Princess Priv E Regulatory News (PEY)

News Release

Guernsey, 14 March 2011

Princess publishes annual report 2010 with 18.4% NAV increase

Princess Private Equity Holding Limited (Princess or the Company) has published its 2010 annual report today. Notable events include:

n The net asset value (NAV) increased by 18.4% to EUR 8.69 per share in 2010; mainly due to the strong operating performance of the companies in the Princess portfolio, having an impact of +16.6%

n Deal activity picked up considerably, with distributions from realizations of portfolio companies reaching EUR 95.2 million for the full year 2010, nearly double the amount seen in 2009

n The Board of Princess and the Investment Manager launched various initiatives to develop shareholder value and to close the discount of the share price to NAV

n In October 2010, Princess announced a strategic repositioning which included the commitment to resume dividend payments, the implementation of a share buyback program and a shift in the investment focus towards direct investments

n These measures were supported by a secondary sale of select fund commitments that was completed after year-end and at much narrower discounts to NAV than the discount at which Princess shares were trading

n Supported by the said repositioning initiatives during the course of the year, the Princess share price increased strongly in 2010 and rose by 87.3% on the Frankfurt Stock Exchange, resulting in the discount to the NAV narrowing to 26.9%

Brian Human, Chairman of Princess' Board of Directors, comments: "The year 2010 was an eventful one for Princess, as various initiatives were launched aiming to develop shareholder value and to close the discount to NAV. Further to the repositioning measures already implemented, we are committed to resuming dividend payments in 2011 and to initiating direct investments in the short term. Besides these active steps taken by the Manager, I am encouraged by the sustained operating performance of the companies in the Princess portfolio, which was the largest single contributor to our positive NAV development in 2010. Coupled with the strong exit activity in Princess' mature portfolio, this underlying operating strength will, I am confident, permit the Company to continue to build on its strong NAV development and create further value for its shareholders over the coming quarters. Measures taken by the Company to improve its underlying liquidity should provide a cushion in the event of an unexpected adverse economic development."

A detailed analysis and commentary on the developments at Princess during the year 2010 are presented in the annual report published today, which can be accessed via http://www.princess-privateequity.net/en/investor_relations/reports.php?ml

The Annual Report and Accounts will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

Tel.: +44 20 7676 1000

Ends.

About Princess

Princess is an investment holding company founded in 1999 and domiciled in Guernsey. It invests, inter alia, in private equity and private debt investments. Princess is advised in its investment activities by Partners Group AG, a global private markets investment management firm with over EUR 20 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. Princess aims to provide shareholders with long-term capital growth and an attractive dividend yield. Princess is traded on the Frankfurt Stock Exchange (ticker symbol: PEY1) and on the London Stock Exchange (ticker symbol: PEY). Further information: www.princess-privateequity.net

Contacts

Princess Private Equity Holding Limited:

princess@princess-privateequity.net

www.princess-privateequity.net

Registered Number: 35241

Media enquiries:

Partners Group AG

Dr. Anna Hollmann

Communications

Tel.: +41 41 768 83 72

anna.hollmann@partnersgroup.com

www.partnersgroup.com

This document does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for any securities and neither is it intended to be an investment advertisement or sales instrument of Princess Private Equity Holding Limited. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes must inform themselves about, and observe any such restrictions on the distribution of this document. In particular, this document and the information contained therein is not for distribution or publication, neither directly nor indirectly, in or into the United States of America, Canada, Australia or Japan.

This document may have been prepared using financial information contained in the books and records of the product described herein as of the reporting date. This information is believed to be accurate but has not been audited by any third party. This document may describe past performance, which may not be indicative of future results. No liability is accepted for any actions taken on the basis of the information provided in this document. Neither the contents of Princess' website nor the contents of any website accessible from hyperlinks on Princess' website (or any other website) is incorporated into, or forms part of, this announcement.