Final Results

Dawnay, Day Carpathian PLC
24 April 2006

Dawnay, Day Carpathian PLC

Period from incorporation on 2 June 2005 to 31 December 2005

Highlights


• Admitted to AIM in July 2005 and raised £140m before expenses

• Acquired 3 commercial retail portfolios for a combined total of £84.3m

• Delivered initial dividend and on track to meet target dividend for
  2006

• Strong pipeline of acquisitions

• Exploring value enhancing opportunities within existing portfolio

Rupert Cottrell, Chairman of Dawnay, Day Carpathian, said 'In a relatively short
period, we have established a strong presence amidst our target markets. The
Company is confident that there are sufficient opportunities which meet its
investment criteria and expects that, as previously stated, it will be
substantially invested by the end of 2006 without having to compromise on the
quality of its acquisitions.

Enquiries:

Dawnay, Day Carpathian PLC      Peter Klimt             020 7834 8060
                                Paul Rogers

Cardew Group                    Tim Robertson           020 7930 0777
                                Catherine Maitland


CHAIRMAN'S STATEMENT

Introduction

I am pleased to be able to report that Dawnay, Day Carpathian plc ('Dawnay, Day
Carpathian' or the 'Company') continues to make good progress since it was
admitted to the AIM market in July 2005. At the time of flotation the Company
raised £140m (before expenses) which, together with bank borrowings, will
facilitate the creation of a geared €1 billion portfolio of retail properties.
Our investment strategy remains focused on acquiring suitable commercial retail
properties such as shopping centers, supermarkets and retail warehousing in
Central and Eastern Europe and we have been successfully executing this
strategy.

Operational review

Since July of 2005, Dawnay, Day Carpathian has rapidly established itself as a
leading presence within the Central and Eastern European commercial property
sector. As a result, the Company has generated a wide circle of contacts,
including investors, developers and agents, through whom the Company is being
presented with many suitable acquisitions. Currently we are processing a
satisfactory range of suitable opportunities for inclusion in the portfolio. Our
selection criteria remain robust and are based upon identifying retail assets
with sustainable income, prospects for income and capital growth and for value
enhancement through asset management.

The current portfolio comprises of five shopping centres and one warehouse park:

• Varayada Shopping Centre - Karlovy Vary, Czech Republic 
• Tulipan Centre - Lodz, Poland
• Osowa - Gdansk, Poland
• Kometa - Torun, Poland
• Centrum Sosnowiec - Sosnowiec, Poland
• Antana Warehouse Park - Budapest, Hungary

Shortly an application will be made to redevelop the Antana Warehouse Park in
Budapest, from light industrial and office units into a circa 50,000 sq m retail
centre. Negotiations are commencing for the required permitting, and the
exercise carried out earlier this year to canvas retail interest has received
positive responses.

The transfer of Dawnay, Day Group's 50% share in the four shopping centres in
Hungary anticipated as part of the initial pipeline investments for the Company,
is now to include the entire 100% interest in these properties. Completion of
the acquisition has been delayed by tax and legal complications but is expected
to complete shortly. These Hungarian assets due for completion will add a
further £41.5 million of investment to the Company's portfolio.

Financial Results

During the period under review, the Company made three acquisitions for a
combined total of £84.3 million. These assets generated net rental income for
the period of £1.16 million, which equates to an annualised return of
approximately 25% on the equity invested. The acquisitions have been funded
through £21.2 million of equity and £63.1 million of debt. A re-valuation of the
Company's assets by DTZ took place at the period-end and resulted in a valuation
increase of £2.5 million. Basic earnings per share for the period were 4.8p.

The administrative expenses amounted to approximately £701,000 for the period,
which is in line with our original estimate of establishing a long-term business
in a new geographical region.

In line with its stated strategy, the Company paid a dividend in December 2005
of 3p per share equating to a 3% yield based upon the placing price of 100p per
share. The Company is also intending to pay a 6p per share dividend for the year
ending 31 December 2006.

Investment Pipeline

We have a strong pipeline of acquisitions. In total, the Company is in advanced
due diligence on a number of substantial transactions which, once completed,
will bring the Company well in line with its target acquisition plan.

