Q Vara realizes two properties in Sofia


On September 12, 2007 Q Vara AS entered into an agreement for selling a 60%
ownership in its Bulgarian subsidiary EOOD Q Delta. The total transaction value
is EUR 6 million. 

According to the agreement Q Vara AS realizes its 60% ownership in its
Bulgarian subsidiary EOOD Q Delta for EUR 6 000 000 of which the 200 000 EUR
down payment was made after the agreement was reached. The remaining amount
will be paid after the final sales-purchase agreement is signed. According to
the agreement the parties expect to reach the final sales-purchase agreement by
October 25, 2007. The final buyer of the shares is the current minority
shareholder in EOOD Q Delta - OOD Delta Imoti. 

EOOD Q Delta is Q Vara AS's subsidiary that owns two land plots in Sofia (total
area is 10 950 sqm). Q Vara acquired its 60% ownersip in the company in August
2006 for 2 983 750 EUR. Since the initial investment was made the expenses have
totalled 130 000 EUR. The project's return on invested capital is a significant
92%. 

3 000 000 EUR of the transaction's proceeds will be used for repaying GILD
arbitrage's loan. The remaining 3 000 000 EUR will stay on Q Vara's account and
will be used for financing other development projects (Terminal 11, Taevasmaa,
Pärtlepõllu, Maakri, Silukalni, 365, Jonathan, Trophy). 

The described transaction is the first step among various changes that also
include the realization of additional 1-2 properties and reducing the Group's
annual operating expenses by 15-20 million EEK. As a result Q Vara Group will
secure strong liquidity, focuses on its current projects and continues its
investments into new profitable projects in the Baltics and Bulgaria but also
in the new markets as profitable opportunities arise. 

Additional information:
Meelis Šokman
Chairman of the management board
Q Vara AS
Phone: 668 1600