THE BLACK SEA PROPERTY FUND LIMITED

For immediate release
19 September 2007

Notice of extraordinary general meeting requisitioned on behalf of QVT Fund LP

Introduction

On 31 August 2007 the Board announced that it had received notice from Vidacos Nominees Limited, on behalf of QVT Fund LP, on 29 August 2007, requisitioning an extraordinary general meeting of the Fund to consider ordinary resolutions for the removal of Melville Trimble and Roger Maddock from the Board and for the appointment of John Chapman, Angelo Moskov, Andrey Kruglykhin and Anthony Gardner-Hillman as directors of the Fund. This Fund has published today a circular convening that extraordinary general meeting. That circular summarises the key points which the existing Directors believe Shareholders should consider when deciding how they should vote on the QVT Resolutions and includes the unanimous recommendation of the existing Directors that Shareholders vote against the QVT Resolutions.

Key Considerations for Shareholders

When deciding how they should vote on the QVT Resolutions, the existing Directors believe that Shareholders should consider the following points:


A further circular providing an up-date on the progress of the strategic review will be sent to Shareholders in advance of the EGM. In the meantime, the Board is recommending Shareholders to vote against the QVT Resolutions so as to ensure that the Fund continues to have a Board that will act in the best interests of Shareholders as a whole and that the existing Board, on behalf of all Shareholders, has the opportunity to properly review the full range of options for the future of the Fund.

Extraordinary General Meeting

The Extraordinary General Meeting has been convened for 3.00 p.m. on Monday, 29 October 2007 and will be held at BNP House, Anley Street, St. Helier, Jersey. All Shareholders are entitled to vote on the QVT Resolutions to be proposed at the EGM, all of which will be proposed as ordinary resolutions.

Recommendation

The existing Board, which has so been advised by Intelli Corporate Finance, considers that the QVT Resolutions are not in the best interests of Shareholders as a whole. Accordingly, the Board is unanimously recommending all Shareholders to vote against the QVT Resolutions.

Enquiries

Sue Inglis/Chris Whittingslow Intelli Corporate Finance Limited (Financial adviser) T: 020 7653 6300
Charles Farquhar/ Nick Westlake Numis Securities Ltd (NOMAD and Broker) T: 020 7260 1000
 

Notes

Intelli Corporate Finance, which is authorised and regulated in the United Kingdom for the conduct of investment business by the Financial Services Authority, is acting solely for The Black Sea Property Fund Limited and for no one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than The Black Sea Property Fund Limited for providing the protections afforded to clients of Intelli Corporate Finance or for affording advice in relation to the matters referred to in this announcement.

Definitions

The following definitions apply throughout this announcement unless the context otherwise requires:

"Board" or "Directors" the directors of the Fund
"EGM" or "Extraordinary General Meeting" the extraordinary general meeting of the Fund to be held on Monday, 29 October 2007 at 3.00 p.m. at BNP House, Anley Street, St. Helier, Jersey, Channel Islands, (or any adjournment thereof)
"Fund" or "Company" The Black Sea Property Fund Limited
"Intelli Corporate Finance" Intelli Corporate Finance Limited
"QVT" QVT Fund LP
"QVT-nominated Directors" John Chapman, Anthony Gardner-Hillman, Andrey Kruglykhin and Angelo Moskov
"QVT Requisition" the requisition served by Vidacos Nominees Limited, on behalf of QVT, that requisitions, pursuant to article 80 of the Companies (Jersey) Law, 1991 and in accordance with article 26.01 of the articles of association of the Fund, an extraordinary general meeting of the Fund to be convened to consider the resolutions referred to under the heading "Introduction" in this announcement
"QVT Resolutions" the resolutions proposed by Vidacos Nominees Limited, on behalf of QVT, and set out in the QVT Requisition
"Shareholders" holders of Shares
Shares" ordinary shares of no par value in the capital of the Fund