JUNE 2009 LETTER TO SHAREHOLDERS

Colony Capital’s confi rmed interest in participating in the future of Orco Property Group, and the strengthening of “the Board of Directors both guarantee success in the Group’s restructuring and in its projects for growth. ”

Dear Shareholders, AGENDA Another important meeting for Orco Property Group awaits you in the near weeks – the Group’s Shareholders General Meeting will be held on Wednesday July 8 at our head offi ce, and I count on The ordinary general meeting will be held your participation either in person or by proxy so that you can express your opinion on the future at the registered offi ce of Orco Property of the Group. Group on July 8, 2009 at 2:00 p.m. As you know, the current crisis has led us to seek a Procédure de Sauvegarde (court protection (opening of the doors as from 12:00 p.m.), from creditors) to safeguard the value of our assets and carry out the fi nancial and operational restructuring needed for the Group. The process is under way and is being actively pursued. We to discuss and to vote on the following are strongly committed, thanks to the confi dence which you have shown in us: the projects already agenda: begun are starting to bear fruit, and I shall be happy to show you the progress made to date at the meeting. 1 Approval of the 2008 statutory Some weeks ago I informed you that the Board of Directors had begun exclusive negotiations with and consolidated annual accounts Colony Capital (already the principal shareholder of Accor, and, in partnership with Arnault group, holding Blue Capital, which in turn has a major stake in Carrefour group). We were then considering 2 Allocation of results a capital increase reserved for ColOG, a company controlled by funds advised by Colony Capital. 3 Granting of discharge to the Board After two months of discussions and reviews, we are delighted to see that Colony Capital has of Directors and to the Auditors reaffi rmed its confi dence and interest in the Group, in the management team and our projects for restructuring and development. Dedicated in preserving all shareholder rights, we have adapted 4 Renewal of Directors’ mandates the terms of our initial agreement. After a negotiation period extending to November 30, 2009, and 5 Appointment of new Directors upon after the approval of an extraordinary shareholders general meeting, ColOG will be allocated share proposition by the Board of Directors warrants. These warrants will allow ColOG to subscribe to an issue of Orco Property Group shares at €7 per share amounting to about €80 million. ColOG’s equity stake in OPG should not exceed 6 Renewal of the mandate of the Auditors 30%. All OPG shareholders will also be offered a share capital increase at €7 per share and with a ratio of one new share for one existing share. The exercise of the ColOG warrants is subject to the success of the bond restructuring undertaken as part of the Procédure de Sauvegarde (court protection from creditors). AN ENLARGED AND Following this transaction, all current and future shareholders in Orco Property Group would enjoy STRENGTHENED BOARD the same subscription conditions for the share issue. OF DIRECTORS TO REPRESENT After the required debt restructuring this transaction will bolster the group’s equity while providing ALL THE SHAREHOLDERS funds for growth and for implementation of its restructuring plan. We are making good progress in all our projects and I take particular pleasure in informing you that • 5 directors representing the Board of Directors and I have decided to present for your approval the renewal of the terms of the managers of the Group: offi ce of the directors and the appointment of seven new directors to the board. This stable and Jean-François Ott, Nicolas Tommasini, experienced team will continue the work it has begun, with added support of new expertise and Ales Vobruba, CEREM S.A* of the representatives of minority shareholders, so that all the shareholders in the Group will be and Ott&Co S.A* represented on the Board. I draw your attention to the fact that we are calling in leading experts highly qualifi ed in their sector, • 5 independent** directors: which is of particular interest to the Group. Their presence will be very valuable to us all. Silvano Pedretti, Guy Wallier, Pierre By giving your support to these candidates and to stepping up the strategic restructuring plan that Cornet, Robert Kleiner, Alexis Juan we are rolling out, you will be helping to support the Group’s success during this diffi cult period, • 4 representing shareholders: for the benefi t of each and every one of us. We need your commitment and so we strongly hope Robert Coucke, Geofi n a.s (company that you will participate in this Shareholders’ Meeting. Everything is being done to facilitate your participation, so I count on you to enable us to continue writing the story of Orco Property Group controlled by Martin Burda) and 2 together, and to prepare for its future. directors representing Prosperita * represented by Jean-François Ott ** as per the European Commission Recommendation of 15 February 2005 JEAN-FRANÇOIS OTT Founder and Chairman/CEO LETTER TO SHAREHOLDERS JUNE 2009

