Dear investors

Dear investors,
We would like to welcome you as investors in Alpcot Russian Land Fund AB. We are pleased that Alpcot Russian Land Fund closed on 24 January 2007 with SEK 226 million (approximately USD 32 million) excluding issue costs. This provides us with sufficient financial resources required to initiate the process to acquire and later on cultivate agricultural land primarily in Russia.

We have in February and March started to acquire former collective farms in Volgograd and Voronezh. These former collective farms include vast acreage of land. As soon as we have finalised these acquisitions, we will provide more details. Furthermore, we are evaluating investment opportunities in other Russian regions such as Belgorod, Saratov and Tambov. The price levels for the acquisition targets are generally in line with our initial estimates. Finally, the legal structure is now close to being finalised.

We are optimistic about the future prospects and our main focus at the moment is to acquire arable land before prices rise too much. Our estimate is that prices for arable land will increase in the future and approach the price levels now prevailing in for example Central European countries such as Poland. In addition, our investment case is supported by increasing prices for agricultural commodities, which are also referred to as “soft commodities”. Crops that are most suitable for biofuels, e.g. maize, have seen the steepest price increase. Global trends such as the economic growth in India and China should also lead to increased demand for agricultural commodities in the future.

Alpcot Russian Land Fund has registered Agrokultura as a secondary name. This enables us to operate under the name Agrokultura in Russia among other countries. The name Agrokultura reflects the company’s agricultural activity, which is appreciated in connection with the contacts with local politicians in Russia. We will shortly launch a dedicated website, www.agrokultura.com, for the company. On that site, we are going to present news and other relevant information regarding the company’s activities.

After the closing of the Fund in January 2007, several potential investors have contacted us and have shown interest in either participating in the next round of capital raising or in acquiring existing shares. In our view is Alpcot Russian Land Fund not prepared for a listing on any stock exchange before autumn 2008. However, as soon as we have completed some of the transactions we are currently involved in, we will take an initiative to start unofficial trading in the share in order to reveal the underlying values in the company.
We are looking forward to a very promising future and we hope we can count on your confidence.

April, 2007

Carl Aschan, CEO
Peter Geijerman, Investment Team
Björn Lindström, Investment Team
Katre Saard, Investment Team