City Service AB - Notification on material event

On sale of a company in Russia

Vilnius, Lithuania, 2012-08-31 17:00 CEST (GLOBE NEWSWIRE) -- The Board of AB
City Service adopted the decision to sell ООО Жилкомсервис № 2 Невского района,
a company based in Russia, St. Petersburg. The company is sold for RUB 54
million. 

The houses maintained by the company have the worst figures in average age and
area of all St. Petersburg districts where our companies provide services. The
decision was made to sell the company, - commented Žilvinas Lapinskas, General
Director of AB City Service. 

The company now sold was acquired by AB City Service in 2009. The company
manages 1.7 million. sq. m. of apartment building area, its sales amount to LTL
107 million per year. 


         Vilius Mackonis,
         Head of communications
         +370 5 239 4900