Lanitis Development subject of takeover bid

Thalassa Holdings Limited, a newly established company in Malta and reported to be a Deutsche Bank Investment fund, announced its decision to submit a Public Offer for

the acquisition of minimum 90% and up to 100% of Lanitis Development Public Ltd (LDL) issued share capital at EUR2.31/share in cash.

Thalassa Holdings Limited is 100% subsidiary of Aphrodite Holdings Limited, which is also a newly established company in Malta, of which 75% of its share capital is held by RREEF G.O.II –Malta Limited and 25% of its share capital is held by Lanitis E.E. Holdings Limited according to a research note by Sharelink Securities & Financial Services,. RREEF G.O.II – Malta Limited is a subsidiary of RREEF Global Opportunities Fund II, LLC which is an international investment fund engaged in the area of real estate investment while Lanitis E.C. Holdings Limited is a holding company engaging in many productive activities in Cyprus like property development, tourism, shipping etc. According to the announcement, the Public Offer constitutes a part of a joint venture agreement between RREEF Global Opportunities Fund II, LLC and Lanitis E.E. Holdings Limited for cooperation in business projects which involve investments for tourism and residential development in Cyprus and Greece.

It is noted that Lanitis E.C. Holdings Limited and its related parties as well as other major shareholders in LDL with a total of 83.55% of LDL’s issued share capital have agreed to accept the Public Offer. Thalassa Holdings Limited currently holds no stake in LDL. The Public Offer is subject to the approval by the relevant regulatory authorities.

Based on 2006 Book Value of the Company and its most recent closing price the stock currently trades at 2006 PBV of 1.6x.