Acquisition

Dawnay, Day Carpathian PLC
28 September 2007



                           Dawnay, Day Carpathian PLC

                            ('DDC' or the 'Company')

  Announces the Acquisition of multi-purpose development sites in Arad, Romania


Dawnay, Day Carpathian PLC, the retail property investment company established
to invest in Central and Eastern Europe, is pleased to announce that it has
acquired two land plots, together forming a multi-purpose development site for
the combined value of €11.8 million (£8.3 million) in Arad, Romania 
(the 'Arad Development' or 'Arad Transaction'). This acquisition follows on from 
the acquisition of the development site in Cluj-Napoca, Romania announced in 
August 2007 and is the second of the four pipeline deals identified by the 
Company's property investment manager, Dawnay, Day PanTerra Limited 
(the 'Property Advisor') at the time of the second fund raising completed in May 
2007.


Arad Development

Arad is one of the largest cities in Romania, situated in the west of the
country on the River Mures, which is an important industrial centre and
transportation hub. The Arad Development site is located in close proximity to
the city center and covers a total area of approximately 24,500 sqm. The planned
development will have a gross lettable area of approximately 29,000 sqm
comprising a state of the art retail and entertainment complex.

The site is highly visible to passing traffic being located along 160 metres of
a main highway. It benefits from excellent transport links, given the close
proximity to local rail and bus stations as well as to the tram line, making it
easily accessible from all parts of the city. The potential catchment area is
substantial being situated between a densely populated residential area and the
city centre. A preliminary planning consent (or PUD) is in place, and
construction is expected to commence before the end of the year. The estimated
total investment is €72 million and completion is being targeted for the end of
2008. Based on a capitalisation yield of 7%, this puts the estimated project
value upon completion at €87 million.

This development is to be undertaken in conjunction with a local partner, who
has been responsible for sourcing the transaction and securing planning consent
and who has been involved in a number of shopping centre projects in the region.
The joint venture has been arranged by the Property Advisor to operate in the
local market as Atrium Developments. It is intended for DDC to become a party to
this joint venture under which the local partner will source and introduce all
retail transactions exclusively to DDC in the region. The local partner will be
entitled to a 25% interest in all joint venture projects once a rate of return
has been achieved. It is also intended that the Atrium joint venture will
include the Cluj-Napoca transaction previously announced on 15 August 2007,
following its introduction to the Property Advisor through the same local
partner. Further details on the joint venture agreement will be announced once
the legal arrangements are concluded.

The acquisition is a share purchase transaction from a UK holding company in
which members of the Dawnay, Day Group have a controlling interest and
represents the Company's third investment in Romania and the fifteenth
transaction overall. The Arad Development has been purchased with financing
arranged by the Property Advisor and this debt is intended to be refinanced with
a construction loan when the project commences next year. The leasing of the
space, arranged through DTZ Echinox, is well under way.

Following the acquisition, members of the Dawnay, Day Group have agreed to
subscribe for an estimated €3 million of new ordinary shares in DDC,
representing profits from the Arad Transaction.

Commenting on the acquisition, Rupert Cottrell, Chairman of Dawnay, Day
Carpathian PLC said 'DDC believes the two development opportunities we have
announced in Romania together with our pipeline of further projects in this
market represent a solid platform to generate excellent returns for
shareholders. These investments will also result in us establishing a strong
Romanian presence enabling us to benefit from economies of scale with relation
to the construction and development process.'


Enquiries:

Dawnay, Day PanTerra   Peter Klimt               020 7834 8060

                       Paul Rogers

                       Balazs Csepregi
Cardew Group           Tim Robertson             020 7930 0777

                       Catherine Maitland

Numis Securities       Bruce Garrow              020 7260 1000

                       Anthony Richardson




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