To focus on enhancing returns in the Buy & Rebuild sector

Saint Petersburg, Russia, Dec 22, 2005 -- Eurasian Private Equity Group Ltd., the Saint Petersburg-based alternative investments company, has announced the hiring

of Andrei Kozlov as Manager of the Small Properties Division. Kozlov will be relocating to Saint Petersburg from Izhevsk in early 2006 to take up his duties. Kozlov comes to EPEG from Axion Holding Company where he headed the company’s export division. Prior to Axion, Kozlov was the director of real estate company SpetzService. Managing Director of EPEG, Jeffrey Letino stated, “Andrei brings strong experience in property renovation and administration and we are very lucky to have brought him aboard. He is a strong leader and has produced positive results wherever he has been. With Andrei’s hiring, we expect to unveil several new projects in the near term.”

EPEG currently focuses on investments backed by private capital in the Leningrad region. It soon hopes to announce the licensing of an EU-regulated fund which will pursue acquisitions of un-restructured former-Soviet enterprises, operating high-growth companies in the service sector and properties for development. The EPEG Small Company Buyout Fund will be invested using the same investment strategy as EPEG’s current investments and will be managed by its Board of Directors, Dr. Igor V. Kostikov, Jeffrey Letino and Harris Stavrinides. Dr. Kostikov, the former Russian cabinet minister and head of Russia’s financial markets from 2000-2004, will serve as the Chairman of the Board of Directors and Fund Investment Director. Dr. Kostikov is the founder of one of Russia’s leading brokerages, AVK Saint Petersburg though he no longer retains an interest. He has a long history of high profile private equity investments in Russia including projects with the World Bank, International Finance Corp, and European Bank for Reconstruction and Development among others. EPEG announced its intention to create a Western investment-targeted investment fund in June

With a concentration in small company buyouts, privatizations and real estate acquisition and management, EPEG combines Western management techniques with highly localized knowledge to create value. EPEG originates, structures and conducts buyouts of under-performing companies with significant real estate assets which lack either the management or funding to leverage their market opportunities. News and other information about EPEG is available at http://www.eurasianequity.com