OREANDA-NEWS. On 18 July 2008 XXI Century, one of Ukraine's leading real estate investment, development and property management companies, announced the release of certain companies from their guarantee obligations under the USUSD 175,000,000 Guaranteed Secured Notes due 2010 (the "2010 Notes") and the USUSD 150,000,000 Guaranteed Secured Notes due 2011 (the "2011 Notes") issued by the Company in May 2007 and May 2008 respectively together with agreements associated therewith.

The release of these companies (each a single purpose company which controls property/properties) from their guarantee obligations is expected to be required to accomplish XXI Century's financing and commercial objectives. These include the possible formation of a joint venture with a major international financial institution who would partner the Company in financing certain retail developments in return for a less than 50 per cent. stake in the relevant projects. Discussions are proceeding, and the Company will disclose all relevant details as soon as the binding agreement for the formation of the joint venture has been signed with any partner. In addition, the Company is also considering the possibility of disposing of certain logistics and other real estate assets. Discussions with potential purchasers are ongoing, and the Company will disclose all relevant details as soon as the binding disposal agreements have been reached.

Under the terms and conditions of the 2010 Notes and the 2011 Notes (together, the "Notes"), XXI Century may, on giving not less than 30 days' notice to BNY Corporate Trustee Services Limited (in its capacity as Trustee of the Notes (the ''Trustee'')) and each holder of the Notes (the "Noteholders") release any Guarantor of the Notes from its obligations thereunder, provided that the Company remains in compliance with certain financial covenants.

The Company has despatched a formal notice to the Trustee and the Noteholders advising them of the release and, in accordance with the terms and conditions of the Notes, has also delivered to the Trustee a certificate from two of its directors certifying compliance with the relevant financial covenants taking into account the release of such Guarantors.

The specific companies involved in these transactions are Kvadrat-Ukraine CJSC ("Kvadrat-Ukraine"), Elite Service LLC, Ozzon-Logistics LLC and Evrogradobud LLC. Each company will be released from its respective obligations as Guarantor under the Notes and the associated Trust Deeds and Surety Agreements on 14 August 2008. Kvadrat-Ukraine will also be released from its obligations under the Pledge Agreement associated with the 2010 Notes on this date. Each of these companies is a wholly owned subsidiary of the XXI Century Group.