City Service AB - Notification on material event

On acquisition of Lazdynų būstas UAB shares

On 4 March 2008 City Service AB and Vilnius city municipality have signed
delivery - acceptance deed of Lazdynų būstas UAB. City Service AB has obtained
the control of Lazdynų būstas UAB 100% share stock on basis of the deed. 

The delivery - acceptance deed is signed on the basis of a peace treaty which
has been concluded between Vilnius municipality and City Service AB. The peace
treaty has been ratified on 15 February 2008 by the decision of Vilnius
district court. Court decision has come into force since 1 March 2008. It is
considered that Lazdynų būstas UAB share purchase - sale agreement is concluded
and came into force the same day, as court decision. 

City Service AB won Lazdynų būstas UAB privatization auction in April 2007,
proposing  LTL 7.551 million for Vilnius municipality owned 100 % share stock.
Legal conflict between two sides had started after Vilnius municipality decided
to discontinue Lazdynų būstas UAB privatization. 

Lazdynų būstas UAB manages 398 970 sq. m. of residential facilities in Vilnius.

City Service Group now consists of 21 facilities management companies operating
in Lithuania, Russia, Latvia and Ukraine. 

The total consolidated City Service Group's revenue for 2007 was LTL 207.7
million (EUR 60.2 million), an increase by 83 % over the total revenue of LTL
113.6 million (EUR 33 million) for the year 2006. EBITDA for 2007 was up by 59%
and amounted to LTL 16.7 million (EUR 4.8 million). In 2006 EBITDA of the Group
amounted to LTL 10.5 million (EUR 3 million). Profit for 2007 amounted to LTL
12.2 million (EUR 3.5 million), an increase by 62% over LTL 7.5 million (EUR
2.2 million) in 2006. 

Vilius Mackonis,
public relations manager
+370 655 511 01