These transactions vary between properties in primary city centres to provincial
convenience centres and range from the Baltic States, through Central and
Eastern Europe to Romania and Bulgaria. In addition, the Company has a strategic
agreement to acquire a roll out programme of supermarket developments, which are
likely to comprise approximately £70 million of assets per annum over each of
the next three years.

Management

In March 2006, Ross MacDiarmid resigned as a director of Dawnay, Day Europe
Limited. Paul Rogers and Massimo Marcovecchio continue to have managerial
responsibility for Dawnay, Day Europe Limited supported by an increased team of
14 members.

Outlook

Our focus is upon creating a superior commercial retail property portfolio.
Penetration by the Company into wider property sub markets and recognition of
the Dawnay, Day brand give rise to a broad range of opportunities and pricing
levels. Market activity to date has seen a marked increase in transactional
volumes in the territory increasing from £949 million in 2004 to £1,707 million
approximately in 2005 (source: DTZ research, March 2006).

The Company is confident that there are sufficient opportunities which meet its
investment criteria and expects that, as previously stated, it will be
substantially invested by the end of 2006 without having to compromise on the
quality of its acquisitions.


Rupert Cottrell
Chairman



INCOME STATEMENT                    Note                  Company         Group
                                                                £             £

Gross rental income                 3                           -     1,485,519
Service charge income                                           -       494,073
Service charge expense                                          -      (424,650)
Property operating expenses                                     -      (394,614)  
                                                      ___________   ___________         
Net rental and related income                                   -     1,160,328

Changes in fair value of            
investment property                 7                           -     2,468,706

Excess of acquirer's interest                                   
in the net fair value of
acquiree's identifiable
assets, liabilities and
contingent liabilities over
cost                                                            -        69,941

Net Foreign Exchange gain                                 433,933       608,639

Administrative expenses                                 (362,417)     (701,102)

Net other income                                                -        32,433
                                                      ___________   ___________         
Net operating profit before                                
net financing income                                       71,516     3,638,945
                                                      ___________   ___________         

Financial income                                        2,795,106     3,007,062
Financial expense                                               -   (1,009,461)       
                                                      ___________   ___________         
Net financing income                4                   2,795,106     1,997,601
                                                      ___________   ___________         
Net profit before tax                                   2,866,622     5,636,546

Income tax expense                  5                           -     (702,796)
                                                      ___________   ___________         
PROFIT FOR THE PERIOD                                   2,866,622     4,933,750

Attributable to:                                      ___________   ___________                                         
Equity holders of the Company                           2,866,622     4,909,679
Minority Interests                                              -        24,071

Basic and diluted earnings per
share for profit attributable
to the equity holders of the
Company during the year
(expressed as pence per share)

Basic earnings per share            6                                       4.8
Diluted earnings per share          6                                       4.7



BALANCE SHEET                       Note                  Company         Group
                                                                £             £
ASSETS
Non current assets
Investment in subsidiaries                                  8,603             -
Investment property                 7                           -    87,054,370
Loan to subsidiary                                     20,430,343             -
Goodwill                                                        -     3,698,346
Deferred income tax assets          8                           -       127,305
                                                      ___________   ___________         
                                                       20,438,946    90,880,021
                                                      ___________   ___________ 

Current assets
Trade and other receivables         9                     353,993     2,036,675
Cash and cash equivalents                             123,466,020   126,144,770
Financial assets                                                -       399,323
                                                      ___________   ___________         
                                                      123,820,013   128,580,768
                                                      ___________   ___________         
TOTAL ASSETS                                          144,258,959   219,460,789
                                                      ___________   ___________         

EQUITY
Issued Capital                      10                  1,454,300     1,454,300
Share Premium                       10                125,556,323   125,556,323
Distributable Reserves                                 12,631,489    14,674,546
Foreign Exchange Movement                                       -       (95,033)
                                                      ___________   ___________         
Total equity attributable to                 
equity holders of the parent                          139,642,112   141,590,136
                                                      ___________   ___________         

