First Reit

Bowsprit Capital Corporation Limited, as manager of First Real Estate Investment Trust (“First REIT”, and as manager of First REIT, the “Manager”), wishes to refer to the 2010 Second Quarter Unaudited Financial Statements & Distribution Announcement of First REIT dated 26 July 2010 stating, among other things, that First REIT has been actively considering acquisition opportunities that are available through its sponsor, PT. Lippo Karawaci Tbk (the “Sponsor”), which has a robust pipeline of healthcare assets in Indonesia.

The Manager wishes to announce that it is currently in discussions with the Sponsor in relation to the acquisition of two healthcare properties located in Indonesia, being Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang. It is intended that these properties be leased by First REIT to the Sponsor under long term master lease agreements. The terms of the above transactions are currently being negotiated and the transactions would be subject to, among other things, the valuations of the properties, the approval of the relevant regulators, the Audit Committee of the Manager and unitholders of First REIT (“Unitholders”). The Manager is in the midst of evaluating various sources of funding to finance the acquisitions, but would like to state that no firm decision has been taken to proceed with any specific means of funding. The Manager will, in compliance with its obligations under Listing Manual (the Listing Manual”) of Singapore Exchange Securities Trading Limited (the “SGX-ST”), make the relevant announcements on SGXNET once a firm decision has been made on matters which require disclosure pursuant to the Listing Manual.

In the meantime, Unitholders are advised to refrain from taking any action in respect of their units in First REIT (“Units”) which may be prejudicial to their interests, and to exercise caution when dealing with Units.