Strategy Update

Eastern European Property Fund Limited (the "Company")

Strategy Update

Following consultations with major shareholders and advisers, and as part of the review of strategy, the Board intends to seek shareholder approval at its next Annual General Meeting to implement the following measures:

·; The bringing forward of the continuation vote on the Company by one year to September 2012;

·; For the shortened life of the Company, a change of its Investing Policy to allow a more focused, Istanbul based portfolio to be held;

·; The use of any property disposal proceeds in the buying back of ordinary shares in the Company for cancellation, through purchases in the market and/or through tender offers, if the returns generated by such buybacks are anticipated to be greater than those forecast to be achieved through reinvestment. It is anticipated that, subject to sufficient liquidity in the shares, the Board would commence a buyback of shares if the current 56.6% discount of share price to net asset value persists; and

·; A reduction in management fees and consequent restructuring of performance fees to align any performance fees with the return of cash to shareholders.

The Board expects to provide further details regarding the proposals with the announcement of the preliminary results of the Company for the year ended 31 December 2009 which is expected to be made in mid May 2010. It is anticipated that the Annual General Meeting will be convened in June 2010.

Shareholders are reminded that Spearpoint Limited ("Spearpoint") has an interest in 29.99% of the Company's issued share capital through customers' funds that it manages on a discretionary basis. Pursuant to Note 1 of Rule 37.1 of the City Code on Takeovers and Mergers ("the Takeover Code"), if Spearpoint's interest in the Company, through its discretionary managed funds, exceeds the 30% limit in Rule 9.1, simply as a result of the Company undertaking a buyback of ordinary shares, Spearpoint will not incur an obligation to make a mandatory offer for the Company.

Enquiries:

23 April 2010