AS Eesti Ehitus Announcement January 4, 2007 Acquisition of shareholding in OÜ Kaurits completed AS ASPI, a wholly owned subsidiary of AS Eesti Ehitus has completed the acquisition of 52% shareholding in OÜ Kaurits. The respective agreement was concluded with the selling shareholders, Mr Peeter Annijerv and Mr Mati Kalme on September 4, 2006 including the requirement to perform thereafter a number of acts and formalities, material provisions being the following. Firstly, the permit of concentration was applied for and granted by the Estonian Competition Board to approve this transaction. Secondly, OÜ Kaurits acquired from Mr Annijerv and Mr Kalme their shareholdings in SIA Abagars, a Latvian entity, the latter acquiring thereafter operations, or assets, rights and obligations of SIA Vides Tikli, a Latvian entity controlled by the third owner of SIA Abagars, Mr Marko Aalberg. As a result, OÜ Kaurits owns 66% shareholding in SIA Abagars while Mr Aalberg owns the remaining 34%. SIA Abagars owns 100% of SIA Vides Tikli. SIA Abagars is today operating in the field of rental of road construction and earthwork machinery and performing small scale environmental construction project. The estimated turnover of the company for 2006 was appr. 55 million kroons (appr. 3.5 million euros), it is operating machinery of 23 different items and it employs 71 persons, including 14 belonging to engineers and technical personnel. Managing director of the company is Mr Aalberg. Thirdly, a supervisory council of OÜ Kaurits was established, consisting of Mr Ain Tromp, member of the supervisory council of AS Eesti Ehitus, Mr Jaano Vink, chairman of the board of AS Eesti Ehitus and Mr Margus Vaim, chairman of the board of AS ASPI. Total transaction value is 41 million kroons (2.62 million euros), which is paid out in full. Minority shareholders in equal parts are Mr Annijerv and Mr Kalme who are also members of the board. The last two audited financial reports of OÜ Kaurits are the following. Income statement 2005 2004 (in kroons) Income Sales 58 742 542 51 116 223 Other operating income 508 228 0 Total income 59 250 770 51 116 223 Operating expenses Cost of sales 24 766 966 26 968 568 Administrative expenses 6 110 602 4 197 428 Labour costs 7 365 451 3 721 059 Depreciation 10 453 401 11 110 836 Other operating expenses 1 108 311 487 Total operating expenses 48 697 528 46 309 378 Operating profit 10 553 242 4 806 845 Financial income 1 505 262 Financial expenses 1 466 501 1 029 407 Income tax 923 446 0 Net profit 8 164 800 3 777 700 Balance sheet Dec 31, 2005 Dec 31, 2004 (in kroons) Assets Current assets Cash and cash equivalents 4 457 112 2 573 283 Trade receivables 10 102 921 5 653 357 Prepayments 369 741 565 120 Total current assets 14 929 774 8 791 760 Fixed assets Machinery and equipment 36 129 832 30 949 257 Land 200 000 200 000 Total fixed assets 36 329 832 31 149 257 Total assets 51 259 606 39 941 017 Liabilities and equity Current liabilities Loans and borrowings 7 722 556 7 128 056 Prepayments 300 000 0 Trade payables 2 903 912 2 788 040 Tax liabilities 736 173 172 018 Payables to employees 578 120 350 600 Unpaid dividends 1 400 000 0 Other payables 886 666 255 872 Total current liabilities 14 527 427 10 694 586 Long-term liabilities Finance lease liabilities 21 128 461 18 807 513 Total long-term liabilities 21 128 461 18 807 513 Equity Share capital 3 000 000 3 000 000 Statutory capital reserve 300 000 300 000 Retained earnings 4 138 918 3 361 218 Profit for the period 8 164 800 3 777 700 Total equity 15 603 718 10 438 918 Total liabilities and equity 51 259 606 39 941 017 Financial results of OÜ Kaurits will be reflected in consolidated accounts of AS Eesti Ehitus starting from January 1, 2007. Jaano Vink AS Eesti Ehitus Tel: +372 6400 450 E-mail: eestiehitus@eestiehitus.ee