Interim report for the nine months to 30 september 1999

Interim report for the nine months to 30 september 1999 - Profit after tax for the 9 months of USDM 2.7 (SEKM 22.0), equivalent to USD 0.28 (SEK 2.27) per share. - Net Asset Value USDM 64.15, equivalent to USD 6.61 (SEK 53.87) per share. -90% of total assets, or USDM 65.47, in Direct Investments. - 61% of Direct Investments in Poland. - A successful offer to acquire the outstanding minority shares in Medicover initiated during the quarter. - In its core market in Poland, Medicover reached an important milestone, by recording a profit in September, as membership continues to grow significantly. - Continued strong performance in the portfolio companies, and especially Brewery Holdings Ltd., which in October recorded a fifth consecutive month as market leader in Romania. The results for the 9 months to 30 September 1999 show a profit after tax of USDM 2.7 (SEKM 22.0). Our Net Asset Value amounted to USD 6.61 (SEK 53.87) per share, up from USD 6.39 (SEK 51.40) at the start of the year. The third quarter recorded an after tax loss of USDM 0.98. The loss was driven primarily by a drop of approximately USDM 0.500 in the value of the remaining Russian listed shares, which we are liquidating as trading conditions allow. Operating expenses for the quarter were in line with budget at USDM 0.59. In line with our policy, we cover existing investments in our 6 and 12 months reporting and in the 3 and 9 month reports we cover new investments, as well as any events of particular importance in existing holdings. During the quarter, we made no investments in new companies. The additional investment of USDM 2.0 in Office Depot, which was also mentioned in the 6 month report, has been finalized and the transaction, through which Office Depot acquired the Office Centre chain from DIVACO of Germany, has received regulatory clearance in Poland. As we communicated to all our shareholders on 15 September, we are increasing our ownership in Medicover, the healthcare company which is our largest investment. During the quarter, we reached an agreement with the largest minority shareholders in Medicover, the British fund manager Taube-Hodson- Stonex Partners (THS Partners), to acquire all of their clients' shares in Medicover. We also extended an offer on the same terms and conditions to all of the other minority shareholders in Medicover. Through the offer, which was completed after the end of the reporting period, ORESA Ventures controls 95%* of the issued shares in Medicover. Payment for the shares will be through new shares to be issued in ORESA Ventures. Through the transaction, valued at USDM 11.75, the number of ORESA Ventures shares outstanding will increase by 2,053,998 shares to a total of 11,753,281 shares. The Net Asset Value will increase to USDM 75.91, equivalent to USD 6.46 per share. We believe the dilution of 2.3% in the Net Asset Value per share resulting from the transaction, is more than compensated by the potential for strong growth in the value of the shares acquired. The rationale for the transaction is the expected strong growth in the market for private healthcare in Poland and throughout the Region and Medicover's unique market position and well established brand name. By acquiring additional shares in Medicover, we are in a better position to control and accommodate a future strategic exit transaction. Through the acquisition, THS-Partners becomes the third largest shareholder in ORESA Ventures, with approximately 10% of the company. THS-Partners is a well-reputed, London-based fund manager with more than GBP 2 billion under management and I would like to welcome them as shareholders in ORESA Ventures. * 91.2% on a fully diluted basis from approved Medicover management option programs. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/11/10/19991110BIT00170/bit0001.doc The full report http://www.bit.se/bitonline/1999/11/10/19991110BIT00170/bit0002.pdf The full report

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