Minority Interest                                               -       229,773
                                                      ___________   ___________         
TOTAL EQUITY                                          139,642,112   141,819,909
                                                      ___________   ___________         

LIABILITIES
Non-current liabilities
Bank loans                                                      -    60,971,511
Deferred income tax liabilities     8                           -     4,943,082
                                                      ___________   ___________         
                                                                -    65,914,593
                                                      ___________   ___________         
Current liabilities
Trade and other payables            11                    253,947     4,887,286
Bank loans                                                      -     2,476,101
Dividends payable                   12                  4,362,900     4,362,900
                                                      ___________   ___________         
                                                        4,616,847    11,726,287
                                                      ___________   ___________         
                                                      ___________   ___________         
TOTAL LIABILITIES                                       4,616,847    77,640,880
                                                      ___________   ___________         
TOTAL EQUITY AND LIABILITIES                          144,258,959   219,460,789
                                                      ___________   ___________         



CASH FLOW STATEMENT                 Note                  Company         Group
                                                                £             £
Cash flows from operating activities
Cash (used in) / generated from     
operations                          13                    (28,530)    2,706,408
                                                      ___________   ___________         
Net cash (used in) / generated from                       
operating activities                                      (28,530)    2,706,408
                                                      ___________   ___________         

Cash flows from investing activities
Capital expenditure on investment                               
property                                                        -       (22,849)
Investment in subsidiary                                   (8,603)            -
Interest received                                       2,795,106     2,470,348
Acquisition of subsidiaries                                     -    (6,483,768)
Loans advanced to subsidiaries before                           
acquisition                                                     -   (10,342,575)
Loan to subsidiary                                    (18,673,359)            -
                                                      ___________   ___________         
Net cash used in investing activities                 (15,886,856)  (14,378,844)
                                                      ___________   ___________         

Cash flows from financing activities
Proceeds on issue of shares, net of 
share issuance costs                12                139,381,406   139,381,406
Interest paid                                                   -      (778,495)
Repayments of borrowings                                        -      (294,846)
                                                      ___________   ___________         
Net cash generated from financing                     
activities                                            139,381,406   138,308,065   
                                                      ___________   ___________         
Net increase in cash and cash                         
equivalents                                           123,466,020   126,635,629
Cash and cash equivalents at the                                
beginning of the period                                         -             -
Exchange losses on cash and cash                                
equivalents                                                     -      (490,859)
                                                      ___________   ___________         
Cash and cash equivalents at the end                  
of the period                                         123,466,020   126,144,770
                                                      ___________   ___________         




STATEMENT OF CHANGES IN EQUITY

                           Share         Share     Minority   Translation     Retained          
                         Capital       Premium     Interest       Reserve     Earnings           Total
GROUP        Note              £             £            £             £            £               £
                       _________  ____________   __________    __________   __________   _____________                  
                                              
Issue of       
share
capital        10      1,454,300   144,468,545            -             -            -     145,922,845
Costs of                       
issue of
shares                         -    (5,389,998)          -              -            -      (5,389,998)
Recognition                    
of
share-based
payments                       -        605,543          -              -            -         605,543
Acquisition                    
of
subsidiaries                   -              -    205,702              -            -         205,702
Profit for                     
the period                     -              -          -              -    4,933,750       4,933,750
Minority                       
interest                       -              -     24,071              -      (24,071)              -
Share          
premium
release        10              -    (14,127,767)         -              -   14,127,767               -
Dividend       
declared       12              -              -          -              -   (4,362,900)     (4,362,900)
Translation                    
into
presentation
currency                       -              -          -        (95,033)           -         (95,033)
                       _________  ____________   __________    __________   __________   _____________                  
Balance as             
at
31 December
2005                   1,454,300    125,556,323    229,773        (95,033)  14,674,546     141,819,909
                       _________  ____________   __________    __________   __________   _____________                  

