Purchase of a 27,5% interest in a plot of land in the city of Stara Zagora, Bulgaria
The Board of Managing Directors of Cinema City International N.V. with its corporate seat in Amsterdam, the Netherlands (the "Company") informs that the Company's wholly owned Dutch subsidiary - IT Sofia BV has entered into a purchase agreement of 27.5% of shares in Grand Galleria OOD, a Bulgarian entity, which owns 9,200 sqm plot in the city of Stara Zagora, Bulgaria. Another 27.5% of shares in the company Grand Galleria shall be purchased by the company Ocif Eastern Europe Ltd. As a result of this transaction both companies: IT Sofia BV and Ocif Eastern Europe Ltd will hold 55% shares in the said plot. The remaining 45% of the plot will be held by the original owners of the plot.
In exchange of the shares in Grand Galleria OOD, IT Sofia BV shall pay a purchase price amounting to 2,700,000 Euros. The Closing of the transaction is subject to the successful fulfillment of certain condition precedents. Furthermore, shareholder's agreement has been concluded regulating the management policies and procedures of Grand Galleria and the relationship among the shareholders in the company Grand Galleria OOD.
Like in the case of the Company's three other real estate investments in Bulgaria - in Ruse (please refer to current report no 26/2007 dated 23 July 2007), in Plovdiv (please refer to current reports: No. 24/2007 dated June 30, 2007 and 13/2006 dated December 22, 2006) and in Sofia (please refer to the Company's prospectus dated 17 November 2006 -Material Contracts — Mall of Sofia Agreements), the Company together with Ocif intends to develop upon the acquired land a 50 000 square meter shopping mall with the modern multiplex theatre located therein.