• Net asset value per share on 31 March 2009 amounted to EUR 7.25 (EUR 10.20) which is a change of -2.2% (-6.2%) during the quarter • For the reporting period 1 January - 31 March 2009, the net loss amounted to EUR -4.1m (EUR -28.2m), including EUR -3.9m (EUR -31.0m) in unrealised change in value of investments. Earnings per share amounted to EUR -0.118 (EUR -0.672) • Cash and deposits on 31 March 2009 amounted to EUR 175.9m (EUR 202.6m), corresponding to EUR 4.92 (EUR 5.59) per share • In March 2009, East Capital Explorer made a commitment to invest EUR 35m in the new East Capital Special Opportunities Fund • During the quarter, the Board utilised the buy-back mandate and repurchased 485,000 shares for a total value of EUR 1.5m. After the close of the quarter, between 1 and 9 April, an additional 286,000 shares were repurchased, bringing the total number of shares repurchased to 771,000 for a total value of EUR 3.3m. These shares were resolved to be cancelled at the AGM on 27 April 2009 • Net asset value per share on 30 April 2009 amounted to EUR 7.62 (SEK 81.23). Cash and deposits per the same date amounted to EUR 174.4m (SEK 1,859.1m) corresponding to EUR 4.91 (SEK 52.34) per share CEO COMMENTS ON THE FIRST QUARTER 2009 started in a fairly bleak mood, as industrial production, trade and the financial markets around the world plunged to new lows. Eastern Europe was equally hard hit and much of the press commentary on our region was overwhelmingly negative. Further into the quarter, however, risk appetite started to return, resulting in a partial recovery of the markets starting in mid-March and continuing throughout April. In particular Russia, the market in our universe with the strongest financial position, has benefited, and has seen its index rally by 80% from its low earlier this year as of this date. Although a great deal has been made of the “green shoots” that have popped up in certain contexts and that the speed of contraction has started to slow, significant uncertainty remains. Certain sectors have benefited from renewed competitiveness: for example, steel producers in Ukraine and Russia are now more competitive due to lower levels of the hryvnia and rouble. Also, the constructive response from the IMF, as well as the decision to beef up its resources as determined at the recent G-20 summit, has contributed to confidence in the fact that Eastern European countries will not be left out in the cold to fend for themselves. Russia has clearly benefited from the strengthening of the oil price. Thus far it appears that the Eastern European currencies that came under pressure and were devalued have stabilised, although further depreciation cannot be ruled out. Many countries with substantial current account imbalances are experiencing a quick re-balancing. So overall, this has meant that the crisis in Eastern Europe has not grown to dramatic proportions. We can however expect further difficulties in many of these countries in terms of growing NPLs in the banking system, restricted access to financing, more companies that need restructuring and growing unemployment. East Capital Explorer's NAV decreased by 2.2% during the first quarter, taking the total NAV decrease since the start of our Company to minus 34%. Our substantial cash position continues to be a valuable buffer. The Russian fashion retailer Melon Fashion Group, which is our first direct investment, continues to perform well. Sales in rouble terms were up 43% (16% in EUR) during first quarter and like-for-like sales grew by 4%. Given that the economy is contracting and many retailers are facing serious difficulties, MFG's solid performance is proof of their strong business model and management. The number of new stores which the management expects to open this year has been sensibly reduced from 100 to 50, which is still an ambitious target in this economic environment. We continue to monitor MFG's journey with excitement. In March, we announced our decision to commit EUR 35m to the East Capital Special Opportunities Fund. No, this is not a distressed fund, as restructuring and turnarounds are not our forte. This fund aims to invest in good companies that find themselves in a special situation, for instance, due to the owners being pressed for cash. With this fund investment we are well positioned to make the most of the special opportunities offered by the current market situation. The fund looks primarily at listed small and mid-caps with a clear exit path within 3-4 years and where the value growth of the company can be positively impacted through more active ownership, for example, board representation. The investment manager has been working diligently on a pipeline of investments and is now ready to start investing. One indication of the extent of change in sentiment in recent weeks is that we now receive questions as to whether we have “missed the bottom”. First of all, let me reiterate that we claim no insight as to timing the bottom. Secondly, the partial recovery which we have witnessed in March, April and May has, thus far, primarily affected the blue-chips, whereas the broader market has not really participated. As regards the private equity and real estate markets, no deals worth mentioning have taken place. Thirdly, we are confident that we have the right tools in place to take advantage of the opportunities when we consider them to be sufficiently attractive. As mentioned earlier, the investment team at the East Capital Special Opportunities Fund is actively studying potential deals. Also, remember that the East Capital Russian Property Fund, to which we committed EUR 40m in June 2008, is still fully in cash, and the deals which the fund evaluates now are becoming more and more attractive. Finally, we still have plenty of uncommitted cash that can be deployed when the time is right. In summary, we remain patient and cautious in making new investments. At the same time, as we consider that the opportunities presented in current markets are becoming more attractive in terms of valuations, it is reasonable to expect that we will act when good deals can be done. Gert Tiivas, CEO The full Interim Report is available in the attached PDF-file and on the website www.eastcapitalexplorer.com. TELEPHONE CONFERENCE The report will be presented and commented at a telephone conference with Gert Tiivas, CEO and Pia Tell Svensson, CFO. Date: Today, Thursday 14 May 2009 Time: 10.00 AM CET Telephone details: +46 (0)8 505 598 53 (Sweden) or +44 (0)203 043 24 36 (UK). Please dial-in a few minutes before the conference starts. A presentation for the telephone conference will be made available on www.eastcapitalexplorer.com before the telephone conference. The telephone conference will be webcasted simultaneously and can be viewed on www.eastcapitalexplorer.com. The webcast will also be recorded and made available on the website after the telephone conference. Contact information: Gert Tiivas, CEO East Capital Explorer +46 8 505 977 30 Louise Hedberg, Head of Communications/IR East Capital Explorer +46 8 505 977 20 Financial reporting calendar - East Capital Explorer: • Monthly Net Asset Value report on the fifth working day after the end of each month • Interim Report 1 January - 30 June 2009 on 20 August 2009 • Interim Report 1 January - 30 September 2009 on 12 November 2009 About East Capital Explorer │ East Capital Explorer AB is a Swedish company, created with the specific aim of bringing unique investment opportunities in Eastern Europe to a broader investor base. The company invests mainly in East Capital's private equity and semi-public equity funds that provide exposure to companies not otherwise accessible via the local stock exchanges in Eastern Europe. East Capital Explorer targets fast growing sectors such as the power utilities, financial, retail and consumer goods and real estate sectors. East Capital Explorer has appointed East Capital to manage its investment activities. Since 9 November 2007, East Capital Explorer is listed on NASDAQ OMX Stockholm, Mid Cap. This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules. It was released for publication at 08:20 a.m. CET on 14 May 2009.