Acquisition

Equest Investments Balkans Ltd
25 May 2007

25 May 2007




                       EQUEST INVESTMENTS BALKANS LIMITED


    EQUEST ANNOUNCES ACQUISITIONS OF ELECTRONICS RETAIL BUSINESSES IN 
                             SERBIA AND MONTENEGRO



Equest Investments Balkans Ltd ('EIB' or the 'Company'), the specialist
investment company focused on retail and financial services, infrastructure and
property development in South Eastern Europe, today announces two new
acquisitions in the electronics retail sector in Serbia and Montenegro.


Technomarket Serbia and Montenegro


EIB has signed a binding agreement to acquire a 23% shareholding in Tehnik&Kom
(Serbia) and a 50% shareholding in K & K Electronics (Montenegro).  These
businesses operate wholesale and retail operations of household appliances and
consumer electronics in Serbia and Montenegro under the Technomarket brand, with
a regional network of 13 stores in Serbia as well as wholesale operations in
Montenegro. Both companies are in an active programme of launching new stores in
their respective markets. The total aggregate consideration of €5.7 million will
be funded by cash from EIB's own resources in the form of an equity subscription
for €1.7 million and a €4.0 million shareholder loan. EIB will have options to
acquire the remaining share capital of Tehnik&Kom (Serbia) and K & K Electronics
(Montenegro) in stages commencing in 2008 at a price to be determined by an
agreed formula based upon sales and EBITDA.


Tehnik&Kom had consolidated sales of over €40 million in the year ended 31
December 2006, up from €27 million for the year ended 31 December 2005. EBITDA
for the year ended 31 December 2006 was €262,000.


K&K Electronics (Montenegro) began operations in August 2006 and reported sales
of €3 million as at 31 December 2006.


Completion of the acquisition, which is subject to customary conditions, is
expected to occur on or before 15 June 2007.


Technomobile Serbia


EIB has signed a binding agreement to acquire a 50% shareholding of Technomobile
Corporation (Serbia) ('Technomobile') for a total consideration of €1.6 million.
The acquisition will be funded by cash from EIB's own resources in the form of
an equity subscription for €850,000 and a €750,000 shareholder loan.
Technomobile operates a chain of over 20 retail stores selling GSM sets, small
consumer electronics devices and complementary services, making it one of the
largest such retailers in Serbia.


Completion of the acquisition, which is subject to customary conditions, is
expected to occur on or before 31 May 2007.


Petri Karjalainen, Managing Partner of Equest Partners, the advisory company to
EIB, said today: 'These investments further strengthen EIB's position in the
fast growing electronics retails sector in the Balkan region. EIB also owns 75%
of Technomarket Bulgaria, which is the market leader in the consumer electronics
retail market in Bulgaria.  These  acquisitions in Serbia and Montenegro mark
the first stage of our investment programme to acquire majority stakes in the
companies that operate the Technomarket brand in these markets which are still
at an earlier stage of development, but with significant growth potential for
the coming years.'


For further information please contact:

Equest Partners Limited

+ 44 20 7240 7600
Petri Karjalainen
Naomi Kora


Collins Stewart Europe Limited

+ 44 20 7523 8325
Hugh Field


Financial Dynamics

+ 44 20 7831 3113
Ed Gascoigne-Pees
Nick Henderson


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