East Capital Explorer AB - Interim Report 1 January - 31 March 2014

Events during the first quarter

   * In February, the value of East Capital Explorer's holding in Russian fashion
     retailer Melon Fashion Group (MFG) was depreciated by EUR 8.5m or 12
     percent, corresponding to the decline of the rouble against the euro since
     December 2013, when the most recent external valuation of MFG was made. The
     holding is thereby valued at EUR 62.0m. The underlying growth and
     profitability forecasts that the valuation is based on, are however
     unchanged

   * At the Extraordinary General Meeting on 24 March, it was decided to
     introduce a new class of shares, preference shares, and to authorise the
     Board to issue such preference shares in order to take advantage of
     attractive investment opportunities with strong cash flow and good growth.
     The EGM also decided on a number of changes required to adapt the company to
     EU's new regulatory framework for alternative investment fund managers
     (AIFMD)

   * In March, East Capital Explorer received a final pay-out totaling EUR 14.0m
     from East Capital Special Opportunities Fund, that was liquidated in
     accordance with the fund's original four plus one year investment cycle. The
     pay-out corresponds to an annualised return on the investment of 9.4 percent

   * The market sentiment towards Russia, which represents close to half of East
     Capital Explorer's geographic exposure, deteriorated considerably in March
     when Russia decided to formally annex the Crimea. The effect on East Capital
     Explorer's portfolio is most visible in its public fund holdings with
     Russian focus, most notably through East Capital Russia Domestic Growth
     Fund, representing 10 percent of the portfolio, which lost 29 percent in the
     quarter, and through the 12 percent depreciation of MFG, which represents
     22 percent of the portfolio, due to the decline of the rouble (see above).
     The exposure towards Ukraine is insignificant with East Capital Bering
     Ukraine Fund R, that lost 17 percent in the quarter, having a portfolio
     weight of only 1 percent

Financial results for the first quarter

   * Net asset value (NAV) per share on 31 March 2014 amounted to EUR 9.17 (9.30
     EUR)(1). The total NAV amounted to EUR 288m (EUR 292m) corresponding to a
     decrease of 6.8 percent during the first quarter

   * The net result for the first quarter was EUR -21.1m (EUR 6.1m), including
     EUR -21.0m (EUR 6.0m) changes in value of investments. Earnings per share
     amounted to EUR -0.67 (EUR 0.19)

   * Cash, cash equivalents and other short term investments on 31 March amounted
     to EUR 53.8m (EUR 24.2m)

(1 )Comparable figures for the corresponding period 2013 are stated in
parentheses

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 Source: East Capital Explorer AB via GlobeNewswire