Foreign investors trust Serbia

(Belgrade, 8th January 2008) MPC Properties and Merrill Lynch have just signed an agreement on a strategic and business partnership whereby Merrill Lynch has become a co-owner of MPC Properties.

This is Merrill Lynch's first investment in the territory of the former Yugoslavia. Furthermore, this transaction represents a principal investment for Merrill Lynch, whereby it is investing funds from its own balance-sheet, to participate in the joint-venture with MPC. This is very representative of the confidence that Merrill Lynch has in MPC Properties, as well as the potential it sees in the Serbian and regional real estate markets. The signing of this agreement, which was the result of many months of negotiations, lays the foundations for creating a strong platform from which to further the partnership's regional expansion.

 "Having acquired such an important strategic partner,  MPC Properties has paved the way for a rapid and very  significant regional expansion, as well as for  obtaining invaluable "know-how" in terms of optimal organization, raising of finance and investments in  general,  as well as sourcing deals and marketing its real estate portfolio" a MPC Properties representative pointed out.

 Mr. Roger Barris, Merrill Lynch's Head of Global Principal Investments for Europe Middle East and Africa, emphasized that this cooperation is in the mutual interest of both companies. "Merrill Lynch was looking for a solid local partner and in MPC Properties we found a company that met or exceeded all of our criteria. By signing this agreement, we have formally initiated the co-operation. We consider this partnership to be important not only for our companies but also for Serbia, and it is a good indicator that foreign investors have confidence investing in the further development of the Serbian market."

 A senior government official noted, "this is possibly the most significant foreign investment into Serbia in recent years, clearly not due to the size of the investment, but rather for the vote of confidence that one of the world's leading financial institutions has in the potential of the Serbian economy and the stability of our business environment".

 MPC Properties, a privately-owned Serbian company involved in the construction of such well-known and successful projects as BC Usce and its future twin tower, Immocentar and the Usce Shopping Center, which will become the largest regional shopping center in Belgrade upon its completion, is a major investor in the real estate market in Serbia.

Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 38 countries and total client assets of approximately US$1.8 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies, with more than US$ 1 trillion in assets under management.