28 January 2008

Taliesin Property Fund Limited ('Taliesin' or the 'Company')

Additions to Portfolio

Taliesin is pleased to announce the purchase, subject to final notarisation, of

a total of €22,290,000 of Berlin property. These signings include a €6,550,000

portfolio of four primarily residential buildings in Berlin, located in

Friedrichshain, Kreuzberg, Wannsee and Spandau. The seller has provided a rent

guarantee and the portfolio has been extensively refurbished. Based on the rent

guarantee expected yield is 7.2% and there is scope for rent increases through

active asset management. Acquisition cost per square metre of €1,100 equates to

approximately £83 per square foot.

A second portfolio of seven primarily residential buildings has been notarised

for a sum of €13,250,000. The buildings are in excellent locations in Berlin and

have received significant investment over the past couple of years. The slightly

lower initial yield of 6.2% reflects the quality of the locations but average

rents show potential for increases. Per square metre acquisition costs of €1,150

equate to £87 per square foot.

A final portfolio of two buildings in Pankow has been acquired for a sum of

€2,490,000. The buildings are modern apartment blocks containing 30 residential

and 2 commercial units. Current rents are below the levels that are achievable

under the official Berlin rental comparison instrument, known as the

'Mietspiegel', and optimised yields should exceed our target of 7.5%.

The Company's strategy continues to be to buy good quality property at prices

that offer a substantial discount to replacement cost, with scope for

significant rent increases. To optimise the performance of our portfolio,

Taliesin has entered into an exclusive property management agreement with Core

Immobilien Management GmbH ('Core'), a newly created property and asset

management company formed by the founding partner of one of Berlin's largest and

best respected property management companies. Taliesin Management Limited, the

Company's Investment Adviser, controls 20% of Core.

Taliesin has now spent or committed to spend €77,429,000 on property purchases.

Recent purchases and the improved pipeline of property offers mean that the

Company remains confident of achieving the target portfolio size of €300 million

by the end of 2008.

Mark Smith, a Director of the Company commented: 'The Berlin economy and

property markets remain resilient in the face of financial market turbulence. In

particular, the top end residential market appears to be buoyant and is

experiencing a lack of supply. Consequently, we have received a number of

enquiries from property development companies about our undeveloped sites in

Mitte and Potsdam. Sale prices per square metre in these locations are exceeding

Euro 3,000 for new build properties.

The main consequence of the credit crunch in Germany has been to reduce loan

availability for some of the more leveraged participants in the market thereby

improving our property pipeline. We expect to be able to announce further

purchases in the near future. Our local presence and the profile we get from our

AIM listing means that we are still able to finance our purchases. Terms being

offered by our existing lenders are similar to last summer and new lenders are

offering indicative terms superior to those received last year.'

For further information, please contact:

Taliesin Property Fund Limited

Mark Smith, Director 01702 606 993

NCB Stockbrokers Limited

Christopher Caldwell 020 7071 5234