Dragon Gobbles Up Indochina

Big breaking news in the Vietnam Fund world: Dragon Capital is to take over management of Indochina Capital's equity fund portfolios. This is pending final approval and does not include real estate interests apparently... (Indochina's main ticker is ICVHF)

Indochina's equity performance has been less than stellar and shareholders asked for changes and improvements in management so here is the answer. While it is billed as a Joint Venture, it seems clear who will be steering the ship...

INDOCHINA CAPITAL AND DRAGON CAPITAL SIGN JOINT VENTURE AGREEMENT ...

The Board of ICV announces it has been notified (see appendix attached hereto) that Indochina Capital Advisors (ICA) has signed an agreement with Dragon Capital Management Limited ("DCM"), a subsidiary of Dragon Capital Group Limited ("Dragon Capital") to form a new company to carry out the investment management of ICV. The agreement, which is subject to a number of conditions, is expected to be implemented shortly after the Company's Extraordinary General Meeting planned to take place on 11 May 2009. Further details of the proposed investment management arrangements and reorganisation will be set out in a circular which is expected to be sent to shareholders shortly.

Dragon Capital is the most experienced and one of the most respected investment management companies focused on Vietnam. Established in 1994, Dragon Capital has total group assets under management in excess of US$1bn. It employs more than 100 employees, over half of which are investment professionals.

Miles Morland, the Chairman of the Board, said: "The Board believes that this provides the best possible solution for the management of ICV. Indochina Capital will continue to provide first class finance and operational services while ICV will get the benefit of Dragon Capital's significant all-round investment management expertise. The Board are pleased that ICA and DCM have reached this agreement and believe it will give the fund the benefit of stable and consistent investment management."

For further information please contact:

Indochina Capital Advisors Limited +84 8 3910 1525 Beat Schuerch

Arbuthnot Securities Limited 020 7012 2000 Alastair Moreton Hannah Pearce ......................................

APPENDIX

Notification by Indochina Capital Advisors Limited ("ICA") and Dragon Capital Group Limited ("Dragon Capital") to Indochina Capital Vietnam Holdings Limited ("ICV")

Ho Chi Minh City, 15 April 2009

Dear Miles, Francis, Gordon and Hugues,

We are pleased to notify you that ICA has signed an agreement earlier today with Dragon Capital Management Limited ("DCM"), a subsidiary of Dragon Capital to form a new company ('Newco') to carry out the investment management of ICV. The agreement is subject to a number of conditions (including the signing of an investment management agreement with ICV) which the parties expect to be completed in May 2009, shortly after ICV's Extraordinary General Meeting on 11 May 2009. The parties believe that such an investment management agreement with Newco will be in the best interests of ICV and its shareholders. DCM would assume the responsibility for providing investment management services to ICV while ICA would continue to be in charge of fund accounting, compliance, investor relations and other operational matters. The board of Newco would consist of John Shrimpton and Dominic Scriven of Dragon Capital and Richmond Mayo-Smith and Peter R. Ryder of ICA, with Dr. Marc Faber (Chairman of Indochina Capital Corporation and a director of one of Dragon Capital's funds) as Chairman. There would be an investment committee consisting of Dominic Scriven, John Shrimpton and Le Anh Minh, of Dragon Capital; and Richmond Mayo-Smith and Beat Schuerch of ICA. Le Hoang Anh and Hoang Kien of Dragon Capital will be other key persons providing investment advisory services. The key person responsible for fund accounting, compliance, investor relations and other operational matters will remain Beat Schuerch who has managed ICV's finance & operations, together with an ICA team, since inception in March 2007. CVs of the respective key persons are attached to this letter. Peter R. Ryder, CEO of Indochina Capital Corporation has asked to pass on his views as follows: "Co-operating with Dragon Capital provides an optimal solution for ICV shareholders allowing them to benefit from Dragon Capital's professional and strong investment management team whilst having continued access to the professional administration of ICA. The Joint Venture will create a stable and professional platform which will look to manage ICV's assets and it is the intention to increase the NAV over the next few years as the Vietnamese economy recovers from the current global slowdown, overseeing what will hopefully be a greater increase in NAV than the decline that ICV has experienced since its formation. Equally - if not more - important, this Joint Venture reflects the strong conviction of both Dragon Capital and Indochina Capital, that it is in the best interest of the ICV shareholders and the Vietnam market to see ICV continue to pursue its original mandate to provide long term capital appreciation of the shareholders investment - and to achieve this goal - Dragon Capital and ICA have agreed to join forces for this common cause."

