Kenmore European Industrial Fund makes strong progress

Kenmore European Industrial Fund announces preliminary results

10 March 2008

Kenmore European Industrial Fund, a Guernsey registered closed-ended investment company, managed by Kenmore, today announces preliminary results for the year ended 31 December 2007.

Highlights:

•   Profit before tax of £11.4 million
•   Adjusted Net Asset Value* per share up 17% to 121.6p from 104.1p at 31 
    December 2006 and up 27% from 95.5p at Admission
•   Portfolio valued at £429 million.  27 assets with a cost of £96 million were
    acquired during the year with a further £22 million of  assets in the pipeline
•   First property disposals completed generating a profit of £0.2 million
•   Interim dividend of 3.0 pence per share paid; additional interim dividend of
    3.0 pence per share declared.  Total dividend of 7.5  pence per share since
    Admission fulfils prospectus commitment

Giles Weaver, Chairman, commented:

“Towards the middle of the year the Board expects there to be opportunities to buy higher yielding secondary properties discounted by the current economic uncertainty and plans for the Fund to take advantage of this.  Strategic realisations in some localities will provide opportunities to reinvest in higher yielding properties in better performing markets and locations.  The Investment Manager’s acquisition team, through its local network of contacts, is ideally placed to identify opportunities as they arise through the year and will continue to focus on buying well located secondary properties which are multi-let and offer stable income.

“The Board believes that the wide spread of the Fund’s activities across Europe means the Company is well placed to capitalise on the opportunities that will develop this year and that the portfolio will continue to see an improvement on its already strong and stable income profile.  This will help defend capital value in what will continue to be challenging market conditions.”

* Adjusted net assets of £170,228,000 (2006 - £145,702,000):  net asset value of £147,752,000 (2006 - £140,409,000) plus deferred tax liabilities of £10,531,000 (2006 - £2,583,000) plus unrecognised deferred tax adjusted for within initial purchase price consideration of £14,080,000 (2006 - £4,845,000) less unrecognised deferred tax contingently adjusted for within initial purchase price consideration £2,135,000 (2006 - £2,135,000)

For further information visit www.kenmoreeifund.com or contact:

Kenmore Financial Services Limited
Rob Brook +44 20 7629 4480

Financial Dynamics
Stephanie Highett/Dido Laurimore +44 20 7831 3113