25 August 2009

ORCHID DEVELOPMENTS GROUP LIMITED 

('ORCHID DEVELOPMENTS' OR THE 'COMPANY')

Placing of new Ordinary Shares of €0.01 each (the 'Placing Shares') with institutional and other investors (the 'Placing')

Orchid Developments, the AIM-traded property developer in Bulgaria, is pleased to announce a placing of ordinary shares by Shore Capital Stockbrokers Limited, raising approximately £5 million before expenses. The Placing is conditional, amongst other things, on the admission of the Placing Shares to trading on AIM.

Under the Placing, 12,500,000 Placing Shares have been placed at 40 pence per share (being a 11.1 per cent discount to the closing mid-market price on 24 August 2009) with institutional and other investors. The net proceeds of the Placing will be used to strengthen the Company's balance sheet. 

The Placing Shares will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions hereafter declared, made or paid. 

Application has been made for the Placing Shares to be admitted to trading on AIM. It is expected that dealings in the Placing Shares will commence on AIM on 28 August 2009. The Placing Shares will represent approximately 14.1 per cent of the issued share capital of the Company as enlarged by the Placing. 

For further information, please contact: