Bulgarian Land Development plc ('BLD' or 'the Company'), the AIM listed Bulgarian residential property developer, today announces that it has acquired a 56,093 sq. m regulated site near Borovets, Bulgaria's oldest and most famous winter resort. The purchase price is £3.4m (Euro 5m) together with - payable out of sales proceeds - a further £14 (Euro 20) per sq.m of the total built-up area and 30% of any gross sale proceeds over £27m (Euro 40m) in aggregate. The site has full planning permission for the proposed development.

The plot location offers a unique combination of easy access to Borovets ski runs, Dolna Banya spa facilities and Ibar golf course, is in the vicinity of the planned gondola station, Five Mountains and Samokov golf courses and is close to Samokov town park, stadium and sport facilities and within walking distance of numerous retail outlets and restaurants.

The site has the required infrastructure and is currently occupied by a factory complex. The investment project envisages the construction of a resort complex of villas and apartments with total built-up area in the range of 50,000 sq.m.
BLD believes the project has a projected sales value of more than £35m (Euro 50m).

Construction is expected to take place in phases with the first one due to start in the beginning of 2008 with a 12 month building programme; this will comprise about one-third of the whole scheme. The first phase apartments should be available for the 2009-2010 winter season. Depending upon the rate of sales (due to commence in summer 2007), the rest of the construction will be in one or two phases. Total construction costs are expected to be about £18m (Euro 27m) if the work is carried out in two phases.

Funding of the site purchase will come from BLD's own equity. Construction costs are expected to be funded by bank loans and deposits from pre-sales of apartments.

Christo Iliev, Chief executive of BLD, commented: 'This is our fourth significant purchase since our AIM flotation last March and fits in perfectly with our strategy of having a diversified portfolio. We will now have major
developments in Sofia, the capital city, and in the Black Sea holiday resort areas, as well as in the ski mountains.

'Our development portfolio will now have a completed development value of £163m (Euro235m) and we have now committed 82% of the net proceeds received from our March 2006 IPO.'

BLD is in negotiations regarding additional property acquisitions and further announcements will be made in due course.

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