DUPD.L Regulatory News (DUPD)

5 August 2013

Dragon-Ukrainian Properties & Development PLC

("DUPD" or the "Company")

Investment in Arricano Real Estate PLC

Dragon-Ukrainian Properties & Development plc notes the announcement issued on 2 August 2013 in relation to Arricano Real Estate PLC ("Arricano") regarding its intention to seek admission to the Alternative Investment Market of the London Stock Exchange plc ("AIM").

Arricano and its subsidiaries are amongst the leading real estate developers in Ukraine and specialise in operating shopping centres. Arricano is engaged in all cycles of retail real estate development, from acquisition of land plots for development to delivery and operation of shopping centres.

The Company's final results announcement for the year ended 31 December 2012, released on 2 May 2013, stated that Arricano was considering an IPO in 2013.

DUPD holds a 16.67% direct interest in Arricano, equating to 10,770,000 ordinary shares. As disclosed in Arricano's AIM Schedule 1 announcement, DUPD also holds a 20% interest in Weather Empire Limited, which DUPD acquired in July 2013. Weather Empire Limited holds a 16.67% interest in Arricano. DUPD's indirect interest in Arricano through Weather Empire Limited is therefore 3.33%, which together with DUPD's direct 16.67% interest, provides DUPD with a current 20% interest in Arricano.

The AIM Schedule 1 announcement refers to a proposed issue price for new shares in Arricano at US$2.33 per share. At this price, DUPD's 20.0% shareholding (direct and indirect) would be valued at US$30,112,920, as compared to the carrying value at 31 December 2012 in DUPD's financial statements of US$32,716,000.

Volodymyr Tymochko, a representative of Dragon Capital Partners Limited, DUPD's Investment Manager, has been appointed a director of Arricano, and will be the Company's representative on the Arricano board of directors.

A further update will be provided in due course.

For further information, please contact:

This press release does not constitute an offer to buy or to subscribe for, or the solicitation of an offer to buy or subscribe for, Ordinary Shares to any person in any jurisdiction in which such an offer or solicitation is unlawful. In particular, the Ordinary Shares have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States or under the applicable laws of the United States, Australia, Canada, Japan and South Africa (the "Restricted Territories") and, may not be offered or sold within the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act ("Regulation S")) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, or to any national, resident or citizen of other Restricted Territories. The Ordinary Shares are being offered and sold outside the United States in accordance with Regulation S. Neither this press release nor any copy of it may be distributed directly or indirectly to any persons with addresses in the United States (or any of its territories or possessions), other Restricted Territories, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement.