and inaction of its former directors and professional advisers."

Enquiries

MBH Holdings PLC

Ronan Reid Tel: +353 1 6333843

Fairfax I.S. PLC Nominated Adviser

James King, David Floyd Tel: 020 7598 5368

Further Information

This announcement will be available on MBH's website http://www.metrobaltichorizons.com/ as soon as practicable in accordance with AIM Rule 26.