Wednesday, July 05, 2006

Euroweb International Announces Entering a Real Estate Development Project

LOS ANGELES--(BUSINESS WIRE)--July 5, 2006--Euroweb International Corp. ("Euroweb") (Nasdaq Capital:EWEB), announced Friday that through its wholly-owned subsidiary, Euroweb RE Corp. ("ERC"), it has agreed to provide funding to AO Bonanza Las Vegas, Inc. ("AOB") in an amount up to $10,000,000 within its sole discretion - as reported on the Form 8-K Current Report filed with the Securities and Exchange Commission on June 23, 2006.
Yossi Attia, director of the Company and CEO of ERC stated: "To date, ERC has provided partial funding into escrow. The loans are to be secured by property held by AOB located in Las Vegas and have been placed in escrow to be used for the development of the property in Las Vegas. We believe this is a great opportunity for ERC and the Company as upon payment, whether by prepayment or at maturity, AOB shall pay ERC the greater of (i) the principal including 12% interest per annum or (ii) 33% of all gross profits derived from the property that is being developed. In addition, ERC has the right to acquire the property for a purchase price of $15,000,000 through January 1, 2015. This option and its terms will allow ERC to choose the right time to exercise its option, if at all, in order to maximize its profits and optimize shareholders' value."
Moshe Schnapp, President of the Company, stated: "we believe the Company, with the funding of the project commenced by AOB, is entering a new era, which is exciting and appears to be promising."
About Euroweb International Corp.
Euroweb International owns and operates an IT outsourcing company in Hungary through its wholly owned subsidiary, Navigator Informatika Rt. and is currently seeking opportunities in the real estate industry through its wholly-owned subsidiary, Euroweb RE Corp., a Nevada corporation. Euroweb's common stock is traded on the Nasdaq Capital Market under the symbol "EWEB". For more information about the Company go to: www.euroweb-international.com.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this Release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause Euroweb International Corp's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.

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