Kimberly Enterprises Regulatory News (KBE)

24 Jul 2006 11:09

Engel East Europe N.V.24 July 2006 24 July 2006 ENGEL EAST EUROPE N.V. Entering Romania with a new project for the development of several thousands of residential units Engel East Europe N.V. ("Engel East Europe" or "the Company"), the AIM-listedCentral and Eastern European ("CEE") residential property developer (EEE:L), ispleased to announce that it has signed a memorandum of understanding ("MOU") fora percentage deal (the main part of the payment for the land will be set as apercentage of the proceeds of the project) for a new project in a centrallocation in Romania for the development of a neighborhood consisting of severalthousand of residential units. The project will be built in several stages. The Company has identified the potential of the residential market in Romaniaand, following a thorough investigation process, has established an operatingcapability there. After completion of the final agreements, this project will bethe Company's first residential development in Romania. The scope of the project will be decided following completion of a due diligenceprocess, which will involve both economic analysis and a design examination.This process is scheduled to start within the next few days, and following itssatisfactory completion, the Company and the sellers intend to enter into adefinitive agreement regarding the project and its scope. Signing of the final agreement is subject to the completion of further duediligence by the company which will also start within the next few days. Engel East Europe is in continuing negotiations for the purchase of additionalparcels of land for the development of thousands more residential unitsthroughout the CEE Region, both in countries it is already active in as well asin new countries such as Romania. Jacob Engel, founder and Executive Chairman, said: "We are delighted to announce this latest development project, which we believeis one of the largest projects in Romania with projected scope of sales ofseveral hundred million Euros. Entering Romania - a promising market - is a result of our long involvement inthe CEE residential property market and our intense analysis of the potentialmarkets in the region. This complements our strategy of further expanding ouractivities in both existing and new potential markets and taking full advantageof the considerable growth opportunities for residential property development inthe CEE region'." Enquiries Citigate Dewe RogersonSally Marshak / George Cazenove / Hannah Seward+44 20 7638 9571 Notes to editors Engel East Europe listed on AIM in December 2005 and is an internationalresidential property developer incorporated in The Netherlands. The Companyoperates in CEE Region and has various developments in Hungary, the CzechRepublic, Poland, Bulgaria and Serbia, as well as operations in Germany andCanada. Not including the a.m. project, Engel East Europe is currently involvedin the development of more than 11,000 residential units and is in negotiationsto purchase land for the development of thousands of additional units throughoutthe CEE Region. This information is provided by RNS The company news service from the London Stock Exchange