Starting in February 2008 former member of the board of Arco Investeeringute AS Mr Veiko Taevere assumes the role of member of the board of the parent company, Arco Vara AS, where he will be in charge of development. Former member of the board of Arco Vara AS, Mr Veiko Pedosk will focus on the new markets for the Group. “Initially the goal is to activate Arco Vara's development activities in Ukraine, but at the same time we are also constantly exploring new opportunities in Eastern Europe,” said Pedosk. CEO of Arco Vara, Mr Aare Tammemäe said that Mr Taevere has been the member of board of the parent company of Arco Vara's development division, Mr Taevere has already played an important role in all ongoing development projects, and hence is the most capable person for the position. Mr Tammemäe mentioned that while maintaining the company's liquidity it should also take an advantage of opportunities available in the current market situation. Mr. Veiko Pedosk, prior to joining Arco Vara, was Chairman of the Management Board of AS Sampo Liising from 1997 to 2002 and Member and Chairman of the Management Board of Estonian Leasing Association from 1998 to 2002. In 1994 -1996 he worked for the Estonian Innovation Bank at different positions and until 1994 he worked for the car-company Baltmotors Mr. Pedosk graduated from Tallinn University of Technology, where he specialized in Business Administration and has gone through additional training including Euromoney courses. Mr Veiko Taevere, prior to joining the parent company of Arco Vara's development division, Arco Investeeringute AS, was chief financial officer of Arco Transport between 1999-2006 and head of the leasing department of Tallinna Pank in 1996-1999. Arco Vara is a leading real estate developer in the Baltic's, established in 1992. The operations involve real estate development, brokerage, construction and investment management arm. The company is located in 30 cities in the Baltic's, Ukraine, Bulgaria and Romania and has in total 649 employees. According to 9 months results 2007 consolidated revenues were 687 mln kroons (44 mln euros), net profit 264 mln kroons (17 mln euros) and assets 3 536 mln kroons (226 mln euros). Arco Vara is listed on Tallinn Stock Exchange. Additional information: Heigo Metsoja IRO +372 6144 654 Heigo.metsoja@arcovara.ee http://www.arcorealestate.com