Re Agreement

Engel East Europe N.V.

Agreement

Engel East Europe N.V. ('Engel East Europe' or 'the Company'), the AIM-quoted Central and Eastern European ('CEE') residential property developer (EEE:LN), has renegotiated its joint venture agreement with a fund managed by Heitman L.L.C. in respect of ENMAN B.V. ("ENMAN"), the entity that holds some of the Group's interests in its projects in Eastern Europe. The main terms of the amendment to the agreement include, inter alia, a reduction of Engel's share of profit distributions from ENMAN from 40% to 25% and an increase in Engel's share of profit distributions from Troya, a subsidiary of ENMAN, which holds the 100% of the project in Czech Republic, from 40% to 50%.

Following completion of the agreement above, EEE will recognize a loss of €2 million on the book value of its investment in ENMAN. 

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