ADDITIONAL SKILLS FOR THE BOARD OF DIRECTORS Bernard Kleiner European markets and his experience shopping centre operations will be 59, former chartered accountant. in restructuring. With a doctorate in very valuable to the Board. Proposed as an independent law, he has built his career in the world director. Former managing partner of banking, at the Société Générale Ales Vobruba which he joined in 1968. From 2001 of DKM Salustro Reydel, Bernard will 49, manager of Orco to 2005 he was Chairman and CEO of contribute his front-line experience and Orco . Ales will contribute the Komercni Banka in Prague, one of audit and management and his his expertise in project fi nancing. Ales profound knowledge of the Czech of the principal banks in the Czech network, organising its integration Vobruba joined Orco Property Group market. Perfectly French-Czech in 1995, and is in charge of bank bilingual, he worked with the Ministry into the Société Générale. The Board fi nancing and development strategy. of Finance of the Czecho-Slovak proposes to appoint him to the head of Republic and established the reform the Steering Committee for Financial He is also operations manager for the of the Czech accounting system in and Operational Restructuring. Czech and Slovak offi ces. Previously, 1992-97. With 23 years’ experience as Ales Vobruba worked for PZO Artia, an auditor, he founded an accounting Robert Coucke for the transport and construction company Olomouc and for TAP / ARC and audit consultancy, and in 2001 58, property developer. Proposed (construction and advertising). was appointed External Trade as an independent director. Long- Consultant to the French government. time individual shareholder in Orco In addition, the Czech investment In 2005 he was appointed Director Property Group, Robert Coucke will of Development and International company Prosperita, principal contribute his experience of major shareholder in Orco Property Group Partnerships. His expertise will be of groups and his knowledge of French with 5.02 % of the equity, and Martin great help to the Orco Property Group real estate transactions. His career and the Board of Directors proposes has been entirely in the property Burda, who holds 2.66 %, have to appoint him chairman of the Group sector. After starting at the Fédération accepted the proposal of the Board of Audit Committee. de Promoteurs Constructeurs, he Directors that they should participate successively joined the Pelège Group, in the governance of the company. Alexis Juan Efi dis (Perexia Group - Crédit Foncier Two representatives of Prosperita and 66, banker. Proposed as an de France) and the property subsidiary one for Geofi n a.s (Mr. Burda) will independent director. Alexis Juan will of the Eiffage group. Since 2002 he has join the Board after the Shareholders’ bring the company his considerable been operations manager, a French General Meeting of July 8. Their international experience, his wide property developer. His knowledge names will be announced in the next knowledge of Central & Eastern of accommodation, offi ces and few days.

HOWHOW TTO VOVOTETE AATT A GGENERALENERALL ASAASSEMBLY?SEMMBBLY? ShareholdersSha eho ers wishingwis ing to attendatt nd in personpe so oro to bebe representedrep esen e ata thet e GeneralG n ra MeetingMe ti g shallsh ll notifyno if theirthei intentn en ata thethe latestlat st bby noonno n (1(12:002:0 p.m.)p m.) CETCET ono JulyJ ly 3, 2009,20 9 by sendings nd n anan Attendancettendanc andand ProxyP o y formo m togetheroge e withw h thehe relevantre evan blockingocki g ccertifirtifi cate to the fofollowingow ng peperson:rs n CACEISCAACE S CCorporateorporat TTrustrus 141 ruer e Rougeto g t dee LiLislee FF-- 921892 8 IIssysy leless MoMoulineauxul neaux JulienJ e ManuelM n el - TelT l +333 1 57 787 3434 799 - Faxa 010 499 088 050 8282 orr 011 49 080 050 833 EmailEma : juliu [email protected] ma u @cac s com AttendanceAtt nd nc aandd Proxyroxy form:o m TheT e foformm iss avavailableai b e on tthee CCompany’smpany s wewebsiteb t aat wwww.orcogroup.comw .o c g u c m aandd iss to beb ddulyy ccompletedm le ed anand ssignedgn d by shshareholdersar h d r wwishings n too attendtt n orr too be representedepr s n ed aat ththe GGeneralener MMeeting.e in . Thehe CzechCz ch veversiono oof ththe Attendancett nd n e anandd Proxyr x fformrm is onlyn y formo m informationaln o m t n purposesu p ses andn tthee shareholdersh e o e aree requiredqu ed too delivere e alalwaysa s thee EnEnglishl h version.e si n BlockingB ck ng CeCertifitifi cacate:e: AnyA y documento u e t evidencingv e c g oownershipwn r h off thehe ssharesa es uunderd applicablep c b law.w TThiss documento umen mmustst indicated at ththe sshareholder’sre o e s name,a e theh numbern mbe ofo sharess a e beingb n blocked,o k d thet e datea e startinga n onon whichh h suchu h sharesa s arere blockedblock d andd thee confio rrmationat n thatha ssuchc ssharesa s arer bblockedoc e untiln tthee closel se oof ththee Generale e al MeMeeting.et g TThee blockingo ki g certifier ccatee shallha bbe issuedis ue bby ththe bbank,n tthe professionalo es o a sesecurities’cu t s ddepositaryp s a or thee fi nancialanci institutions u o wherew e thet e sharesh e arear ono deposit.d t.

Orco Property Group, founded in Paris in 1991, has become reserves that will ensure its activity over the coming years. It in less than twenty years a pillar of the real estate and hotel has been listed on Paris since 2000 and is also listed markets in Central Europe, with leadership positions in the on the markets of Prague, Warsaw and . The portfolio residential property markets in numerous countries including of the Orco group is estimated by DTZ (real estate consultants) the Czech Republic, Slovakia, , , , at 2.2bn including subsidiaries. Orco Property Group is also Russia and . sponsor of The Endurance Real Estate Fund, a – The Group holds an over 1,000,000 sqm portfolio of offi ces, regulated closed–end mutual fund organised as an umbrella shops, hotels and logistics sites that have been rented or are fund with sub-funds focused on real estate acquisitions on under development. The Group also holds important property offi ce, retail and residential markets in central Europe.

www.orcogroup.com