Appointment of Adviser and Strategic Review

PRESS ANNOUNCEMENT

EMBARGOED UNTIL 7:00 AM 

22 October 2008

Carpathian PLC ("Carpathian", the "Group" or the "Company")

Appointment of NOMAD & Broker and Financial Adviser

Announcement of Strategic Review

The Board of Carpathian (AIM: CPT), the retail and commercial property company established to invest in Central and Eastern Europe, today announces that it has appointed Collins Stewart Europe Limited as its nominated adviser and sole broker with immediate effect. In addition, the Board announces the appointment of Hawkpoint Partners Limited as financial adviser to the Company to assist the Board of Carpathian in undertaking a strategic review (the "Review").

The Review will consider alternatives available to the Company to maximise value for shareholders, including a possible sale of the whole Company, at a time when Carpathian's shares trade at a significant discount to the published Net Asset Value of the Group. 

The Review is at a very preliminary stage and the Board intends to update shareholders as soon as it is appropriate to do so.

Enquiries:

Carpathian PLC

Via Redleaf Communications

Rupert Cottrell (Non-executive Chairman)

Philip Scales (Non-executive Director)

Carpathian Asset Management Limited

020 3178 2892

Paul Rogers

Balazs Csepregi

Simon Killick

Collins Stewart Europe Limited

 020 7523 8000

Bruce Garrow

Hawkpoint Partners Limited

020 7665 4500

Edward Arkus

Redleaf Communications

020 7822 0200

Emma Kane

Adam Leviton

carpathian@redleafpr.com

-

Carpathian was created in 2005 for the purpose of investing in Central and Eastern European commercial real estate.

-

Carpathian's primary focus is on shopping centres, supermarkets and retail warehousing in several target countries in Central and Eastern Europe including Croatia, the Czech Republic, Hungary, Bulgaria, Poland, Romania, Slovakia and the Baltics.

-

Carpathian's principal objective is to provide shareholders with a regular and significant dividend income, derived from rental income. In addition, there is potential for capital appreciation from the sale, redevelopment and refinancing of its properties.  

-

Carpathian listed on AIM in July 2005 and has acquired a substantial property portfolio of approximately £650 million (approximately €810 million).

-

Carpathian Asset Management Limited is the Property Investment Advisor to Carpathian. It is responsible for identifying acquisition targets, managing transactions and portfolios within Central and Eastern Europe.

Hawkpoint Partners Limited ("Hawkpoint"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Carpathian and no one else in connection with the Review and will not be responsible to anyone other than Carpathian for providing the protections afforded to customers of Hawkpoint, or for providing advice to any other person in relation to the Review.

Collins Stewart Europe Limited ("Collins Stewart"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Carpathian and no one else in connection with the Review and will not be responsible to anyone other than Carpathian for providing the protections afforded to customers of Collins Stewart, or for providing advice to any other person in relation to the Review.

In accordance with Rule 2.10 of the Takeover Code, as at the close of business on 21 October 2008 Carpathian confirms that it has 232,148,175 ordinary shares of 1p each in issue. The ISIN reference for these securities is GB00B0B66533.

Dealing Disclosure Requirements 

Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Carpathian, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Carpathian, they will be deemed to be a single person for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of the offeror or of Carpathian by the offeror or Carpathian, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. 

"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. 

Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.