IRF European Finance Investments Ltd

('IRF' or the 'Company')

Three Months 2010 Results

IRF European Finance Investments Ltd announces its financial results for the three months ended 31 March 2010. 

Financial Highlights

Share Premium Reduction and Related Payment to Shareholders

At a special general meeting of the Company held on 19 April 2010, shareholder approval was given for the reduction of part of the Company's share premium.  At the time of the capital reduction, notwithstanding the Company having sufficient cash reserves to distribute funds to its shareholders, Bermuda law restricted the Company from declaring a dividend.  The Company's board of directors determined that it would be in the best interests of its shareholders to propose a reduction of the Company's share premium account and to make a payment to its shareholders in connection therewith.

In line with the resolution, IRF's share premium account was reduced on 22 April 2010 from US$495.4 million to US$457.9 million, enabling an amount of US$0.30 per common share to be paid to holders of the Company's common shares on record on 6 April 2010.  Payment was effected on 6 May 2010.

Loan Maturity Extended to 2015

In the beginning of the second quarter 2010, IRF restructured its outstanding loan with Investment Bank of Greece.  Under the terms of the agreement, IRF repaid €40.0 million of the loan and extended the maturity date of the remaining balance of approx. €160.0 million to 2015.

Net Asset Value

IRF determined that its shares had a net asset value ('NAV') of US$1.28 per share as at 31 March 2010.   The equity holdings portfolio of IRF is marked to market on the balance sheet as at 31 March 2010.   As of this date, the total assets of the Company, including the cash balance of €76.2 million, was €317.2 million.  The total liabilities were €198.7 million.  Consequently, the equity value was €118.4 million.  The Euro/$ exchange rate of $1.3479 on 31 March 2010 was used to compute the NAV.   As of 31 March 2010, IRF had 124.8 million common shares outstanding.

IRF intends to determine and publish NAV on a periodic basis. This estimated NAV is provided for information purposes only and should not be relied upon for investment decisions.

For further information:

IRF European Finance Investments Ltd

Angeliki Frangou, Chairperson                                 Tel: +30 (0) 210 428 0560

Sheldon Goldman, Deputy Chairman                        Tel: +1 212 404 5740

About IRF

IRF's principal investment strategy is to seek investment opportunities in global financial institutions, with a complementary focus on investments in distressed opportunities in other industries.  The Company was initially listed on AIM until 19 January 2009 when it transferred to the SFM (Specialist Fund Market), both markets operated by the London Stock Exchange plc.  The Company's registered office is at Canon's Court 22 Victoria Street, Hamilton HM12, Bermuda.

Forward-looking statements

All statements, other than statements of historical fact, included in this release are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements.  IRF assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.