KYIV - Salans has advised Dragon Capital on the establishment of the Europe Virgin Fund. The Fund will invest in fast growing companies in a wide range of private sector mid-sized businesses with primary operations in Ukraine, Belarus and Moldova and will acquire majority or significant minority stakes.

The industry focus will be on FMCG, retail, industrial, telecom, media, technology, pharmaceuticals, construction materials and financial services companies.

Dragon Capital has committed to provide strong strategic support in addition to investing a minimum of $20 million to the Fund as one of the Limited Partners. The Europe Virgin Fund's investors include the European Bank for Reconstruction and Development (EBRD), Swiss Investment Fund for Emerging Markets (SIFEM) and several private investors. The target size of the Fund is $200 million for its final closing expected mid 2011.

Salans' lawyers in Kyiv and London provided full legal support to Dragon Capital on this project. Salans' project team was lead by partners: Oleg Batyuk (Kyiv) and Peter Hughes (London).

Alex Munteanu, Managing Director Private Equity at Dragon Capital, said: "We would like to thank the team of the international law firm Salans for their exceptional professional support on this project. Salans team demonstrated in-depth understanding of business processes in Ukraine, exceptional cross-border expertise and commitment."

Oleg Batyuk, Managing Partner of Salans Kyiv office, said: "We are glad to have helped our client with the successful closing of this transaction. We are proud of the client's confidence in our knowledge and expertise, and we look forward to challenging legal assignments in future."

ABOUT EUROPE VIRGIN FUND
The Europe Virgin Fund is a regional private equity fund sponsored by Dragon Capital with a target size of $200 million. The Fund will provide equity financing to up to a dozen of private sector businesses with primary operations in Ukraine, Belarus and Moldova, in particular, in fast-moving consumer goods, retail, industrial, telecom, media, technology, pharmaceuticals, construction materials and financial services sectors.

Having received commitments from the EBRD, the Swiss Investment Fund for Emerging Markets, Dragon Capital and other limited partners, Europe Virgin Fund expects to start investments in 2010.

ABOUT DRAGON CAPITAL
Dragon Capital (www.dragon-capital.com) is Ukraine's leading investment bank offering a comprehensive range of services in equities and fixed income sales, trading and research, investment banking, private equity and asset management to institutional, corporate and private clients. Established in 2000, the company is an independent partnership controlled by management, with a minority stake held by Goldman Sachs. Dragon Capital accounts for the largest share of turnover on the Ukrainian stock market carrying out approximately a third of reported transactions. The bank has completed more than 50 deals, including IPOs, private placements and M&A transactions, since 2005, raising about $2.0 bn. Dragon's asset management arm has approximately $0.6 bn under management.

ABOUT SALANS KYIV OFFICE
The Kyiv office of the international law firm Salans has 35 lawyers, assisting domestic and cross-border clients with their corporate, M&A, banking, IP, tax and competition needs across a range of sectors including financial services, real estate, energy and natural resources, FMCG, retail and luxury goods, high technology and telecommunications, as well as capital markets. Salans Kyiv office was opened in 1992. Salans Kyiv is highly ranked by the leading international legal directory Chambers Europe 2010 in the following practice areas: Banking and Finance, Corporate/Commercial, Employment, Real Estate, Restructuring/Insolvency.

NOTE: Salans is a member of the U.S.-Ukraine Business Council (USUBC), Wash, D.C., www.usubc.org.