Released on = July 18, 2007, 6:21 pm

Press Release Author = Propertastic!

Industry = Real Estate

Press Release Summary = Propertastic! (www.propertastic.com), a new website which
claims to be the leading independent source of information for buyers of property in
Central & Eastern Europe plus the developing Mediterranean area, today announced
that it is downgrading its rating of property in the three Baltic States (Estonia,
Latvia and Lithuania) from 'hold' to 'sell' in light of gloomy analysis of the
country's economic prospects plus recent developments on the local property markets.


Press Release Body = Propertastic! (www.propertastic.com), a new website which
claims to be the leading independent source of information for buyers of property in
Central & Eastern Europe plus the developing Mediterranean area, today announced
that it is downgrading its rating of property in the three Baltic States (Estonia,
Latvia and Lithuania) from 'hold' to 'sell' in light of gloomy analysis of the
country's economic prospects plus recent developments on the local property markets.

The three 'Baltic Tigers' have seen Europe's largest gains in house prices over the
past few years. Latvia was the #1 territory for 2006, with prices increasing by an
average of 61.2%. Estonia was the champion for 2005 and again saw impressive rises
of 24.5% in 2006. Lithuania was never far behind its two neighbours with a rise of
21.7% in 2006 and Knight Frank forecasting that it would see the fastest growing
territory in Europe for 2007 with a predicted growth of 20%.

However, with property prices in the country's capital cities now at a level equal
to or higher than more established Scandinavian capitals such as Helsinki, Stockholm
and Copenhagen and rental yields among the lowest in Europe, many observers have
been claiming that prices are now over-inflated and that, sooner or later, the
'property bubble' would soon be ready to burst.

On a wider level, economic analysts have been getting increasingly nervous about the
precarious nature of the countries' economies due to a combination of factors
including high inflation rates, excessive consumer spending plus high levels of
emigration, a situation which led ratings agency, Standard & Poor to downgrade the
ratings for all three territories. Some analysts are predicting an 'economic
meltdown' in the same style as the South-East Asian Crisis in the late Nineties, or
2003's run on the peso in Argentina.

Propertastic! Chief, Nick Pendrell, comments, "in the past weeks we have been
receiving reports from all three markets that property prices have already peaked
and are now starting to decline."

"In Estonia, many speculators who bought off-plan properties hoping to flip them for
a profit on the secondary market now have to sell them below cost in order to move
them. Some buyers are even prepared to lose their deposits in order to break their
contracts."

"In Latvia, which is the country worrying analysts the most, real estate
transactions are down over 15% in June and prices have fallen 3-5% over the past few
weeks."

"The real estate market in Lithuania is currently relatively stable but, so closely
are the three Baltic States linked economically, that we believe that prices will
start falling over the coming months."

"In summary, we are advising that now is not the time to buy property in the Baltic
States. We believe that there are significantly better returns to be made from
property elsewhere in Eastern Europe and the developing Mediterranean currently -
we're particularly bullish about Egyptian resorts, Montenegro, Bratislava and Sofia
at this moment."

About Propertastic! (www.propertastic.com)

Propertastic! is a new online resource that was established as a 'one-stop resource'
for anyone considering purchasing residential property in Central & Eastern Europe
and the developing Mediterranean region. Presented in a lively and easy-to-read
style, the website offers totally unbiased and independent research on the real
estate markets in Bulgaria, Croatia, Czech Republic, Egypt, Estonia, Hungary,
Latvia, Lithuania, Montenegro, Morocco, Poland, Romania, Serbia, Slovakia, Slovenia
and Turkey.


Web Site = http://www.propertastic.com

Contact Details = Propertastic!
Farnborough House, Alveston, Stratford-upon-Avon, Warwickshire, CV37 7QZ, United
Kingdom
Contact: Nick Pendrell
nick[at]propertastic[dot]com
Tel. +371-2881-8007
http://www.propertastic.com