Global City Holdings
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29

Aug

Closing of the transaction – fulfillment of conditions precedent to the sale of shares in Rilon Bulgaria Jsc (the Bulgarian Mall of Plovdiv) to GE Real Estate and Quinlan Private

With reference to the current report No. 24/2007 dated June 30, 2007 the Board of Managing Directors of Cinema City International N.V. with its corporate seat in Amsterdam, the Netherlands (the "Company") informs that all the conditions precedents to the sale of 50% of its shares held in Rilon Bulgaria Jsc were fulfilled and therefore, the closing and settlement of this transaction, i.e., transfer of the shares in Rilon Bulgaria Jsc to GE Real Estate Central and Eastern Europe and Irish - Quinlan Private on one hand and payment of the share price to the Company through its wholly-owned subsidiary - IT Sofia B.V in the amount of EUR 8,280 thousand on the other hand, took place on 28 August 2007.

Before this transaction the Company, through IT Sofia B.V., held 30% of the share capital in Rilon Bulgaria Jsc – a Bulgarian company that owns the land in Plovdiv, one of the largest secondary cities in Bulgaria, and is developing the Mall of Plovdiv project, i.e., the construction of a modern shopping and entertainment center in Plovdiv.

Following the closing of this transaction, the Company through its subsidiary IT Sofia B.V. owns 15% of the share capital of Rilon Bulgaria Jsc and together with Ocif Developemt Ltd. is responsible for completion of the Mall of Plovdiv project.

Legal grounds: Art. 56.1.1 of the Act of 29 July 2005 on the public offering, conditions governing the introduction of financial instruments to organised trading system and on public companies.

A signature of persons authorised to represent the Company: Mr. Israel Greidinger – a Managing Director, proxy