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Engel East Europe NV (KBE)

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Friday 11 April, 2008

Engel East Europe NV

Further re: Trading Update

Engel East Europe N.V.
11 April 2008

FOR IMMEDIATE RELEASE                                            11 April 2008

                             Engel East Europe N.V.

                           FURTHER RE: TRADING UPDATE

On 25 January 2008, Engel East Europe NV ('Engel East' or 'the Company')
announced its intention to dis-continue and dispose of its non-core operations
in Canada and Germany.

The Board of Engel East is keen to clarify that the assets in Canada are
currently subject to litigation, which has been brought by a local real estate
development and management company and one of its shareholders against certain
companies connected to Engel East and Lehman Brothers Inc., its partner in
Canada.  The defendants do not include the Company.  The Court adjudicating on
this matter has imposed certain safeguard orders against the Company's Canadian
assets, as a consequence of which the Company is forbidden from disposing of
these assets without the approval of the Court so to do.  At this stage, the
Company is unable to comment on any of the likely outcome of the litigation or
its duration, or the likelihood of obtaining Court approval to dispose of the
assets.

The audited carrying value of the Company's assets in Canada, as at 31 December
was €2.2 million.  It remains the Company's intention to dispose of these
assets, subject to the obtaining of the relevant Court approval.  The audited
aggregate carrying value for the Company's investment property and inventory of
housing units, as at 31 December 2007 of €102.8 million.

ENDS

Enquiries:

Engel East Europe N.V.
Eitan Padan                                                Tel: +972 (9)970 7004
Sam Salman                                                 Tel: +1 (646)214-2000

Dawnay, Day Corporate Finance Limited                  Tel: +44 (0) 207 509 4570
Gerald Raingold
Nick Lovering

Bankside Consultants                                   Tel: +44 (0) 207 367 8888
Simon Bloomfield
Andy Harris


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