OTM Ottoman

RNS Number:0918G
Ottoman Fund Limited (The)
12 July 2006


For Immediate Release                                            12 July 2006



                            The Ottoman Fund Limited


                           Valuation as at 31 May 2006


The Board of The Ottoman Fund Limited (the "Fund") is pleased to announce the
Fund's second quarterly valuation for the period ending 31 May 2006. The Fund
specialises in providing financing to developers of local housing and holiday
homes in the major cities and coastal resorts of Turkey,


The Fund is managed by Development Capital Management (Jersey) Limited.


 *  The net asset value of the Fund is #138,215,946 (92.14p per share)

 *  The net present value of the Fund (excluding the value of the Fund's
    development in Bodrum) is #139,222,740 (92.82p per share)

 *  Indicative net present value of developing the land purchased at Bodrum
    #5.45m (3.64p per share)


Valuation


The project to which Fund has committed financing has been valued by the
property advisor DTZ Pamir & Soyuer in March, at approximately Euro1,100/m2 in
accordance with the Royal Institute of Chartered Surveyors' valuation
methodology on an "as built condition, open market comparative" basis. Taking
this valuation and discounting back the expected cash flows from the project at
11%, together with the land investment valued at cost, produces a net present
value (NPV) for the Fund of #139.2m (before tax), equivalent to 92.82p per
share, as at 31 May 2006.


The NPV for the Fund has been calculated excluding the potential gains from
developing the plot of land recently purchased at Bodrum. Based upon the
Manager's cost and valuation estimates and discounting back at a higher rate of
15% produces a pre-tax net present value for the project of #5.45m or 3.6p per
share. This will be added to future net present value calculations once the
development plans and costs have been finalised.


Investors are no doubt aware of the recent rises in Turkish short term interest
rates. In arriving at a suitable discount rate for the Fund's investments, the
Manager has taken into consideration the fact that the Fund has entered into
fixed contracts denominated in Euros and US Dollars, thereby largely isolating
the Fund from Lira exchange rate risk.


These valuations aim to provide a measure of the progress of the Fund and should
not be construed as a profit forecast.





List of Contacts


Development Capital Management 020 7355 7600

Roger Hornett

Andrew Mitchell


Buchanan Communications 020 7466 5000

Charles Ryland


Numis Securities Ltd 020 7776 1500

Andrew Dawber

Ian McDonald








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