East Capital Explorer invests in new East Capital Bering New Europe Fund

East Capital Explorer has decided to invest EUR 10m (corresponding to approximately SEK 94m) in the new East Capital Bering New Europe Fund. The investment provides East Capital Explorer's shareholders with exposure to attractive companies in fast growing sectors in the Central European and Baltic markets including the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Slovakia and Poland.

These countries have turned their plan economies into market economies, became members of the EU in 2004 and recently also joined the Schengen zone. The euro is expected to be assumed as currency in the future and between 2007 and 2013 these countries will receive approximately EUR 127bn in EU convergence funds (20 percent of total annual GDP). The convergence of these countries to the EU income level is expected to continue.

The fund will focus on investments in second and third tier stocks but can also invest in pre-IPO situations and unlisted companies. The fund is expected to be able to start its investment activities immediately upon launch. The fund will open for new investors starting on 31 May 2008.

East Capital Explorer will not pay a subscription fee on the investment. Other terms are the same as for the future shareholders' with an annual management fee of 2 percent on NAV and a performance fee of 20 percent on a high water mark. Certain redemption fees apply during first four years of investment. East Capital Explorer is expected to participate in a fund opening exclusively for East Capital Explorer at the end of April 2008.

The investment corresponds to 2.6 percent of the proceeds from the IPO. This means that East Capital Explorer to date has announced investments totaling EUR 202m, corresponding to almost 52 percent of the IPO proceeds.

Contact information:
Gert Tiivas, CEO East Capital Explorer +46 8 505 977 30
Louise Hedberg, Head of Communications/IR East Capital Explorer +46 8 505 977 20

Financial reporting calendar - East Capital Explorer:

• Monthly Net Asset Value report on the fifth working day after the end of each month
• Interim report 1 January - 31 March 2008 on 14 May 2008
• Interim report 1 January - 30 June 2008 on 21 August 2008
• Interim report 1 January - 30 September 2008 on 13 November 2008

About East Capital Explorer - East Capital Explorer AB is a Swedish company, created with the specific aim of bringing unique investment opportunities in Eastern Europe to a broader investor base. The company invests mainly in East Capital's private equity and semi-public equity funds that provide exposure to companies not otherwise accessible via the local stock exchanges in Eastern Europe. East Capital Explorer targets fast growing sectors such as the power utilities, financial, retail and consumer goods and real estate sectors. East Capital Explorer has appointed East Capital to manage its investment activities. Since 9 November 2007, East Capital Explorer is listed on the OMX Nordic Exchange Stockholm, Mid Cap.