City Service AB - Notification on material event

AB City Service has acquired an enterprise in Poland

Vilnius, Lithuania, 2012-12-18 08:00 CET (GLOBE NEWSWIRE) -- On 17 December,
2012 AB City Service has signed an agreement with Ministry of Treasury of
Poland, fully paid and gained title of ownership to Zespół Zarządców
Nieruchomości WAM Sp. z o.o. (ZZN further on) 100% share stock. The value of
the transaction was PLN 45 million, including related taxes. 

According to unaudited results for 10 months of 2012 for ZZN, revenues were PLN
80.6 million, net profit reached PLN 2.6 million. Total assets of ZZN as of
October 31, 2012 were PLN 88.6 million, including cash at bank balance of PLN
20.5 million, shareholders' equity was PLN 80.6 million. ZZN had no interest
bearing debt. 

ZZN provides residential apartment building management services, also acts as
producer and supplier of heat in Poland. ZZN manages 8.5 million sq. meters of
residential facilities and has 22 offices in main towns in Poland, with 900
employees. The enterprise holds 3.4% share of Poland's residential facility
management market and provides services to approximately 4000 commonwealths of
residential apartment houses. In Poland there are approximately 146.000
commonwealths with 250 million sq. m. of residential housing area in their
possession. There are also approximately 3700 cooperatives of residents with
150 million sq. meters of housing area in their possession. 

Žilvinas Lapinskas, General Director of AB City Service, reminded that this
acquisition for City Service group is a very important platform for a strategic
step into large and prospective market of facility management services. In
Poland, City Service plans to provide services not only for residential
buildings, but also for commercial, public buildings and industrial objects. 

City Service controls the largest group of integrated utility service companies
in Central and Eastern Europe. The Group acts in Lithuania, Latvia, Russia and
Poland.  Area of facilities under management by the Group amounts to 24.7
million sq. meters. 


         Vilius Mackonis,
         Head of communication
         +370 5 239 4900