Interim Results

Dawnay, Day Carpathian PLC
28 September 2007

                                                                                                                        
            
                          Dawnay, Day Carpathian PLC
                           ('DDC' or the 'Company')

       Unaudited Interim results for the six months ended 30th June 2007

                                   Highlights

   • Successful secondary Placing raising a further £100 million (before
     expenses) completed in May 2007

   • Diversified portfolio spread across 6 countries in Central and Eastern
     Europe

   • During the six-month period ended 30th June 2007, the Company committed
     £29 million of equity to a forward purchase of 55% of a development in 
     Riga. Since 30th June 2007, announced a further two development 
     transactions for a combined equity commitment of £30 million (including the 
     Arad development announced today)

   • On track to meet the investment targets timetable set in May 2007
     supported by a robust pipeline of some ten transactions which includes a
     balanced mix of development and income producing opportunities

   • On track to deliver dividend targets of 10p for 2007 and 2008

   • Net rental income of £11.11 million (30th June 2006: £4.42 million)

   • Net profit grew to £7.16million (30th June 2006: £5.18 million) excludes
     any new revaluation surplus as the properties are only revalued on an annual
     basis

   • Basic earnings per share is 3.7 pence, while diluted earnings per share
     is 3.6 pence

   • NAV per share of 112.41 pence (31 December 2006: 114.15 pence).  Adjusted 
     NAV per share of 119.67 pence (31 December 2006: 126.68 pence). The
     change in NAV values largely reflects the impact of the £100m secondary 
     Placing and dividend declared of £10.7 million during the period.


Rupert Cottrell, Chairman of Dawnay, Day Carpathian, said: 'We are pleased to
report that the Company remains in a good position with a strong and
geographically diverse portfolio. While global market conditions have unsettled
specific markets, revenues from our operations have been unaffected and in time
should generate acquisition opportunities for the Company as some of the less
established buyers fall away thereby reducing competition. The additional funds
raised in May 2007 will enable the continued expansion of the portfolio and the
Company is pleased to confirm it remains on track to deliver on its dividend
targets of 10p for 2007 and 2008.'



Enquiries:

Dawnay, Day Carpathian PLC          Paul Rogers               020 7834 8060
                                    Balazs Csepregi

Cardew Group                        Tim Robertson             020 7930 0777
                                    Catherine Maitland


Chairman's statement

I am pleased to report that following the successful secondary Placing completed
in May 2007, the Company is on track to build a substantial retail portfolio in
Central and Eastern Europe, within the timetable set. While market conditions
have become less predictable, the property investment manager, Dawnay, Day
PanTerra ('PanTerra') believes that the Company is well positioned given the
current transaction pipeline which in itself is sufficient to meet the Company's
investment targets together with the expectation of being able to take advantage
of more opportunistic purchases arising from reduced competition as less
established buyers find it harder to operate.

During the six-month period, the Company delivered a solid financial performance
generated currently from the income producing property portfolio which benefits
significantly from being diversified geographically as well as by target
customer groups.

The Company's investment strategy remains focused on enhancing the
diversification of the present portfolio through acquiring or developing new
properties in new locations as well as continuing to pursue the significant
asset management opportunities across the existing portfolio. Ultimately, the
Company is committed to providing shareholders with a resilient property
portfolio and delivering reliable dividend income and capital growth.


Financial results

The Company generated net rental income for the period of £11.11 million (30th
June 2006: £4.42 million) which led to a profit before tax of £7.16 million
(30th June 2006: £5.18 million).

The basic earnings per share of the Company were 3.7 pence, while the diluted
earnings per share were 3.6 pence. NAV per share was 112.41 pence (31 December
2006: 114.15 pence) and the adjusted NAV per share was 119.67 pence (31 December
2006: 126.68 pence). The change in NAV values largely reflects the impact of the
£100 million secondary Placing and dividend declared of £10.7 million during the
period.

As at 30th June 2007, the Company's borrowings totalled £256.2 million,
representing a loan to value ratio of 69%. The weighted average lengths of the
loans are approximately 2.7 years. The weighted average interest rate of the
borrowings is 5.21% for the period. The Company has hedged its interest rate
exposure by swapping the variable Euribor rate to an average fixed rate of
3.57%.


Dividends

The Board has declared its first dividend in respect of the financial year ended
31 December 2007 of 3.33 pence per share on 23 April 2007. This will be paid on
28 September 2007 to ordinary shareholders on the register at the close of
business on 4 May 2007.

