(MET) Metro Baltic Horizons

Metro Baltic Horizons plc (MET.L)

Interim results for the six months ended 30 June 2011

Metro Baltic Horizons plc ("MBH" or the "Company"), the property investment company focused on investments in St Petersburg, Russia and the cities of Riga and Latvia, Estonia announces its unaudited interim results for six months ended 30 June 2011.

Highlights

·    Net asset value per share (NAV) after deferred tax liabilities decreased by 19 % to €0.34 (30 June 2010: €0.42). The Company's valuations remain as those reflected in the Financial Statements to the year ended 31^st December 2010.

·    Total gross property portfolio (including minority interests) valued at €18.1million as at 30 June 2011 (30 June 2010: €38.3 million). The decrease in the gross property portfolio primarily reflects the sale of the Metro Plaza property in Tallinn.

·    At the period end, the Group held a total of €11.1 million of bank and other borrowings, €9.1 million of which was held at the SPV level and as such are non recourse to the Company

·    Some tentative signs of stabilisation in the St Petersburg and Estonian markets which may benefit the remaining two properties but not in the case of the Riga property where the special purpose company holding this investment has now filed for insolvency.

·    Strategic reviews of the remaining two investments are actively underway, including longer term development options. The Company is being advised by recently appointed local property advisers; following the termination of the investment management contract with the former investment manager.

·    The Company intends to commence legal proceedings against various parties including the former directors, professional advisers and investment management team in relation to a material proportion of the losses suffered by the Company.

Ronan Reid, Chairman of MBH, commented:

"The Company has now entered a period of greater stability as the new Board of the Company has stabilised the finances and replaced the advisers to the Company. The investment focus is on the remaining properties and in particular the St Petersburg site. In addition the focus of the Board is to ensure the accountability of any party the actions of whom, whether by negligence or design, occasioned loss for the Company in contractual or other breach of their obligations."

For further information, please contact:

Metro Baltic Horizons plc

Ronan Reid (Chairman)

Tel: +353 1 633 3843

Fairfax I.S. PLC (Nominated Adviser and Broker)

James King/ Gillian McCarthy

Tel: +44 (0) 20 7598 5368

Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2011

Consolidated Statement of Financial Position

As at 30 June 2011

Consolidated Statement of Cash Flows

For the six months ended 30 June 2011

Notes to the consolidated financial statements

For the period ended 30 June 2011

1.         General Information

Metro Baltic Horizon plc (The "Company") is a company incorporated and domiciled in the Isle of Man on 18 September 2006 for the purposes of investing in and developing property in the Baltic States and in the St. Petersburg area of Russia.

The interim report of the Company for the period to 30 June 2010 comprises the Company and its subsidiaries (together referred to as the "Group")

The Company's registered address is IOMA House, Hope Street, Douglas, Isle of Man.

The Company was admitted to the AIM of the London Stock Exchange and commenced operations on the 11 December 2006.

The functional currency of the consolidated financial statements is the Euro and consequently the Company is reporting in Euro.

2.         Basis of preparation

The Interim Financial Statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

The Interim Financial Statements do not include all the information and disclosures required in Annual Financial Statements, and should be read in conjunction with the Group's Annual Financial Statements for the year ended 31 December 2009.

Significant accounting policies

The same accounting policies, presentation and methods of computation are followed in these Condensed Financial Statements as those followed in the preparation of the Group's Annual Financial Statements for the year ended 31 December 2009.

3. Earnings per share

            Basic earnings per share

The calculation of basic earnings per share at 30 June 2011 was based on the profit attributable to shareholders of €990k and a weighted average number of ordinary shares outstanding during the period ended 30 June 2010 of 26,200k.

4. Net Asset Value per share