Reduction of Capital

23 November 2012

Dragon-Ukrainian Properties & Development plc

("DUPD" or the "Company" and together with its subsidiaries, the "Group")

Reduction of Capital

At the extraordinary general meeting on 14 November 2012 shareholders granted DUPD authority to apply to the High Court in the Isle of Man to approve a reduction of capital in accordance with the Isle of Man Companies Act 1931 to cancel the shares which DUPD bought back through a series of on-market transactions made between August 2008 and May 2009, and in response to three public tender offers made respectively on 4 June 2009, 25 October 2011 and 6 December 2011.

A letter has been sent to the identifiable former DUPD shareholders who participated in the transactions mentioned above, and a copy of the letter will be available on the Company's website: http://dragon-upd.com/investor-information/important-information/announcements

The application to the Isle of Man courts has been listed to be heard on 18 December 2012. 

For further information, please contact:

 Dragon-Ukrainian Properties & Development plc (www.dragon-upd.com)

Tomas Fiala

+380 44 490 7120

Dragon Capital Partners Limited (Investment Manager)

Chris Kamtsios

+380 44 490 2021

Panmure Gordon (UK) Limited (Nominated Adviser and Broker)

Richard Gray / Andrew Potts

+44 (0)20 7886 2500