City Service AB - Notification on material event

On the prognosis of financial results for 2011

On 12 April the Board of AB City Service has approved prognosis of financial
results for 2011. In 2011 City Service group plans to increase consolidated
EBITDA to LTL 50 million (EUR 14.5 million), by 40% compared to 2010. As
forecasted, in 2011 consolidated revenue shall mount to LTL 558 million (EUR
161.7 million) and net profit to LTL 27.1 million (EUR 7.8 million) - an
increase accordingly by 3 % and 6.3% compared to 2010. 

According to Mr. Žilvinas Lapinskas, General Manager of AB City Service the
results of the Group will improve due to significant increase of efficiency in
Lithuania and Russia. Grow of revenue will slow down due to disposal of a
company in Lomonosov, Russia in the end of 2010. 

Potential acquisitions in Russia and other countries are not included into
prognosis, Mr. Lapinskas pointed out. He added that negotiations on
acquisitions are always in progress. 

City Service group is the market leader in facility management and integrated
utility services in the Baltic States and one of the largest companies in
Russia's residential building management market. The Group has 20.5 million sq.
meters of facilities under its management. The Group operates in Lithuania,
Latvia, Russia, and Ukraine. 

                                  Sales       EBITDA      EBIT       Net profit 
                                   (mln.       (mln.       (mln.      (mln. LTL)
                                   LTL)        LTL)        LTL)                 
--------------------------------------------------------------------------------
2010                              541.8       35.7        24.7       25.5       
--------------------------------------------------------------------------------
2011 forecast                     558.0       50.0        33.4       27.1       
--------------------------------------------------------------------------------
Comparative Capitalization        0.56        6.3         9.4        11.6       
 ratios (Share price 9,91 LTL)*                                                 
--------------------------------------------------------------------------------

* AB City Service market capitalization as of 12 April 2011 to forecasted for
2011 sales, EBITDA, EBIT and net profit in each column accordingly. 


         Vilius Mackonis
         Public Relations Officer
         +370 5 2394900