The Company's intention is to pay an additional interim dividend of 3.33 pence
per share, together with a final dividend for the financial year ended 31
December 2007, which is intended to result in an aggregate dividend payment of
10 pence per share for the financial year ended 31 December 2007.


Property portfolio

During the period, the Company committed £29 million of equity to the forward
purchase of 55% of the Riga development and since then we have announced a
further two development transactions for a combined equity commitment of £30
million. In addition, all conditions were met in the early part of 2007, with
regard to the final completion of the £57.75 million acquisition of the
Interfruct portfolio in Hungary first announced in November 2006.

The underlying market conditions reflect increasing consumer spending and
affordable rents. This is feeding through to more prompt rental payments.

The development of the Galleria Patollo shopping centre in Riga, Latvia, is
continuing on track, this is a substantial project which on completion in 2009
is expected to be worth in excess of £170 million. The Company's largest asset,
the Promenada Shopping Centre in Poland is currently being extended by 7,600 sqm
to incorporate further retail space and this is also progressing to plan.

Today the Company announced the acquisition of a retail development site in
Arad, Romania for £8.3 million. 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 PanTerra at the time of the
second fund raising completed in May 2007.


Share buy back

The Company continues to actively monitor share buy back opportunities, but is
equally conscious of conserving existing cash resources for its investment
commitments.


Outlook

The macroeconomic outlook within our target markets is still attractive and the
Board believe it provides the Company with excellent growth prospects in the
consumer sector in the medium and short term.

The present market turbulence experienced in the credit markets of primarily USA
and Western Europe has so far only had a slight impact on our target markets. In
addition, the slight adjustments in pricing on new debt instruments for
prospective deals are compensated by the favourable changes in the Euro swap
rates.

The Board feels that the present market conditions paired with the Company's
resources and its experience in these markets provides us with excellent
opportunities to deliver outstanding value to our shareholders.



UNAUDITED CONSOLIDATED INCOME STATEMENT          30-Jun-07 30-Jun-06   31-Dec-06
For the six months ended 30 June 2007
GROUP                                     Note       £'000     £'000       £'000
Gross rental income                                 13,146     4,635      15,799
Service charge income                                4,825     1,449       5,946
Service charge expense                             (5,606)   (1,355)     (6,712)
Property operating expenses                        (1,621)     (491)     (2,679)
Other property income                                  367       184         335
                                               _________________________________

Net rental and related income                       11,111     4,422      12,689

Changes in fair value of investment     
property                                    2            -         -      36,792

Changes in fair value of financial 
assets and liabilities                               (841)     (174)     (1,147)

Net Foreign Exchange (loss) / gain                   1,186     (341)       1,388

Administrative expenses                            (1,561)     (911)     (2,140)
                                               _________________________________
Net operating profit before net financing      
income                                               9,895     2,996      47,582
                                               _________________________________

Financial income                                     4,888     4,115       6,839
Financial expense                                  (7,624)   (1,935)     (7,660)
                                               _________________________________

Net financing (expense)/income              3      (2,736)     2,180       (821)
                                               _________________________________

Net profit before tax                                7,159     5,176      46,761

Tax                                                (1,182)     (618)    (10,739)
                                               _________________________________

PROFIT FOR THE PERIOD                                5,977     4,558      36,022

                                               =================================

Attributable to:
Equity holders of the Company                        5,977     4,460      30,706
Minority Interests                                       -        99       5,316

Basic and diluted earnings per share for 
profit attributable to the equity holders 
of the Company during the period

Basic earnings per share                    4          3.7       3.1        21.1
Diluted earnings per share                  4          3.6       3.0        21.0




UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2007

                             Share   Share Minority Translation Retained     
                           Capital Premium Interest     Reserve Earnings     Total
GROUP                 Note   £'000   £'000    £'000       £'000    £'000     £'000
                           _______________________________________________________

Balance as at 1 January  
2006                         1,454 125,556      230        (95)   14,675   141,820
Profit for the period            -       -        -           -   36,022    36,022
Minority interest                -       -      460           -    (460)         -
Dividend paid                    -       -        -           -  (2,909)   (2,909)
Carried interest                
allocation to
minority
shareholders                     -       -    4,856           -  (4,856)         -
Translation into               
presentation
currency                         -       -        -     (3,372)        -   (3,372)
                           _______________________________________________________

Balance as at         
31 December 2006             1,454 125,556    5,546     (3,467)   42,472   171,561

