City Service AB - Notification on material event

On plans of City Service Group for 2008

City Service Group, the leader of facility management market in the Baltic
States, plans to reach consolidated turnover of LTL 245 million (EUR 71
million) in 2008. According to the plans, the Group's consolidated EBITDA shall
amount to LTL 18.5 million (EUR 5.4 million) and consolidated profit shall
amount to LTL 14 million (EUR 4.1 million) in 2008. Compared with the year 2007
results, consolidated turnover of the group shall increase by 17 percent, net
profit - by 25 percent. 

„This prognosis does not include possible acquisitions of companies which are
in progress at the moment. The turnover for 2008 should reach LTL 262 million
(EUR 76 million) after finalizing acquisition procedures. The prognosis shall
be updated afterwards“, - stated Žilvinas Lapinskas, Director General of City
Service, AB. 

The planned turnover of City Service Group includes LTL 117 million (EUR 34
million) from facility management projects in Lithuania, LTL 62 million (EUR 18
million) from management of heating facilities renovation projects in
Lithuania, LTL 63 million (EUR 18.3 million) from subsidiaries in Russia, and
LTL 3 million (EUR 0.9 million) from subsidiary in Latvia. 

City Service Group now consists of 22 facilities management companies operating
in Lithuania, Russia, Latvia and Ukraine. The Group serves 11 million square
meters of facilities. 

Vilius Mackonis,
Public relations manager
+370 655 511 01