East Capital Explorer AB: ECEX and East Capital intend to terminate the investment agreement

Regulatory News:

East Capital Explorer ("ECEX”) and East Capital have agreed that the investment agreement should be terminated, whereby ECEX can become a fully independent investment company.

The Board of East Capital Explorer will call an Extraordinary General Meeting to decide on a termination of the agreement. A more detailed proposal will be presented in connection with the EGM notice, including the termination terms. The notice and proposal are expected to be published by the end of February.

The mutual conclusion follows the review of the investment agreement that was initiated by East Capital and commenced during the fall of 2015, as previously announced. Terminating the agreement and building an in-house investment management organization would increase cost efficiency and transparency. A termination, in combination with the ongoing strategic shift towards private equity and real estate primarily in the Baltics, and a continued use of available tools such as share redemptions and buybacks, are altogether believed to create increased shareholder value.

The investment agreement, that was established in 2007 and extends until 2032, describes the conditions that govern the investment activities of East Capital Explorer. The agreement prescribes the division of duties and responsibilities between East Capital and East Capital Explorer as well as the level, timing of and basis for the compensation that East Capital receives for managing East Capital Explorer’s investment portfolio.

About East Capital Explorer

East Capital Explorer AB (publ) is a Swedish investment company, created with the aim of bringing unique investment opportunities in Eastern Europe to a broader investor base. The company makes direct investments into primarily private companies and real estate, but has also invested through East Capital’s alternative investment funds. East Capital Explorer’s main investment theme is domestic growth and the Company targets fast growing sectors such as retail, telecom and real estate. East Capital Explorer is listed on Nasdaq Stockholm, Mid Cap.

Listing: Nasdaq Stockholm, Mid Cap - Ticker: ECEX - ISIN: SE0002158568 -

Reuters: ECEX.ST - Bloomberg: ECEX SS Equity

This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act and demands made in the exchange rules. It was released for publication at 08:00 a.m. CET on 11 February 2016.

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