The three Baltic States remain the leaders of the pack with the fastest growing economies of all countries in the EU. GDP growth for 2005 was 9.8% for Estonia, 10.2% for Latvia and slightly lower for Lithuania at 7.5%. The strong growth is supported by increased domestic demand, which is fuelled by rising disposable income and bank lending. Last year bank lending alone increased by 40% in the Baltic States and increased mortgage lending has contributed to growth in the construction and real estate sectors. The economy and corporate earnings are still strong with growth in exports exceeding growth in imports.

However, the Baltic sky is not only sunny. Inflation is now so high in all the Baltic countries that the Euro conversion, which was planned for January 2007, will probably be delayed. Furthermore, after many years of continuously positive development, the stock market has stagnated somewhat this year.

Nonetheless, the East Capital Baltic Fund is only down slightly for the year following outstanding returns of 40% in 2004 and 42% in 2005 (measured in Euro terms). We are still convinced that these countries will continue to be among Europe’s top performers economically and therefore we would like to invite you to take a closer look at these developments by joining us at the third East Capital Summit – Baltic States 2006. This year’s Summit will be held in Riga, the beautiful capital of Latvia.

During three intensive days we will meet the management of several very successful companies that are the strong driving forces behind the positive GDP development, and we will also listen to some of the most renowned experts on this region – Carl Bildt, Anders Åslund and Bengt Dennis. East Capital is one of the largest investors in the Baltic States and our fund managers will also provide insight on the stock market.

We will be staying in the Reval Hotel Latvija, which is in walking distance to the quaint old town of Riga. In addition to many interesting presentations and company visits, we will also enjoy a guided tour of Riga, delicious cuisine from the region and an excursion to the exclusive beach town of Jurmala just outside the city.

Date & Place:
29-31 May 2006 in Riga, Latvia

Participants:
All of East Capital’s clients and partners are welcome to participate, however, please note that spaces are limited and direct clients with East Capital have priority.

Hotel:
We have chosen to host the Summit at Reval Hotel Latvija, which has the most modern state of the art conference facilities in Riga. The rooms are comfortable but if you would like more luxurious accomodation we recommend that you book directly with Hotel Bergs (www.hotelbergs.lv, +371 777 0900) or Reval Hotel Ridzene (www.revalhotels.com, +371 732 4433), which are 5 star hotels within walking distance to Reval Hotel Latvija.

Price:
EUR 590 for the entire Summit with accommodation at Reval Hotel Latvia in a single room (incl. hotel, seminars, meals, company visits, but excl. flights), EUR 500 for accommodation in a shared double room and EUR 385 for the entire Summit without accommodation (incl. seminars, meals, company visits, but excl. hotel and flights).

Flights:
Pre-booked with SAS from Stockholm, Oslo, Helsinki and Copenhagen. Please make your own travel arrangements from all other locations.

Registration:
Please fax or post the attached registration form or click on www.eastcapital.com/summitreg, by 24 April 2006, to register directly on our web page. Within 72 hours we will confirm availability.

Please note that spaces are limited and direct clients with East Capital are prioritized. A detailed program and airline tickets booked through us will be sent to you a couple of weeks prior to the Summit.

Payment:
Your credit card will be charged in May.

Questions:
Please call your client representative at East Capital or Client Services at +46 (0)8 505 885 05.

Final registration date:
24 April 2006 (spaces are limited).