EQS Equity Special

    For immediate release:

                       Equity Special Situations Limited                       

                           ('ESS' or the 'Company')                            

                                    UPDATE                                     

Following the announcement of 15 October 2008, ESS today provides the following
update to shareholders.

Following the granting of the interim injunction against Landsbanki as
announced on 10 October 2008, ESS successfully obtained an order continuing the
injunction on 13 October 2008 until trial or further order. On 24 October 2008,
ESS filed its Particulars of Claim in the High Court of Justice, Chancery
Division against Landsbanki and effected service on Landsbanki on that date.
This legal process is ongoing and when further progress is made an update will
be provided to shareholders.

As a consequence of the extreme collapse in the value of securities owned by
ESS during October 2008, following the failure of the Icelandic banks on or
around 7 October 2008, the value of the security provided by ESS to other debt
providers became insufficient to cover the amounts owing to those debt
providers. In addition, the ability of the Company to meet payments falling due
to certain creditors and other debt providers became severely restricted. The
Company is currently in advanced negotiations with the majority of these debt
providers in order to agree an orderly repayment of amounts owing.

Should ESS fail to reach agreement with its creditors and debt providers and/or
fail to raise the necessary funds from the sale of certain assets, it is likely
that the Directors will be forced to take steps to seek formal protection from
the Company's creditors.

Trading in the Company's shares will remain suspended pending clarification of
the status of certain of its investments.

Peter Griffin, director, commented:

"We are continuing to work with our advisors and creditors to try to ensure a
speedy and successful resolution to the extremely difficult and exceptional
issues facing ESS. Whilst there is no certainty as to the outcome at this
stage, we remain hopeful that ESS will get through this situation, but in order
to do so it will require the continued goodwill of our creditors"

Enquiries:

Equity Special Situations Limited

Peter Griffin, Director Tel: +44 (0) 1481 751000

GTH Communications

Toby Hall Tel: +44 (0) 20 7153 8039

Evolution Securities Limited

Jeremy Ellis Tel: +44 (0) 20 7071 4300



END

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