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KALA CAPITAL APPOINTS COLLIERS CRE AND LOCUM CONSULTING TO GEORGIA'S LARGEST REAL ESTATE DEVELOPMENT PROJECT

Tbilisi, Georgia – April 10, 2008 – Kala Capital announced today that it has hired the consortium of Colliers CRE (www.collierscre.com) and Locum Consulting (www.locumconsulting.com) to consult on Arsenal City, the largest real estate development project underway in Georgia.

"A project as outstanding as Arsenal City demands the world's top real estate consultants," said Zurab Nogaideli, Chairman of Kala Capital. "With the team of Colliers CRE and Locum Consulting, I am confident that all of Georgia will be proud of Arsenal City."

The consortium will develop the concept for Arsenal City's master plan, which is to include high-end residential, retail and Class-A commercial space. The first steps to be completed over the next two months include analyzing the Georgian real estate market and preparing international benchmarking and financial reports.

The group has extensive experience working on the development of mixed-use projects. Past developments include Dubrovnik golf resort in Croatia, major mixed-use development in North East Dundalk, Ireland, retail and leisure development in Waterfront Bremen, Germany, South Bank Centre development of art and culture in London and the UK's first large-scale one planet living development in Middlesbrough.

The group also has worked on a significant number of projects in Ukraine and Kazakhstan, and is currently commissioned as lead strategic advisor on a Shimbulak ski resort development in Kazakhstan near Alma-Ata.

About Arsenal City

The largest real estate development project underway in the country of Georgia, Arsenal City will be located on 78 hectares in the center of Tbilisi. Plans call for high-end residential, retail and Class A commercial space. Arsenal City will be home to government offices, five-star hotel and convention facilities, schools, state-of-the-art hospital, cultural and entertainment facilities. The project is expected to create 25,000 new jobs in Georgia and raise the country's GDP by 1 percent.