City Service - Notification on material event

On closing of AWT Holding UAB 25% shares transfer transaction

Vilnius, Lithuania, 2015-02-12 16:00 CET (GLOBE NEWSWIRE) -- On 12 February
2015, AWT Holding UAB 25 % share transfer transaction was closed. The value of
transaction is EUR 3.496 mln. (LTL 12.08 million), according as City Service AB
(hereinafter referred to as the Company) investment into 25 % shares of AWT
Holding UAB was EUR 1.48 mln. (LTL 5.11 mln.). 

The share purchase agreement between the Company and BaltCap investment funds
(BaltCap Private Equity Fund II L.P. and BaltCap Private Equity Fund II SCSp)
was concluded on 23 December 2014. After closing, the sole shareholder of AWT
Holding UAB, which controls Ecoservice group companies, is BaltCap and the
Company has no shares or management rights in waste management companies in
Lithuania. 

The Company reminds that the shares of Ecoservice UAB were transferred to AWT
Holding UAB for EUR 16.4 mln. (LTL 56.6 mln.), including dividends amounting to
EUR 1.5 million (LTL 5.2 million) paid to the Company. From 31 March 2014, the
control and 75 % shares of AWT Holding UAB were owned by BaltCap Private Equity
Fund II, remaining part of the shares was owned by the Company. Accordingly,
since 31 March 2014, the Company was not involved in waste management
activities and thus fulfilled requirements of Civil code of Republic of
Lithuania, according to which companies acting as residential facility managers
cannot be related to waste management companies. 


         Vilius Mackonis,
         Director of Marketing and Communication Department
         +370 5 239 4900