New Europe Property Investments plc

(Incorporated and registered in the Isle of Man with registered number 001211V)

(Registered as an external company with limited liability under the laws of South Africa, registration number 2009/000025/10)

AIM share code: NEPI

JSE share code: NEP

ISIN:   IM00B23XCH02

("NEPI" or "the Company")

FURTHER CAUTIONARY ANNOUNCEMENT AND UPDATE ON THE PROPOSED RIGHTS OFFER

Shareholders are referred to the cautionary announcement dated 21 September 2010 and are advised that for purposes of compliance with the Listings Requirements of the JSE Limited, negotiations in relation to the potential acquisitions are still in progress which, if successfully concluded, may have a material effect on the price of NEPI's shares.

Although no certainty can be given that these negotiations will be concluded successfully, the Company has made significant progress in the negotiations to date.

Accordingly, shareholders are advised to continue exercising caution when dealing in their NEPI shares until a further announcement is made in this respect.

Further details of the proposed rights offer to raise approximately EUR40 million will be published in due course.

3 November 2010

For further information please contact: