Yesterday, on May 9, 2007, AS Eesti Ehitus and OÜ Grove Invest entered into an agreement for the settlement of issues arisen in connection with the construction of so-called Luther residential block. In the agreement OÜ Grove Invest and AS Eesti Ehitus confirm that they have no complaints or claims against each other arising from or relating to the agreement for the construction of Luther block or the performance or termination of such agreement. The agreement also provides for the obligation of AS Eesti Ehitus to refund OÜ Grove Invest the overpaid amount of the contractual price in the total amount of EEK 91,097,657 (EUR 5,822,201), of which EEK 40,278,000 (EUR 2,574,233) has already been paid by AS Eesti Ehitus by the time of entry into the agreement. AS Eesti Ehitus cancelled the construction agreement regarding Luther block on February 22, 2007. After that the parties performed the inventory of the object and fixed the works that had been factually performed. AS Eesti Ehitus delivered the object to the developer on March 28, 2007 after which the parties agreed on the amount of costs factually incurred in performing the agreement. In addition, AS Eesti Ehitus transferred to OÜ Grove Invest all material subcontracts, on the basis of which OÜ Grove Invest has been able to continue the performance of suspended works. All other subcontracts were terminated by AS Eesti Ehitus upon the agreement with subcontractors. Therefore, by now the issues relating to cancellation of construction agreement for the Luther block have been settled in the close cooperation of the parties, without recourse to courts. AS Eesti Ehitus did not incur loss or make profit in connection with the project. Jaano Vink AS Eesti Ehitus Tel: (+372) 6400 450 E-mail: eestiehitus@eestiehitus.ee