Dominic Scriven OBE, Director of Dragon Capital has also commented: "This proposed joint venture involves two managers recognised in the field of Vietnam investments. Our existing relationship is well established and in good standing allowing for increased opportunity in these interesting times. Together with Indochina we can get to work on maximising the attractive medium term opportunities, that are now apparent, to deliver value to shareholders of ICV."

Yours sincerely,

Beat Schuerch CEO, Indochina Capital Advisors Limited

Dominic Scriven, O.B.E. (Co-founder and Director of Dragon Capital Group)

Dominic Scriven, aged 45, graduated in 1985 from Exeter University with a combined honours degree in law and sociology. Of his 22 years in investment, 20 years have been spent in Asia, principally Hong Kong and Vietnam. He has worked for, among others, M&G Investment Management, Sun Hung Kai and Co (publicly listed in Hong Kong), and Citicorp Investment Bank. Prior to moving to Vietnam, he was actively involved in fund management, corporate finance, and securities trading in many of Asia's developing capital markets. He enrolled at Hanoi University in 1992, following which he co-founded Dragon Capital in 1994. A fluent Vietnamese speaker, he sits on the boards of numerous non-Vietnamese companies, including Dragon Capital, its subsidiaries and funds managed by them, as well as on the boards of a number of Vietnamese companies, including two joint stock banks and six other companies listed on the Vietnam Stock Exchange. He was awarded an O.B.E. (Order of the British Empire) in 2006.

John Shrimpton (Co-founder and Director of Dragon Capital Group and Director of the Investment Manager)

John Shrimpton, aged 47, graduated from Newcastle University in 1984 with an honours degree in law. Of his 23 years in investment and securities, 21 have been spent in Asia, principally Vietnam and Hong Kong. He worked as an investment adviser first in London with the London firm of Bishop Cavanagh, and from 1986, in Asia. From 1988 to 1991, he worked as one of the first institutional salesmen specialising in Asian emerging markets at W.I. Carr (Far East) in Hong Kong. During this period, he advised on investments and traded securities in Thailand, Indonesia, Korea, Taiwan and Sri Lanka. In 1991, he moved to Bangkok, Thailand and joined Dynamic Eastern Finance Thailand, a securities and finance company listed on the Stock Exchange of Thailand, as institutional sales director, where he established that company's international business. In 1994, he returned to Hong Kong where he worked as a Thai specialist institutional salesman at HSBC James Capel Asia. Having co-founded the first in what is now the group of companies headed by Dragon Capital in 1994, he moved to Ho Chi Minh City in November 1996 to work full time with the Dragon Capital group companies. In addition to serving on the boards of funds managed by the Dragon Capital group, and of VietFund Management Company and a number of their investee companies, he has been active in the origination of investment opportunities for investment management clients of the Dragon Capital group companies.

Le Anh Minh (Director of the Investment Manager and Director of Dragon Capital Group)

Le Anh Minh, aged 39, is a Vietnam Fulbright Fellow. He graduated from the Ho Chi Minh City Banking University in 1991 with a BA degree in economics and management and subsequently gained an MBA majoring in corporate finance and international banking at the Wharton School of Business, University of Pennsylvania in May 1998. In 1991, he first started with Peregrine Capital Vietnam Ltd. where he was in charge of corporate finance and financial institutions' investment. During that tenure, he completed the acquisition of a stake in Dai Nam Bank, a private sector bank in Vietnam. He supervised the business development and credit departments as vice president of Dai Nam Bank from 1994 to 1996. After obtaining his MBA, he returned to Vietnam and worked for Coca-Cola Southeast Asia as financial services manager for four years. He joined Dragon Capital in 2002 and is mainly responsible for corporate advisory activities.

