Kimberly Enterprises Regulatory News (KBE)

Kimberly Enterprises N.V.

("Kimberly" or the "Company")

Potential Disposal

The Board of Kimberly, the AIM-quoted Eastern European residential property developer (KBE.L), announces that it has reached a conditional agreement (the "Agreement") to sell two plots of land held for residential development purposes in Canada for a total cash consideration of CAN$ 20.2m (approximately €13.6m). The properties are held (indirectly) by Montreal Residential Holdings Master Limited Partnership ("MLP"). Kimberly holds a 20% interest in future distributions of MLP.

The gross profit on completion of the sale by MLP is expected to be approximately CAN$ 9.4m (approximately €6.3m). The net cash proceeds of the disposals received by MLP is expected to be approximately CAN$ 18.7m (approximately €12.5m).

The net cash proceeds of the disposals will be distributed by MLP after completion of the disposals. Kimberly's share of the distribution will be 20%, equating to approximately CAN$ 3.74m (approximately €2.5m) and the gross profit of the transaction is expected to be approximately €1.26m which will be booked in the accounts of Kimberly under the "share of profit (loss) of equity-accounted investments, net of tax".

Based on prior agreements with Engel Resources and Development Ltd ("ERD"), all net proceeds generated from the Company's assets in Canada will be used to repay part of the outstanding debts of the Company to ERD, which stood at €24.6m as at 30 June 2015.

Completion of the Agreement is subject to due diligence by the purchaser on the properties. Upon the signature of the agreement, the buyer deposited a refundable deposit of CAN$ 2m (approximately €1.3m).

A further announcement will be made in due course.

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