City Service AB - Notification on material event

On the financial forecast of newly acquired companies in St. Petersburg

Due to takeover of 6 companies in St. Petersburg (Russian Federation) total
consolidated revenue of City Service group will grow by more than LTL 320
million (EUR 92.7 million) for a period of 12 months. In 2009 Group's revenue
from these companies will exceed LTL 180 million (EUR 52.1 million). 

On May 20th, 2009 City Service has signed a deed of conveyance and acceptance
of ownership with representatives of executive body of St. Petersburg. Under
this deed the Company has purchases 80% share of authorized capital in 6
facilities management companies of St. Petersburg. The agreement provides that
accounts shall be settled until September 1, 2009. 

After takeover of newly acquired companies City Service group manages
approximately 12% of St. Petersburg's multi-dwelling apartment buildings. 

Vilius Mackonis,
Public Relations Officer,
+370 5 239 49 00