''Wild Orchid'' Raised Investment From a Large International Investor

Today "Wild Orchid" Group and investment boutique Wermuth Asset
Management, acting as investment adviser to GEF and GEDVF funds, have
announced a deal: GEF and GEDVF have paid US$50 mln for 20% shares of
"Wild Orchid" Group and an option for further increase of stake in the
capital of the group. The group intends to use the proceeds for
financing its medium-term strategic programs: developing existing
network of shops in Russia and Ukraine, international expansion,
further vertical integration of the Group, development of design as
business line, fine-tuning of production cycles and improvement of
logistics chains.

Alexander Fedorov, CEO of the "Wild Orchid" Group, has commented
the deal: "We welcome investment made by Greater Europe Fund and
Greater Europe Deep Value Fund in the capital of the Group. The
investment symbolizes recognition of our achievements and at the same
time demonstrates trust to our development strategy. This partnership
opens good opportunities for razing international financing for the
Group. The deal is part of our overall financial strategy aimed at
preparation of an IPO. As next step of this strategy, we are
considering debt financing in international markets in the form of
CLNs and, possibly, Eurobonds. Tentatively we are planning an IPO in
both domestic and international markets by 2009 and we are intended to
increase the Group turnover to US$350 mln and capitalization to US$600
mln by that time."

Jochen Wermuth, managing partner of Wermuth Asset Management,
said: "This deal fits well into our general investment strategy driven
by both macroeconomic and fundamental analysis. We are big believers
in the Russian 'consumer boom', and we are prepared to invest in
companies -- growth leaders and quality brands. We are contributing
not only our financial capital but our international managerial
capital as well: we are planning to leverage our unique experience of
work with growing companies in order to implement, jointly with the
group management, a large-scale program, designed to increase the
company value and capitalization."

Information on the parties to the deal:

"Wild Orchid" Group is the largest company in Russia, specializing
in retail distribution of underwear, home- and beachwear. Currently
the Group's distribution network includes 187 shops in Russia and
Ukraine. The Group owns the following brands: "Wild Orchid", "VI
Legion", "Bustier" discount shops "Underwear Bazaar". Development
plans for 2007 envisage opening of additional 100 shops.

The Group turnover for 2006 was US$98.6 mln. Turnover plan for
2007 is US$150 mln.

The group sales have been demonstrating annual growth of 50%
during the last three years. On April 16, 2006 the Group has issued
ruble denominated bonds worth RUR1 billion maturing in 1092 days.

Key shareholders of the Group before the deal were its managers:
Alexander Fedorov and Mikhail Shegolovsky.

Wermuth Asset Management GmbH (WAM) - is a German investment
advisory boutique, focused on Russia and other CIS countries. WAM is
headquartered in Frankfurt and has a representative office in Moscow.
WAM adheres to "broad value investing" investment philosophy,
combining fundamental analysis with macroeconomic overlay allowing to
hedge against / benefit from global movements. WAM acts as investment
advisory to "Greater Europe Fund Limited" and "Greater Europe Deep
Value Fund".

Total value of funds, consolidated and available for investment,
as for February 2007 is US$ 1 billion 700 million. Since its
establishment in 1998, GEF Fund (GREEURO JY - Bloomberg) has been
demonstrating average annual return of 36% and was rated the first in
the hedge fund rating according to Sortino Ratio (return to risk
ratio).