Ukraine update

RNS Number : 9236K
Nanette Real Estate Group N.V.
31 December 2008

Nanette Real Estate Group NV
"Nanette" or "the Group"

Increased investment in residential development site in Kiev, Ukraine

Following the announcement made on March 20, 2008 Nanette is very pleased to announce that through a Cyprus 100% subsidiary it purchased
an additional 15% of the share capital of Olimpia Real Estate LLC, which is the holding company for the residential development in Kiev,
Ukraine.

Olimpia Real Estate LLC is the owner of 118,000 Sqm plot of land in the centre of Kiev, Ukraine, according to the expected rights on the
land it will be possible to build approximately 370 thousand Sqm of residential, commercial and office space on the plot.

Nanette's holding is now 30%. The sum paid was USD 6 M, and Nanette's total investment amounts to USD 12 million (app. Euro 8.5
millions) the investment was made through shareholders loans; the shares were purchased from Olimpia Euro Construction BV (Olimpia Euro) at
their nominal value. 45% of Olimpia Euro is held by Olimpia Real Estate Ltd (Olimpia), a 32.3% share holder of Nanette. Mr. O. Kazenelson,
Nanette's CEO is one of Olimpia's founding shareholders and serves as its president of the board, Mr. Ron Hadassi a non executive director
in Nanette is the representative of the Bronfman-Fisher group which is part of the controlling group of Olimpia.

Olimpia Real Estate LLC's shareholder structure is now:
* Olimpia Euro 64%
* Nanette 30%
* Local partners 6%
with the exception of Oskar Kazanelson and Ron Hadassi (due to their interest in Olimpia Euro as set out above) the independent
directors of Nanette consider, having consulted with KBC Peel Hunt Ltd, that the terms of this transaction are fair and reasonable insofar
as its shareholders are concerned.

The deal was financed from Nanette's own cash resources. Nanette and its partners to the projects are looking for bank finance and
additional potential partners to the project.

Shaul Lotan, Chairman of Nanette, comment:

"Nanette is taking the valuable opportunity to increase its investment in this project. This project, which we will manage with a
familiar partner and a highly experienced and reputable developer, will allow Nanette a safe entry to this new market. We at Nanette are of
the strong believe that Ukraine and Kiev in particular show tremendous potential"

31 December 2008

ENQUIRIES:

Nanette Real Estate Group
Shaul Lotan + 972 3 7 100 200
Eyal Keltsh +48 606141201

College Hill
Paddy Blewer 020 7457 2020
Gareth David

KBC Peel Hunt
Capel Irwin 020 7418 8900
Nicholas Marren

This information is provided by RNS
The company news service from the London Stock Exchange

END

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