City Service AB - Notification on material event

City Service took over control of Ecoservice group

On 5 January 2010, City Service AB via a 100% owned subsidiary acquired the
title to 100% shareholding interest in Ecoservice UAB, legal entity code
123044722, transferred to it by Bionovus UAB under the Share Purchase Agreement
dated 5 January 2010. The price of the share purchase transaction is LTL 55
million. 

Ecoservice UAB in its turn holds Specialus Autotransportas UAB, legal entity
code 140026178, and Trakų Rajono Komunalinių Įmonių Kombinatas UAB, legal
entity code 181212948, which perform their operations in Vilnius, Klaipėda and
Trakai regions. 

In 2009, EBITDA of Ecoservice group is expected to reach LTL 9.2 million.
Ecoservice AB shares are valued at LTL 56.8 million, according to estimations
made by independent valuator Catella Corporate Finance. 

Decision to acquire Ecoservice UAB was made estimating the expansion potential
this company has and also its plans to develop in St.Petersburg city market. As
stated Mr.Žilvinas Lapinskas, General Manager of City Service AB, this decision
is aimed to increase value of City Service group by integration of Ecoservice
group and by further expansion of Ecoservice group in Lithuania and foreign
markets. 

City Service owns 30 companies operating in Lithuania, Latvia, Russia and the
Ukraine. The total area of facilities managed by the Group constitutes almost
18 mill. sq. m. 

Vilius Mackonis
Public Relations Officer
+370 5 239 4900