City Service AB - Notification on material event

AB City Service reached important agreement in negotiations on acquisition of an enterprise in Poland

Vilnius, Lithuania, 2012-12-06 08:18 CET (GLOBE NEWSWIRE) -- On 4 December,
2012 AB City Service has reached an important agreement in negotiations on
acquisition of an enterprise in Poland, Zespół Zarządców Nieruchomości WAM Sp.
z o.o. (ZZN further on) 100% share stock. 

The Company and the representatives of employees of ZZN have agreed on terms of
social package. This agreement frames preconditions for signing a sale -
purchase agreement with Ministry of Treasury of Poland in a short term. The
Company will take over ZZN after agreement of privatization is signed and
shares are paid. Management of the Company plans to finish the transaction
before the end of 2011. 

Žilvinas Lapinskas, General Director of AB City Service, stated: Entering
market of Poland is the most important step in history of City Service group
since 2006, when we started activities in St.Petersburg, Russia. ZZN is the
largest enterprise acting in the market of residential facility management in
Poland with 8.5 million sq. meters of facilities under management. This
composes only 3.4% market share, that is why we hold this acquisition as a very
important platform for a strategic step into large and prospective market of
facility management services. In Poland, we plan to provide services not only
for residential buildings, but also for commercial, public buildings and
industrial objects. 

As Mr.Lapinskas remarked, by expanding its geography into Central Europe, City
Service group opens new opportunities in the future. 

ZZN manages 8.5 million sq. meters of residential facilities and maintains 22
offices in main towns in Poland. 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. 

Privatization of 100 share stock of ZZN is in progress since June 2012. ZZN
provides residential apartment building management, technical supervision,
cleaning and other utility services, also acts as producer and supplier of heat
in some of the managed buildings. 


         Vilius Mackonis,
         Head of communication
         +370 5 239 4900