Landic Property resumes control of Keops Development


Landic Property today announces that the company has terminated the contract
between Landic Property and Stones Invest regarding the sale of Keops
Development (KD). Landic Property has resumed effective control of KD and all
of its projects in order to protect financial interests, the value of KD, its
projects and the interests of KD's business partners. 

Landic Property has complied with its entire obligation according to the
purchase agreement. On the other hand, Stones has not as stipulated released
Landic Property from guarantees nor has it honoured a very detailed cash flow
plan securing payments to Keops Development's banks and project partners. 

Today it was revealed that Stones Invest wrongly has taken possession of a VAT
refund which rightly should have been deposited to KD´s account. KD and its
subsidiaries have no boards since the board members appointed by Stones have
resigned which leaves KD in violation of regulations. 

It has become evident that Stones Invest cannot be trusted and that it can not
meet its obligations. To avoid further destruction of value due to Stones
Invest actions, Landic Property has terminated the purchase contract as of
today and subsequently resumes control of Keops Development. 

The management and board of Stones Invest has acted in a gross negligent manner
towards Landic Property, the KD Group and all parties which are stakeholders
therein. Landic Property reserves the rights to proceed with necessary legal
actions against Stones Invest and its board. 

Landic Property will use the next coming days to get a detailed overview of
Keops Development current operations, projects and obligations and will take
the necessary action to ensure that Keops Development operations get back on
track. 

For further information please contact:
Director of Communications Páll Benediktsson
Phone: +354 895 6066
PABE@Landicproperty.com