Le Hoang Anh, PhD (Head of Research of Dragon Capital Group)

Le Hoang Anh, aged 40, received an MSc in foreign trade from the Budapest University of Economic Sciences in 1994, and a PhD Degree (Cum Laude) in futures trading in 1998. During his time in Hungary he gained work experience in securities, futures and property trading and received the Broker's Certificate from the Budapest Commodity Exchange in 1997. After moving back to Vietnam in 1998, Hoang Anh spent two years with the Department of Planning and Investment of Ho Chi Minh City as a financial expert, before joining Dragon Capital in late 2000 as a senior analyst. He was appointed Head of Research in 2006.

Hoang Kien (Portfolio Manager of Dragon Capital Group)

Hoang Kien, aged 39, graduated with BA Honours in economics from Ho Chi Minh City Economics University in 1992. In 1999, he received his MBA from the Cox School of Business in Dallas, Texas, under the Fulbright Fellowship programme. From 1992 to 1997, he worked in the international contracting operations of PetroVietnam, Vietnam's central oil and gas corporation. He joined Dragon Capital in 2000, with responsibility for portfolio management, and structuring the Company's investments.

Richmond Mayo-Smith (Co-founder and Co-Chairman of Indochina Capital Corporation and Director of the Investment Manager)

Richmond Mayo-Smith, aged 57, received a MBA in International Business from New York University's Stern School of Business in 1986. Prior to forming Indochina Capital, Rick operated a private investment consultancy company with offices in Ho Chi Minh City and Hong Kong. His firm had a ten-year track record of profitable operations where Rick advised clients, invested-in and developed projects valued at over US$100 million in sectors that include tourism, food and beverage, real estate, financial services, building materials and technology. Rick served as Morgan Stanley's advisor in the Indochina region from 1995-1998 and was involved in the sourcing of investment opportunities for two Morgan Stanley funds, the US$1 billion Princes Gate Fund and the US$1.2 billion Morgan Stanley Real Estate Fund. From 1998-1999 Rick and ICL were contracted by Citicorp Capital, the direct investment arm of Citicorp, to source deal flow and conduct due diligence on over 30 investment opportunities in the Indochina region. In addition, Rick was a founding member and first Chairman of the American Chamber of Commerce in Vietnam (1994) and has long been active as a Board member.

Beat Schuerch (CEO of Indochina Capital Advisors Limited)

Beat Schuerch, aged 44, graduated in 1990 with a Masters Degree in economics from the University of St. Gallen, Switzerland. From 1991 to 1996 Beat was with the Energy Management division of Siemens (formerly Landis & Gyr) where he was responsible - among others - for assessing, implementing and monitoring licensing and Joint Venture projects in Asia. From 1996 and 2002 he was a country manager of the DKSH (formerly Diethelm Keller Group) where he was responsible for managing over 450 staff across the company's Vietnamese and Cambodian trading businesses in healthcare, chemicals products, and consumer products. From 2002 to 2004, Beat was the head of Lanamatic Asia in Thailand where he was responsible for assessing and developing the company's Asian business machine component market entry strategy and identifying, evaluating, and selecting the company's Asian distributors and agents. Prior to joining ICA, from 2004 to 2006, Beat was the head of Synovate Thailand Ltd.'s Business Consulting division in Thailand where he was responsible for conducting market research and providing growth strategy consulting to multinationals in the financial services, industrial, automotive, petrochemicals, food and beverages, and logistic sectors in Thailand, Vietnam and the Philippines. Beat joined ICA in 2006 as CFO / COO and played an instrumental part in the IPO of ICV and has recently been promoted to CEO of ICA.

Marc Faber (Chairman of the Investment Committee of the Investment Manager)

A well-known economist, author, and investment advisor, Dr. Faber is most often noted for his "contrarian" investment approach. Dr. Faber is associated with a large number of funds and institutions around the World including the Iconoclastic International Fund, Baring Chrysalis Fund, Overlook Partners' Fund, and the Income Partners' Global Strategy Fund. Dr. Faber publishes a widely read monthly newsletter "The Gloom Boom & Doom Report" and he is the author of several books, including "Tomorrow's Gold" which was a 2002 bestseller.

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This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

SOURCE: Indochina Capital Vietnam Holdings Ltd
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