City Service AB - Notification on material event

On City Service AB transferred activity to the subsidiary

Vilnius, Lithuania, 2012-02-01 16:00 CET (GLOBE NEWSWIRE) -- On 31 January 2012
the first stage of implementation of City Service AB (hereinafter - Company)
Board decision was finished - commercial real estate management and maintenance
activities were transferred to the subsidiary of the Company City Service LT
UAB (code 300883806). 

The activity of the Company was transferred according to the decision of the
Board of the Company, adopted on 29 December 2011, that the Company activity
shall be holding enterprise - public company which controls facility
management, maintenance, waste management companies in Lithuania and in other
countries. Continuing the implementation, on the second stage the subsidiaries
which are registered in Lithuania and manage residential facility in Lithuania
and perform other activities related with the residential facility management
shall be transferred to City Service LT UAB direct control. 

The first stage ended on 31 January 2012 when the Company and 100 percent
controlled subsidiary of the Company City Service LT UAB concluded share
subscription agreement and assets, rights and obligations deed, on the basis of
the above mentioned the Company's commercial real estate management and
maintenance activities (including rights and obligations related to the
mentioned activities) as assets complex was transferred to City Service LT UAB.
Accordingly under share subscription agreement the Company paid up all new
issued City Service LT UAB shares and the Company shall obtain and control 100
percent of City Service LT UAB shares after the registration of the new
emission in the enterprises register. 


         Vilius Mackonis,
         Public relations manager
         +370 5 239 4900