AIM: OCH

17 February 2012

Orchid Developments Group Ltd

("Orchid" or the "Company")

Update on preliminary approach from third party

Further to the announcement made on 14 February, Orchid, the specialist investor in the Bulgarian real estate and leisure market, confirms that the preliminary discussions with a third party did not lead to an indicative offer for the Company ("Offer") being made and that, therefore, the discussions regarding an Offer have now terminated.