                           =======================================================


Balance as at 1 January   
2007                         1,454 125,556    5,546     (3,467)   42,472   171,561
Profit for the period            -       -        -           -    5,977     5,977
Purchase of minority        
shareholders'
interest                         -       -    (690)           -        -     (690)
Dividend Paid          8         -       -        -           -  (5,841)   (5,841)
Dividend Declared      8         -       -        -           -  (4,868)   (4,868)
Translation into            
presentation
currency                         -       -        -       (758)        -     (758)
Issue of shares        6       839  99,761        -           -        -   100,600
Costs of issue of     
shares                 6         - (3,304)        -           -        -   (3,304)
                           _______________________________________________________

Balance as at             
30 June 2007                 2,293 222,013    4,856     (4,225)   37,740   262,677

                           =======================================================



                                                 30-Jun-07  30-Jun-06  31-Dec-06


UNAUDITED CONSOLIDATED BALANCE SHEET
For the six months ended 30 June 2007

GROUP                                     Note       £'000      £'000      £'000
ASSETS
Non current assets
Investment property                                371,148    227,459    368,692
Goodwill                                            18,139      9,727     16,578
Costs relating to future acquisitions                  266          -        436
Deferred income tax assets                             937        734        964
Other Investments                            5       4,970          -          -
Loans receivable                             5       1,685          -          -
                                                ________________________________

                                                   397,145    237,920    386,670
                                                ________________________________

Current assets
Trade and other receivables                          6,809      5,462     10,368
Cash and cash equivalents                          164,623     94,350     75,131
Financial assets                                     4,814      2,035      2,666
                                                ________________________________

                                                   176,246    101,847     88,165
                                                ________________________________

TOTAL ASSETS                                       573,391    339,767    474,835

                                                ================================


EQUITY
Issued Capital                               6       2,293      1,454      1,454
Share Premium                                6     222,013    125,556    125,556
Retained Earnings                                   37,740     19,135     42,472
Translation reserve                               ( 4,225)        672   ( 3,467)
                                                ________________________________
Total equity attributable to equity 
holders of the parent                              257,821    146,817    166,015
                                                ________________________________

Minority Interest                                    4,856        329      5,546
                                                ________________________________

TOTAL EQUITY                                       262,677    147,146    171,561

                                                ================================
                                           
LIABILITIES
Non-current liabilities
Bank loans                                         213,529    159,726    189,535
Deferred income tax liabilities                     35,801     11,586     35,336
                                                ________________________________

                                                   249,330    171,312    224,871
                                                ________________________________

Current liabilities
Trade and other payables                            11,290     17,097     11,838
Bank loans                                          42,651      4,038     64,702
Dividend Payable                                     4,868          -          -
Provisions                                             729          -        729
Financial liabilities                                1,846        174      1,134
                                                ________________________________

                                                    61,384     21,309     78,403
                                                ________________________________

TOTAL LIABILITIES                                  310,714    192,621    303,274
                                                ________________________________

TOTAL EQUITY AND LIABILITIES                       573,391    339,767    474,835
                                                ________________________________



UNAUDITED CONSOLIDATED CASH FLOW STATEMENT       30-Jun-07  30-Jun-06 31-Dec-06
For the six months ended 30 June 2007

GROUP                                     Note       £'000      £'000     £'000
Cash flows from operating activities
Cash generated from operations             7        12,678      1,282     2,940
Income taxes paid                                  (1,168)          -     (797)
                                                ________________________________

Net cash generated from operating                 
activities                                          11,510      1,282     2,143
                                                ________________________________

Cash flows from investing activities
Capital expenditure on investment         
properties                                         (2,259)    (2,287)  (34,486)
Capital expenditure on incomplete                      
acquisitions                                             -          -     (436)
Investment in unconsolidated entities              (1,685)          -         -
Loans advanced to unconsolidated              
entities                                           (4,970)          -         -
Interest received                                    2,273      2,598     4,593
Acquisition of subsidiaries                        (1,094)    (6,824)  (70,937)
Acquisition of minority interest in               
subsidiaries                                         (987)          -         -
Loans advanced to Subsidiaries before               
acquisition                                              -   (19,460)  (22,476)
                                                ________________________________

Net cash used in investing activities              (8,722)   (25,973) (123,742)
                                                ________________________________

