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27 January 2009

EUROPEAN CONVERGENCE PROPERTY COMPANY PLC

('ECPC' OR 'THE COMPANY')

Breach of Warranty Claims

Further to announcements made by the Company on 1 August and 11 October 2007 relating to the sale of three Romanian properties, ECPC announces that the purchaser of the three properties has made claims totalling up to €4.5 million against the deferred proceeds of sale for alleged breaches of warranties contained in the sale and purchase agreements.

The Company's Investment Manager is assessing these claims and is taking both legal and technical advice but, with the exception of a claim for €0.8 million for which provision was made in the accounts for financial year ended 30 June 2008, the Directors do not believe that the claims, which were in any event made after the contractual deadline, have been or can be adequately substantiated and they intend to vigorously resist them.  

A further announcement will be made in due course. 

 

For further information please contact:

Enquiries:

European Convergence Property Company plc                                                          +44 (0)1624 640200

Anderson Whamond

Charlemagne Capital                                                                                              +44 (0)20 7518 2100

Christopher Fitzwilliam Lay/Varda Lotan

Panmure Gordon (UK) Limited                                                                                +44 (0)20 7459 3600

Hugh Morgan/Stuart Gledhill

Smithfield Consultants                                                                                           +44 (0)20 7903 0669

John Kiely/ Gemma Froggatt

Website: www.europeanconvergence.com

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