Arco Vara signed a deal to acquire a 55% stake in small Estonian construction company called Tempera Ehitus. The parties agreed not to disclose the acquisition value. The final payment for the stake depends on the three year financial performance of Tempera Ehitus. Arco Vara head of construction division Mr. Ahto Altjõe said that the prime purpose of the deal is to proceed with the expansion strategy on Estonian market. Arco Vara confirms that the transaction does not constitute a transaction with related parties or financially important enough within the meaning of the Tallinn Stock Exchange Rules and the members of the supervisory council and management board of Arco Vara are otherwise not personally interested in the transaction. Tempera Ehitus has been active on the market for three years. 2007 revenues were 40,8 mln kroons (2,6 mln euros), net profit 0,8 mln kroons (0,05 mln euros) and assets 9,5 mln kroons (0,6 mln euros). All revenue was made in Estonia. Biggest projects in 2007 were Baltika's production facility, Krimelte production facility, production facilities in Kavastu and Aardla and Scania Eesti expansion. Arco Vara is a leading real estate developer in the Baltic's, undergoing a CEE expansion with presence established already in Ukraine, Bulgaria and Romania. The operations involve real estate development, brokerage, construction and investment management arm. The company has offices in 30 cities and has in total 649 employees. According to 2007 unaudited consolidated results net sales was 727,2 mln kroons (46,5 mln euros), net profit before minorities 235,5 mln kroons (15,1 mln euros) and assets 3 564,0 mln kroons (227,8 mln euros). Arco Vara is listed on Tallinn Stock Exchange. 1 EUR=15,6466 EEK Heigo Metsoja Head of Investor Relations +372 6144 654 heigo.metsoja@arcovara.ee http://www.arcorealestate.com