Cash flows from financing activities
Dividends Paid                                     (5,841)    (4,363)   (7,272)
New bank loans raised                               28,668          -    86,045
Proceeds on issue of shares, net of issuance       
costs                                               97,296          -         -
Interest paid                                      (6,279)    (1,505)   (7,075)
Repayments of borrowings                          (27,354)    (1,766)         -
                                                ________________________________

Net generated / (cash used in) from financing    
activities                                          86,490    (7,634)    71,698
                                                ________________________________

Net increase / (decrease) in cash and cash        
equivalents                                         89,278   (32,325)  (49,900)
Cash and cash equivalents at the beginning of     
the period                                          75,131    126,145   126,145
Exchange gains / (losses) on cash and cash          
equivalents                                            214        530  ( 1,114)
                                                ________________________________
Cash and cash equivalents at the end of the      
period                                             164,623     94,350    75,131
                                                ________________________________




Notes to the Unaudited Consolidated financial statements


1 General information

Dawnay, Day Carpathian PLC (the 'Company') is a company incorporated and
domiciled in the Isle of Man on the 2 June 2005 for the purpose of investing in
the retail property market in Central and Eastern Europe.

The interim report of Dawnay, Day Carpathian PLC for the six months ended 30
June 2007, comprises the Company and its subsidiaries (together referred to as
the 'Group').

The Company's registered address is IOMA House, Hope Street, Douglas Isle of
Man.

The Company was admitted to the AIM of the London Stock Exchange and commenced
trading its shares on 26 July 2005. The Company raised approximately £140m at
listing and a further £100m in May 2007 (before admission costs).

The functional currency of the consolidated financial statements is the Euro as
it is the currency of the primary economic environment in which the Group
operates. The consolidated financial statements are presented in Pounds Sterling
(presentation currency) for the convenience of readers. The translation between
the functional and presentation currency is in accordance with the Group's
accounting policies.


2 Significant accounting policies

The interim report for the six months ended 30 June 2007 is unaudited and has
been prepared based on the accounting policies set out in the statutory accounts
for the year ended 31 December 2006.

The Group's policy is to fair value investment properties annually at 31
December, as a result no fair value adjustments have been recognised in the
income statement for the six months ended 30 June 2007.


3 Net financing income

Net financing income
                                         30-Jun-07 30-Jun-06 31-Dec-06

                                             £'000     £'000     £'000
GROUP
Interest income from financial             
institutions                                 2,254     2,693     4,593
Fair value adjustment of interest           
rate swaps                                   2,276     1,422     2,246
Interest income from related party             358         -         -
                                          ____________________________

Financial income                             4,888     4,115     6,839
                                          ____________________________

Gross interest expenses on bank    
borrowings                                 (7,130)   (1,761)   (7,597)
Unwinding of unrealised direct issue       
costs of borrowings                          (494)     (174)      (63)
                                          ____________________________

Financial expense                          (7,624)   (1,935)   (7,660)
                                          ____________________________

Net financing costs                        (2,736)     2,180     (821)
                                          ____________________________



4 Earning per share


Basic earning per share


The calculation of basic earnings per share at 30 June 2007 was based on the
profit attributable to ordinary shareholders of £5,977,000 and a weighted
average number of ordinary shares outstanding during the six month period ended
30 June 2007 of 162,425,595, calculated as follows:

                                          30-Jun-07   30-Jun-06   31-Dec-06
GROUP
Profit attributable to ordinary               £'000       £'000       £'000
shareholders
Profit for the period                         5,977       4,558      36,022
Minority interest                                 -        (99)     (5,316)
                                          _________________________________

Profit attributable to ordinary            
shareholders                                  5,977       4,459      30,706
                                          =================================

Weighted average number of ordinary
shares

Shares in Issue at 31 December      
2005 and 2006                           145,430,015 145,430,015 145,430,015
Effect of shares issued on 23         
February 2007                               420,994           -           -
Effect of shares issued on 18           
May 2007                                 16,574,586           -           -
                                        ___________________________________ 
Weighted average number of            
ordinary shares                         162,425,595 145,430,015 145,430,015
                                        ===================================

Basic earnings per share                       3.7p        3.1p       21.1p




Diluted earning per share

The calculation of diluted earnings per share at 30 June 2007 was based on the
profit attributed to ordinary shareholders of £5,977,000 and a weighted average
number of ordinary shares outstanding during the period ended 30 June 2007 of
164,995,950 calculated as follows:

Profit attributable to ordinary                £'000       £'000       £'000
shareholders (diluted)

