Trading Statement

Dawnay, Day Carpathian PLC
01 February 2007


                        DAWNAY, DAY CARPATHIAN PLC

      Year end trading update and affirmation of 2007 dividend target

Dawnay Day Carpathian PLC ('DDC' or the 'Company') is pleased to provide a
trading update on its activities for the 12 months ended 31 December 2006 and to
comment on the current investment pipeline and future dividend targets.

The Company also announces that the asset manager Dawnay, Day Europe has changed
its name to Dawnay, Day Panterra. There are no other changes involved other than
to the name.

Since July 2005, DDC has completed 12 property transactions for a total value of
£338 million, committing in aggregate £92 million of equity. DDC has
subsequently commissioned DTZ to provide an updated valuation on the portfolio
for the year end accounts which is anticipated to be completed within the next
month and is expected to produce an attractive valuation uplift. The Company is
also presently negotiating the completion of a number of transactions which will
ensure the fund is substantially invested within the next few months.

After protracted negotiations, the Company has also now signed exclusive,
detailed Heads of Terms, involving an initial equity commitment of approximately
a further £20 million, for the forward funding of a major city shopping centre,
having an estimated gross development value of approximately £137 million. The
equity investment benefits from a prior return during the development phase
(expected to be 30 to 36 months) and is secured against the ownership of the
development site. On completion of the development the Company takes a majority
ownership of the shopping centre in joint venture with the developer. Part of
this funding commitment has been invested through DDC's direct purchase of part
of the existing site comprising a 5,000 sq m vacant building at a price just
under £9 million, part funded with debt of £5.2 million. Substantial retailer
interest has been shown in the project.

The Company's pipeline of future transactions remains strong and it is currently
at varying stages of negotiation on transactions worth over £170 million. In
addition, in the medium term, a substantial number of forward commitment
development project opportunities exist which the Company is seeking ways to
pursue.

The existing portfolio of investments is performing to expectations, with a
focus on asset management opportunities including: early lease renewals;
development of additional space to expand the total lettable area; new lettings
and lease extensions; and the reduction of vacant lettable space.

In the Company's admission document in July 2005, DDC stated it would target a
dividend per share of approximately 10p following full investment of the fund
for the 12 months to 31 December 2007. The Directors are pleased to advise that,
barring unforeseen circumstances, it remains the Company's objective to
recommend a total dividend pay out in line with these objectives (2006: 6p per
ordinary share). Preliminary results for the 12 months ended 31 December 2006
will be announced in April 2007.

Rupert Cottrell, Chairman of Dawnay, Day Carpathian said: 'We are well on our
way to developing a substantial, income producing, and geographically diverse
portfolio of commercial property in Eastern and Central Europe. We believe there
is significant potential to create additional income streams from our existing
portfolio and together with the transactions in the immediate pipeline the
Company is well positioned to achieve its objectives. I look forward to
providing a more detailed update on the Company's progress in April at the time
of the results.'

Enquiries:

Dawnay, Day Panterra         Peter Klimt                   020 7834 8060
                             Paul Rogers
                             Balazs Csepregi

Cardew Group                 Tim Robertson                 020 7930 0777
                             Catherine Maitland


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