Financing Arrangements

Kimberly Enterprises N.V.

('Kimberly' or 'the Company')

Financing Arrangements

Kimberly, the AIM-quoted Eastern European residential property developer (KBE.L), announces that it is negotiations regarding the restructuring of its financing arrangements.

Engel Resources & Development Limited ("ERD"), the parent company of the Company's immediate parent company, Engel General Developers Limited ("EGD"), has provided several loan facilities to Kimberly for a total amount of approximately €20 million. These loans are secured on the Company's interest in the Marina Dorcol project in Serbia and the Wilanov 2 project in Poland.

Kimberly is in negotiations with ERD to repay €15 million of the sums owed to ERD, which will be financed by new loans from third parties. The proposed financing will also involve selling part of the shares held by ERD in Kimberly to the third parties.

The refinancing proposal is subject to Board and ERD approval and a further announcement will be made in due course.

ENDS

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