East Capital Explorer AB - Interim Report 1 January - 30 June 2012

Net asset value (NAV) per share on 30 June 2012 amounted to EUR 8.60 (EUR 10.97). The total net asset value amounted to EUR 290m (EUR 382m), corresponding to a decrease of 9.7% (-9.1%) during the second quarter. Since 30 June 2011 the net asset value decreased 24.1%(3) (-0.3%)

For the first six months, the net result for the Group was EUR -3.2m (EUR -40.1m). For the shareholders of the Parent Company the net result was EUR -1.4m (EUR -34.7m) and earnings per share amounted to EUR -0.04 (EUR -1.00)

Cash, cash equivalents and other short term investments on 30 June 2012 amounted to EUR 57m (EUR 66m) of which EUR 49m (EUR 61m)were available for future investments

In April, the AGM of East Capital Explorer approved the Board's proposal to pay a dividend to the shareholders of SEK 0.80 per share. The AGM also approved the Board's proposal to cancel the 1,141,969 shares previously repurchased and the shares were cancelled in the end of June. The AGM also decided on a new repurchase mandate for the Board

In May, East Capital Explorer divested its entire holding in TEO LT to TeliaSonera. In total, the Company received EUR 19.5m including dividend, EUR 1.6m higher than the value as of 31 March, and realized an annualized pre-tax return of 17.4%

The earlier announced investment of EUR 10m in the East Capital Baltic Property Fund II took place on 2 May

The mandatory takeover offer in Melon Fashion Group (MFG) was completed during the second quarter and the number of shares tendered was limited, corresponding to a total purchase price of EUR 5.4m

A revaluation of East Capital Explorer's direct investment in MFG was made during May. As a result, on 31 May the fair value of the holding amounted to EUR 34m, corresponding to an increase of 48%

During June, East Capital Explorer announced two distributions from its fund investments. The Company received its third distribution from the East Capital Power Utilities Fund amounting to EUR 7.3m in June and a second distribution of EUR 10.6m from the East Capital Special Opportunities Fund which was paid out in mid-July

The closing price of the East Capital Explorer share as of 30 June 2012 was SEK 47.50 (corresponding to EUR 5.42)

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Source: East Capital Explorer AB via Thomson Reuters ONE