City Service AB - Notification on material event

On acquisition of Būsto Administravimo Agentūra UAB shares

On July 27 City Service, AB has acquired 5,676 (49.92 %) shares of Būsto
Administravimo Agentūra, UAB. The shares were acquired after receipt of
authorization from the Competition Council of the Republic of Lithuania under
the share purchase agreement. The price of the share purchase transaction is
LTL 689,500. 

Currently City Service, AB owns 87.12 % of Būsto Administravimo Agentūra, UAB
shares. The Company has acquired 37.2% of Būsto Administravimo Agentūra, UAB
shares under the exchange agreement dated 7 November 2005. The rest part of
Būsto Administravimo Agentūra, UAB shares are intended to be acquired in the
near future. 

Būsto Administravimo Agentūra, UAB manages 220 thousand sq. m. of apartment
buildings in Kaunas city (Lithuania). 


         Vilius Mackonis,
         Public relations officer
         + 370 5 239 4900