Statement re. Suspension

Engel East Europe N.V.

("Engel" or the "Company")

Parent Company Update, Publication of Annual Report and Lifting of Suspension

Engel Resources and Development Limited

Further to the announcement issued on 21 April 2011, Engel East Europe N.V. ("Engel" or "the Company"), the AIM listed Central and Eastern European property developer (EEE.L), is pleased to announce that the agreement dated 7 July 2010 between GBES Ltd. (a company incorporated in Cyprus) ("GBES") and Engel Resources and Development Limited ("ERD"), the parent company of Engel General Developers Ltd.("EGD"), and EGD has received final approval from the District Court of Israel. Accordingly, GBES will now invest capital of approximately EUR 9.2 million for 53% of the enlarged share capital of ERD and will provide an additional credit line of approximately EUR 10.2 million to ERD.

GBES has agreed that Engel will be provided with sufficient financial resources to meet its short term working capital requirements, and ERD has initially made a short term loan of €250,000 to Engel. This will provide Engel with sufficient working capital to enable it to continue its programme of divesting itself from its non-core development projects and to focus on completing the development of the projects it believes will provide the best return for shareholders.

Annual Report

The Company is today sending to shareholders its annual report for the year ended 31 December 2010, which will shortly be available on the Company's website at www.engel-ee.com.

Lifting of Suspension

The Company is also pleased to announce that the suspension of its ordinary shares of €0.01 each ("Ordinary Shares") to trading on AIM is expected to be lifted with effect from 7.30 a.m. this morning, whereupon trading in the Ordinary Shares will recommence.

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