Kimberly Enterprises Regulatory News (KBE)

29 Aug 2006 11:00

Engel East Europe N.V.29 August 2006 ENGEL EAST EUROPE N.V. New project of 100 luxurious residential units in Prague, Czech Republic 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 an agreement for the purchase ofadditional land in Prague, in the Czech Republic, for the development ofapproximately 100 luxurious residential units. The Company's managementestimates that the projected sales of the project will total approximately €22million. The agreement is subject to receipt of a planning permit. The Company intends to develop a residential project with a total area ofapproximately 9,000sqm on the acquired land. The project is in a verydistinguished quarter of Prague - close to the Valtava River on one side and theprestigious palace gardens on the other, and is located in close proximity toPrague's city center. The total purchase price of the land will be approximately €4.6 million, ofwhich approximately €700,000 will be paid into an escrow account. The balance ofthe consideration will be paid upon receipt of the planning permit and untilsuch time will be guaranteed partly by a bank guarantee and partly by acorporate guaranty provided by the Company. Engel East Europe is in continuing negotiations for the purchase of additionalparcels of land throughout the CEE Region, both in countries where the Companyis already active, as well as in new countries, for the development ofadditional projects. Jacob Engel, founder and Executive Chairman, said: "We are especially pleased to obtain the rights to this project, due to itsattractive and high-quality location within the beautiful city of Prague. Oursuccess in obtaining the rights to this project is as a result of our widenetwork of sources and our involvement in Prague's residential property market.This complements our strategy of further expanding our activities in Prague,relying on the steady growth of the Czech market, and taking full advantage ofthe considerable growth opportunities for residential property development inother markets in the CEE region." Enquiries Engel East Europe N.V.Nir Netzer, CFO +972 (0)9 970 7024 Citigate Dewe RogersonSally Marshak / Hannah Seward +44 (0)20 7638 9571 Notes to editors Engel East Europe listed on AIM on 15 December 2005 and is an internationalresidential property developer incorporated in The Netherlands. The Companyoperates in Central and Eastern Europe and has various developments in Hungary,the Czech Republic, Poland, Bulgaria, Serbia and Romania, as well as operationsin Germany and Canada. Engel is currently involved in the development ofapproximately 12,000 residential units and is in negotiations to purchase landfor the development of additional projects throughout the CEE Region. END This information is provided by RNS The company news service from the London Stock Exchange