                           Share         Share     Minority   Translation     Retained          
                         Capital       Premium     Interest       Reserve     Earnings           Total
COMPANY      Note              £             £            £             £            £               £
                       _________  ____________   __________    __________   __________   _____________                  
Issue of      
share
capital       10       1,454,300   144,468,545            -             -            -     145,922,845
Costs of                       
issue of
shares                         -    (5,389,998)           -             -            -      (5,389,998)
Recognition                    
of
share-based
payments                       -       605,543            -             -            -         605,543
Profit for                     
the period                     -             -            -             -    2,866,622       2,866,622
Share         
premium
release       10               -   (14,127,767)           -             -   14,127,767               -
Dividend      
declared      12               -             -            -             -   (4,362,900)     (4,362,900)
                       _________  ____________   __________    __________   __________   _____________                  
Balance as             
at
31 December
2005                   1,454,300   125,556,323            -             -   12,631,489     139,642,112
                       _________  ____________   __________    __________   __________   _____________                  


Abbreviated notes to the Consolidated financial statements

1 Accounting basis

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

The consolidated and company accounts for Dawnay, Day Carpathian PLC (The
'Group') have been prepared for the period from incorporation on 2 June 2005 to
31 December 2005.

The financial information set out above does not constitute the Group's or
Company's statutory accounts for the period from incorporation on 2 June 2005 to
31 December 2005. The figures for the period from incorporation on 2 June 2005
to 31 December 2005 are extracted from the audited Group and Company financial
statements ('the financial statements'). A copy of the financial statements, on
which the auditors have issued an unqualified report, will be lodged with the
Registrar of Companies. The results for the period from incorporation on 2 June
2005 to 31 December 2005 have been prepared on the basis of the accounting
policies set out in the financial statements.

2 Significant accounting policies

The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS), details of accounting
policies adopted by the Group can be found in the financial statements.

3 Gross rental income
                                                                               £

Gross lease payments collected/accrued                                 1,485,519

The Group leases out its investment property under operating leases. All
operating leases are for terms of 1 - 10 years.

4 Net financing income
                                              Company             Group
                                                    £                 £

Interest income from financial              
institutions                                2,464,648         2,470,348
Interest income from                          
subsidiary                                    330,458                 -
Fair value adjustment of                            
interest rate swaps                                 -           200,290
Fair value adjustment of loans                      
held to maturity                                    -           336,424
                                           __________       ___________
Financial income                            2,795,106         3,007,062
                                           __________       ___________
Gross interest expenses                             -        (1,009,461)
                                           __________       ___________
Net financing costs                         2,795,106         1,997,601
                                           __________       ___________

5 Income tax expense

Recognised in the income statement                                Group
                                                                      £
Current tax expense
Current year                                                    228,976

Deferred tax expense
Origination of temporary                                        
differences                                                     473,820
                                                            ___________
Total income tax expense in the                                 
income statement                                                702,796
                                                            ___________



6 Earnings per share

Basic earnings per share

The calculation of basic earnings per share for the period ended 31 December
2005 was based on the profit attributable to ordinary shareholders of £
4,909,679 and a weighted average number of ordinary shares outstanding during
the period ended 31 December 2005 of 102,101,808.

Diluted earnings per share

The calculation of diluted earnings per share for the period ended 31 December
2005 was based on the profit attributable to ordinary shareholders of £
4,909,679 and a weighted average number of ordinary shares outstanding during
the period ended 31 December 2005 of 103,356,615.

7 Investment property
                                                                      £

Acquisitions through business                                
combinations                                                 83,265,238
Additions                                                        22,849
Increase in fair value                                        2,468,706
Foreign exchange effect                                       1,297,577
                                                            ___________
Balance at 31 December 2005                                  87,054,370
                                                            ___________


The fair value of the Group's investment property at 31 December 2005 has been
arrived at on the basis of a valuation carried out at that date by DTZ Debenham
Tie Leung, independent valuers.

The Group has pledged each of its investment properties to secure related
interest bearing debt facilities granted to the Group for the purchase of such
investment properties.

