City Service AB - Notification on material event

City Service group expands to Spain

Vilnius, Lithuania, 2013-09-26 08:50 CEST (GLOBE NEWSWIRE) -- On September 25,
AB City Service has acquired a company active in Spain, Aldesa Servicios y
Mantenimiento S.A. (enterprise code A-84659614, headquarters registered at
Bahia de Pollensa 13, Madrid), operating under Concentra trade-mark. AB City
service acquired 100% of company shares and as a part of the transaction bought
loans from former shareholders. Total price paid for the loans and shares of
the company amounted to EUR 7,345 million. As of 31 July 2013 company
shareholders‘ equity and loans provided by the former shareholders book value
amounted to EUR 7,5 million (based on unaudited accounts). 

The acquired company provides commercial facility management and related
services. The company holds offices throughout Spain, with over 4.8 million sq.
meters of facilities under its management, with 1600 employees. The company
provides services in Central (Madrid), Southern (Seville), Eastern (Valencia)
and Northern (Barcelona) regions of Spain. 22% of IBEX 35 companies are clients
of Concentra, covering wide scope from telecommunications, office, energy to
logistic sectors. 

Concentra gets into TOP30 facility management companies in Spain. Forecasted
for 2013 revenue is EUR 49 million, and EBIDTA is EUR 1.9 million. 

Facility management market in Spain accounts for EUR 17 billion. It is 5th
largest market in Europe. 

After economic downturn first signs of recovery are distinct in Spain. We think
it is a good time for acquisitions of excellent companies that have survived
economic downturn.  Prices are appealing, as large Spanish holdings withdraw
from facility management which is not their core business, stated Jonas
Janukėnas, General Director of AB City Service. 

In recent years we invested in business management systems, which allowed us to
reach good results and quite a high level in comparison with other companies of
our field not only in Eastern and Central, but also in Western Europe. We feel
ready for broader geographic expansion, as we see perspective both in Spain and
other countries, J.Janukėnas highlighted. 

Company‘s assets and liabilities as of July 31, 2013, according to unaudited
information: 

                                                  (EUR, million)
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Long-term tangible assets                                    0.2
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Accounts receivable                                         15.6
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Other current assets                                         0.5
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Cash                                                         2.4
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Total assets                                                18.7
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Shareholders‘ equity and loans from shareholders             7.5
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Accounts payable and other current liabilities              11.2
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Total shareholders‘ equity and liabilities                  18.7
----------------------------------------------------------------In accordance with Spain government‘s plan for municipalities and autonomic
units liabilities reduction (Plan especial pago a proveedores) accounts
receivable of the company  shall  decrease by EUR 3.2 million by the end of
year. 






         Vilius Mackonis,
         Head of Communication
         +370 5 239 4900