Profit for the period                          5,977       4,558      36,022
Minority interest                                  -        (99)     (5,316)
                                            ________________________________
Profit attributable to ordinary           
shareholders                                   5,977       4,459      30,706
                                            ================================

Weighted average number of ordinary
shares

Weighted average number of ordinary     
shares                                   162,425,595 145,430,015 145,430,015
Effect of dilutive potential ordinary   
shares: Share options                      2,570,355   1,989,605   1,085,853
                                         ___________________________________
Weighted average number of ordinary    
shares (diluted)                         164,995,950 147,419,620 146,515,868

                                         ===================================

Diluted earnings per share                      3.6p        3.0p       21.0p



5 Other Investments

On 2 April 2007 the Group agreed to the purchase of a 55% interest in SIA
Patollo, on the completion of the development of Galleria Patollo shopping
centre in Riga, Latvia. Under the agreement, the Group is committed to making
staged, conditional payments via debt and equity to partially fund the project.
The eventual cost of the acquisition of the investment in SIA Patollo is
dependent on the value of the shopping centre on completion of the development.

As at 30 June 2007, the funding committed to the project, comprised of
£4,970,000 paid for 17.7% of the share in SIA Patollo and a loan of £1,685,000
to SIA Patollo bearing interest of 25% per annum.


6 Share capital and share premium

AUTHORISED:                              Number of             £'000
                                          Ordinary
                                         Shares of
                                          1 p each

30 June 2006 and 31 December 2006      200,000,000             2,000
17 May 2007 - Increase of authorised   
share capital                          150,000,000             1,500
                                      ____________         _________

30 June 2007                           350,000,000             3,500
                                      ____________         _________


On the 17th of May 2007 the authorised share capital of the Company was
increased to £3,500,000 by the creation of 150,000,000 ordinary shares of 1p
each

ISSUED:                                  Number of   
                                            Shares    Share    Share
                                        Issued and  Capital  Premium 
                                        Fully Paid    £'000    £'000         
Ordinary shares of 1p each
                                       _____________________________
Balance at 30 June 2006 and 31         
December 2006                          145,430,015   1,454   125,556
                                       _____________________________

23 February 2007 - share option        
exercised                                  600,000       6       594
18 May 2007 - issue for cash            83,333,334      833   99,167
18 May 2007 - placing cost                       -        -  (3,304)
                                       _____________________________

Balance at 30 June 2007                229,363,349    2,293  222,013
                                       _____________________________



On the 23 February 2007, Numis Securities Limited exercised a portion of their
option, and purchased 600,000 ordinary shares at £1 per share.

On the 18 May 2007, the Company issued 83,333,334 ordinary shares in relation to
its public offering at £1.20 per share. The Company incurred costs of £
3,304,000 relating to the issue of shares. These equity transaction costs were
deducted from equity in accordance with IAS 32, Financial Instruments Disclosure
and Presentation.


7 Notes to the Cash Flow Statement

                                          30-Jun-07 30-Jun-06 31-Dec-06
GROUP
Cash generated from operations                £'000     £'000     £'000

Profit for the period                         5,977     4,558    36,022
Adjustments for:
Increase in fair value of interest       
rate swaps                                  (2,276)   (1,624)   (2,246)
Increase in fair value of financial         
liabilities                                     841         -     1,147
Unwinding of unrealised direct issue         
costs of borrowings                             494       174        63
Net other finance (income) / expense          4,518     (556)     3,004
Increase in fair value of investment 
property                                          -         -  (36,792)
Income tax expense                            1,183       618    10,739
Unrealised foreign exchange (loss)/gain     (1,186)         -   (1,388)

                                          _____________________________
Operating cash flows before movements in   
working capital                               9,551     3,170    10,549
                                          _____________________________

Decrease/(Increase) in receivables            3,897     1,579   (3,091)
Increase in payables                          (770)   (3,467)   (4,518)
                                          _____________________________

Cash generated from operations               12,678     1,282     2,940
                                          _____________________________



8 Dividends

                                                   30-Jun-07  31-Dec-06
                                                       £'000      £'000
GROUP
Dividend paid in 2006 for the year                         -      2,909
Dividend paid in 2007 for the year                         -      5,841
Dividend declared for the year                         4,868          -
                                                  _____________________

                                                       4,868      8,750
                                                  _____________________


An interim dividend of 3.33p per share for the year ended 31 December 2007 was
declared on the 24 April 2007 and will be paid on 28 September 2007 to ordinary
shareholders on the register at close of business on 4 May 2007.



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