Update on residential project sales and marketing

15 July 2011

For immediate release

VinaCapital Investment Management Ltd Update on residential project sales and marketing

 Ho Chi Minh City - VinaCapital, the leading asset management and real estate development firm focused on Vietnam, announces today the results for sales and marketing of residential properties during the second quarter of 2011. During the three months ending 30 June 2011, a total of 246 sales contracts were signed, representing a value of USD16.7 million (Q1 2011: 235 contracts worth USD20.9 million). The sales contracts include cleared land and foundations for townhouses at Project Venus in Nha Trang, and villas and condominium units at three other residential projects currently under development in Danang and Ho Chi Minh City, as detailed below. Total reservations of over USD30 million were also signed during the period, exceeding expectations given current market conditions.  David Henry, Managing Director of VinaCapital's real estate division, said: "The market as a whole has slowed in Vietnam due to high interest rates, this has hurt both developers and home-buyers. Some developers have dropped prices by 40-50 percent in order to generate sales. We have maintained sales while actually increasing average selling prices over the period at some projects. It was therefore a successful quarter even though conditions did not allow us to match the sales recorded during Q1 2011. "The real estate market will, in general, remain slow during 2011 as interest rates are not expected to drop significantly until late in the year or early 2012. VinaCapital is well-placed to weather the temporary downturn and adjust its project launches to match market conditions. Our VinaLiving brand is already helping to generate a price premium on our competitors. "It should be noted that while the level of contracted sales is encouraging given the current economic circumstances, due to the residential real estate buying process in Vietnam, it will be some time before full payment is received in respect of the units sold and the cash subsequently becomes available at the VNL and VOF fund level," David said.

New residential developments in Vietnam are sold during the construction process, with payments received in instalments over a 12-18 month period.

Project Venus - township in Nha Trang, central VietnamVinaLiving has launched the first four phases of this township development in the central coastal city of Nha Trang. The four phases consist of 680 total land lots, ranging in size from 100-300sq.m. During Q2, some 193 sales contracts were signed, bringing total sales to 426 lots and over USD25 million since the project launched in early 2011. Average sale prices during Q2 2011 were up seven percent over the previous quarter. VNL and VOF own a combined 71 percent of Project Venus. Project Niagara - integrated resort in Danang, central VietnamSales are underway for units at three villa enclaves and one condominium tower at this award-winning 260-hectare integrated resort in Danang, central Vietnam. Total sales have reached a value of USD67.4 million, with average sale prices during Q2 2011 up 12 percent over the previous quarter. The quarter saw the launch of a high-end luxury villa enclave, with 13 of the 33 units already reserved for sale. A small 15-home enclave located off the beach sold out during the quarter. VNL and VOF own a combined 100 percent of Project Niagara. Project Danube - mixed-use development in Danang, central VietnamConstruction of the residential tower of this mixed-use urban development in downtown Danang has reached the 27th storey, with sales contracts signed for 47 units of the 225 units. The project recently announced the signing of an international-brand department store anchor tenant for the 48,000sq.m Phase 2 retail centre that is a key component of the project. Concept planning on the retail centre has already started, with a delivery date planned for the second quarter of 2013. The retail centre progress is expected to boost sales at the residential component. VNL and VOF own a combined 51 percent of Project Venus. Project Jupiter - township in Dong Nai province, near Ho Chi Minh CityApril saw the official launch event of this 200-hectare township project, with 32 new sales contracts signed during the quarter for a range of villas. To date, 152 out of 242 villas released have sold, a strong result given market conditions. VNL and VOF own a combined 72 percent of Project Jupiter. Upcoming project launchesDuring the second half of 2011, at least two major launch events are planned. The first, Project Mars, is a 30-hectare residential development in District 9, Ho Chi Minh City, in the same area that saw the successful launch and sale of a 53-villa development in 2009-2010. The second, Project Emerald, is a 29-villa, oceanfront project in Hoi An, south of Danang. The real estate assets described herein are owned by VinaLand Limited (VNL.L) and the VinaCapital Vietnam Opportunity Fund (VOF.L), two AIM-traded closed-end funds managed by VinaCapital Investment Management Ltd. VNL and VOF have invested in a 75/25 percent ratio, respectively, in all the residential development projects mentioned above.

 Forward-looking statements:This news release may contain statements that constitute forward-looking statements that include but are not limited to statements regarding the expected income generated from residential real estate sales of both built and unbuilt properties owned by funds managed by VinaCapital Group ("the Group"). Undue reliance should not be placed on forward-looking statements. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Group and described in the forward-looking statements. These risks and uncertainties include but are not limited to construction risks and delays, and unforeseen changes to general economic and business conditions. Forward-looking statements are based on the estimates and opinions of the Group's management at the time the statements are made. The Group assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law. About VinaCapital VinaCapitalis the leading investment management and real estate development firm in Vietnam, with a diversified portfolio of USD1.7 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of managing directors who bring extensive international finance and investment experience to the firm. Our mission is to produce superior returns for investors by using our experience and knowledge to identify the key trends and opportunities that emerge as Vietnam continues to develop its economy. To achieve this, VinaCapital has industry-leading asset class teams covering capital markets, private equity, fixed income, venture capital, real estate and infrastructure.  VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These funds are: VinaCapital Vietnam Opportunity Fund Limited (VOF), VinaLand Limited (VNL), and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the USD32 million DFJ VinaCapital L.P. technology venture capital fund with Draper Fisher Jurvetson.  VinaCapital has offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang, Phnom Penh (Cambodia) and Singapore. More information about VinaCapital is available at www.vinacapital.com.