Application to appoint liquidators

    For immediate release: Thursday 11 December 2008

                       Equity Special Situations Limited                       

                           ('ESS' or the 'Company')                            

                      Application to appoint liquidators                       

The Board of the Company regrets to announce that, having carefully considered
the financial position of the Company, it has notified the Guernsey Financial
Services Commission ("GFSC") that it has made an application to the Guernsey
Courts to appoint joint liquidators to the Company.

In its announcement of 7 November 2008, the Board stated that should ESS fail
to raise the necessary funds from the sale of certain assets, it was likely
that the Directors would be forced to take steps to seek formal protection from
the Company's creditors.

Unfortunately, negotiations over the sale of certain assets have not progressed
as expected and, whilst negotiations are still ongoing, the Board believes that
it is now extremely unlikely that sufficient proceeds will be raised from the
sale of assets to meet the Company's debts as they fall due. Certain of the
Company's debts have already fallen due but the Company is unable to pay them.

Having taken advice from its legal advisers and from insolvency practitioners,
the Board feels that it now has no alternative other than to apply to put the
Company into liquidation. Subject to the consent of the GFSC, the application
will be heard by the Guernsey Courts on 18 December 2008.

Trading in the Company's shares will remain suspended and further announcements
will be made in due course.

Peter Griffin, a director of ESS, commented:

"It is with extreme regret that we have had to take this course of action,
which is a direct result of Landsbanki's breach of its long term loan facility
with ESS, including transferring ESS's assets to third parties prior to
Landsbanki's own administration in early October 2008. Up until this point, ESS
had had an enviable track record of producing significant capital growth for
its shareholders over the four years since it joined the AIM Market and was
looking forward to continuing this growth over the coming years."

- Ends -

Further information:

Equity Special Situations Ltd

Peter Griffin [phone]

Evolution Securities Limited

Jeremy Ellis [phone]

GTH Communications

Toby Hall [phone]



END