On 18 February 2008 OÜ Eurocon, the subsidiary of AS Eesti Ehitus, incorporated a new company INSTAR PROPERTY OÜ. OÜ Eurocon will own 100% of the shares of the new company. AS Eesti Ehitus owns 64% of the shares of OÜ Eurocon. At the time of incorporation the share capital of INSTAR PROPERTY OÜ is EEK 40,000 (approximately EUR 2,557). INSTAR PROPERTY OÜ will operate mainly as a holding company and it is proposed that in the course of intra-group restructuring activities all direct and indirect shareholdings in real estate development projects in Ukraine will be transferred to the new company. The proposed restructuring activities enable the group to clearly separate its different activities in the Ukrainian market (general contracting in construction and real estate development) and thereby increase transparency and simplify the adoption of management decisions. The incorporation of the new company does not have direct economical effect on the activities of AS Eesti Ehitus. The incorporation of the company is not a related party transaction within the meaning of “Requirements for Issuers” of the Tallinn Stock Exchange Rules and the members of the supervisory board and management board of AS Eesti Ehitus do not have any personal interests in the incorporation of the company. Sulev Luiga AS Eesti Ehitus Tel: 6400 450 E-mail: sulev.luiga@eestiehitus.ee