NewRiver Regulatory News (NRR)

NewRiver Retail Limited ("NewRiver" or "the Company")

AGM Statement and Update

At today's Annual General Meeting of NewRiver Retail Limited (AIM and CISX: NRR), the UK REIT specialising in value-creating retail property investment and active asset management, Chairman, Paul Roy, will make the following statement:

As stated in the annual results of 1 June 2011, I am pleased to report that NewRiver continues to build on the strong start since its IPO 19 months ago and has established both a profitable business with a strong platform for growth and become a recognised leader in its specialist retail sector.

The annual profit before tax of £4.9m was a significant achievement given that it was our first full year of trading. The revaluation surplus was particularly pleasing as it proved the Company's ability both to acquire assets off-market at attractive prices, and to self generate value through active asset management initiatives.

The year to March 31 2011 was a particularly active period for the Company, during which a number of key milestones were met. We completed four major acquisitions totalling £89 million, converted to UK-REIT status, realigned our corporate structure, created new banking relationships and raised £35 million of additional capital through issues of new equity and Convertible Loan Stock.

Following the financial year-end, the Company has been very busy with a proposed major acquisition and equity fund raise which, with shareholder's approval, takes the Company to a new level. The EGM is scheduled to take place at 11am on 2 August 2011.

In December 2010, the Company completed its largest acquisition since incorporation, acquiring off-market a major portfolio of five UK shopping centres from the CReAM fund and Barclays Bank for £53.0m at a net initial yield of 8.4%. The acquisitions to date are a prime example of NewRiver's resilient business strategy and ability to source and acquire attractive, high-yield investments.

Towards the end of the financial year, our first disposals were made where we felt the upside created through asset management initiatives completed was best redeployed into new projects. Some £11 million of assets were sold, generating significant returns.

The conversion to UK REIT status was a particularly important move for the business, reflecting the Company's commitment to paying regular dividends as a minimum of 90% of the Company's recurring rental profits. Following the conversion, we took the opportunity to streamline the corporate and asset management structure by constituting a single Board with key members of the London investment and management team, being appointed as Executive Directors alongside a new Non Executive Director.

As a specialist REIT, our strategy is focused on identifying trends in the retail sector and acquiring assets with a focus on food and value retailing, let at affordable rents in economically firm, defensible locations. Our top ten tenants include major food retailers such as Tesco and Sainsbury's and value retailers such as Wilkinson, Superdrug and Peacocks. It is estimated that the food retailers alone are seeking 19 million sq ft of new space in the next five years and NewRiver is well placed to work with them to deliver this supply.

The Company believes maximising income is the key to outperformance, which is why we seek to acquire properties that generate a high initial yield as well as providing identifiable value creating asset management opportunities. During the year under review, our acquisitions were made at an average initial yield of 8.5 %, which makes a significant contribution towards our minimum total returns. Importantly we believe our assets are well-located and benefit from advantageous local economic and demographic factors that make them attractive for retailers. Our focus on non discretionary spend through food and value retailing has been a significant defence for the portfolio in the current challenging consumer environment.

Our asset management programme has been very active, involving some 500,000 sq ft of risk-controlled development and refurbishment opportunities across eight shopping centres. In addition the Company has completed 53 leasing events of which 97% have been completed at, or above, our business plans.

The momentum has continued in the current financial year and as announced on 27 June 2011, NewRiver took a major step forward with a proposed acquisition and further significant equity fund raise. We have entered into agreements to acquire a portfolio of four freehold shopping centre assets from Zurich Assurance Limited for approximately £68 million and propose to raise over £40 million by way of a placing of new shares. The proposal is subject to shareholder approval at a forthcoming Extraordinary General Meeting. If approved, post completion, NewRiver will to date have acquired approximately £220 million of retail assets over a short period demonstrating its continuing ability to source attractive deals, many off-market, that complement the Company's disciplined and well researched investment strategy.

In essence, in the 19 months since our IPO in September 2009, the Company has achieved its key objective of establishing a profitable platform with a strong management team that is capable of delivering further sustainable growth. We have recruited and developed the core team and acquired a high quality portfolio with strong prospects. Our own research suggests NewRiver has been one of the most active quoted retail property investors in 2010 and is well placed to deliver future strong earnings and capital growth. The new financial year has started well and the Board looks forward to the future with confidence.

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For further details contact:

NewRiver Retail Limited Tel: 020 3328 5800

Paul Roy, Chairman

Mark Davies, Finance Director

Pelham Bell Pottinger Tel: 020 7861 3232

David Rydell

Rosanne Perry