8 Deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following items:

                                         Group Assets Group Liabilities
                                                    £                 £
Property valuation                                  -         4,917,106
Swap valuation                                      -            25,976
Accrued interest                               44,136                 -
Tax loss                                       29,706                 -
Other temporary differences                    53,463                 -
                                            _________        __________
                                              127,305         4,943,082
                                            _________        __________

9 Trade and other receivables

                                              Company             Group
                                                    £                  £
Trade receivables                                   -          1,197,635
Prepayments                                    19,448            666,868
Accrued interest on                           
intercompany loans                            334,545                  -
Tenant deposits                                     -            172,172
                                            _________         __________
                                              353,993          2,036,675
                                            _________        __________


10 Share capital and share premium

Authorised:                                 Number of                 £
                                      Ordinary Shares
                                          of 1 p each

31 December 2005                          200,000,000         2,000,000


The Company was incorporated on 2 June 2005 with an authorised share capital of
£ 2,000, comprising 100 founder shares of £1 each and 190,000 unclassified
shares of 1p each.

On 17 June 2005 the authorised share capital was restructured to 200,000 shares
of 1p each by conversion of the founder shares to 10,000 ordinary shares of 1p
each and conversion of the unclassified shares to 190,000 ordinary shares of 1p
each.

On the same day the authorised share capital of the Company was increased to £
2,000,000 by the creation of 199,800,000 ordinary shares of 1p each.

Issued:                             Number of        
                                       Shares      
                                   Issued and        Share        Share
                                   Fully Paid      Capital      Premium
                                                         £            £
Founder shares of £1 each
2 June 2005 Founder Shares                100          100            -
                                _____________    _________  ___________

Ordinary shares of 1p each
17 June 2005 conversion of             
founder shares                         10,000          100            -
1 August 2005 - issue for cash    140,000,000    1,400,000  138,600,000
1 August 2005 - placing costs               -            - ( 5,389,998)
1 August 2005 - recognition of              
share-based payments                        -            -      605,543
16 October 2005 - issued for        
cash                                3,856,862       38,569    4,127,192
16 November 2005 - acquisition      
of BHA Czech s.r.o.                 1,563,153       15,631    1,741,353
                                _____________    _________  ___________
                                  145,430,015    1,454,300  139,684,090
                                _____________    _________  ___________
14 December 2005 - Transfer to              
distributable reserves                      -            - (14,127,767)                
                                _____________    _________  ___________
At the end of the year            145,430,015    1,454,300  125,556,323
                                _____________    _________  ___________


11                  Trade and other payables

                                              Company             Group
                                                    £                 £
Trade payables                                 82,659         2,532,906
Tenant deposits                                     -           610,903
Related party payables                          8,603           608,515
Income received in advance                          -           452,983
Tax payable                                         -           258,424
Accrued interest                                    -           230,966
Accrued expenses                              162,685           192,589
                                           __________       ___________
                                              253,947         4,887,286
                                           __________       ___________

12 Dividends

                                                                     £

Special dividend for the period ended 31 December 2005        
of 3p per share.                                              4,362,900

A special dividend of 3p per share for the period ended 31 December 2005 was
declared on the 15 December, and paid on 6 January 2006 to ordinary shareholders
on the register at close of business on 23 December 2005.

13 Notes to the cash flow statement
                                              Company             Group

Cash generated from operations                      £                 £

Profit for the period                       2,866,622         4,933,750
Adjustments for:
Excess of acquirer's                                -          (69,941)
Increase in fair value of interest rate             
swaps                                               -         (200,290)
Increase in fair value of bank loan                 -         (336,424)
Net other finance income                  (2,795,106)       (1,460,887)
Increase in fair value of investment                
property                                            -       (2,468,706)
Income tax expense                                  -           702,796
                                         ____________      ____________
Operating cash flows before movements          
in working capital                             71,516         1,100,298
                                         ____________      ____________
(Increase) / decrease in receivables        (353,993)         5,864,791
Increase / (decrease) in payables             253,947       (4,258,681)
                                         ____________      ____________
Cash generated from operations               (28,530)         2,706,408
                                         ____________      ____________

14 Events after the balance sheet date

There were no significant events after balance sheet date.

15 Financial statements

Copies of the 2005 financial statements will be sent to all shareholders as soon
as practical. Copies of these documents will be available to the public at the
offices of the company: St James's Chambers, Athol Street, Douglas, Isle of Man.


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