Joint Venture Companies

Engel East Europe N.V.

("Engel" or the "Company")

Joint Venture Companies

Engel East Europe N.V. ("Engel" or the "Company"), the AIM listed East European property developer, has been notified that its controlling shareholder, GBES Limited, has reached agreement with funds managed by Heitman LLC ("Heitman") to acquire all of Heitman's interests in Arces International B.V. ("Arces") and Enman B.V. ("Enman"). Arces and Enman are both joint venture companies currently jointly owned by Heitman and Engel ("Joint Venture Companies").

The consideration for the two acquisitions will be paid in instalments and it will include the assignment of shareholder loans provided by Heitman to the joint venture companies.

Completion of both acquisitions is subject to a number of conditions precedent, and is due to take place on or before 30 June 2012. Some of the conditions precedent will require the consent of the Company.

A further announcement will be made in due course.

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