City Service AB - Notification on material event

On sale of a company in Russia

On 23 rd of December ОАО «Сити Сервис», part of City Service group in Russia,
has sold ООО «Жилкомсервис г. Ломоносов», a company operating in Lomonosov town
of Leningrad district to a local enterprise, acting in public utilities market. 



The company was sold for RUB 3 million. This transaction is profitable for City
Service group, as the company sold has accumulated loss on resale of utility
services. It is forecasted that the transfer of shares will result in
accounting profit of RUB 35 million. ООО «Жилкомсервис г. Ломоносов» was the
only loss making company within City Service group in Russia. 

Žilvinas Lapinskas, General Director of AB City Service, stated: In this region
of Russia we focus our activities in city of Saint Petersburg. This will allow
us to increase efficiency and pursue even better results from our activities. 

ООО «Жилкомсервис г. Ломоносов» manages 670.000 sq. meters of facilities in
Lomonosov town. City Service group purchased the company in May, 2009, in a
privatization auction. City Service acquired 80% share of authorized capital of
the company, while remaining part is controlled by the city of Saint
Petersburg. 


         Vilius Mackonis,
         Public Relations Officer,
         +370 5 239 4900