Signing the sales-purchase agreement of Jonathan project On March 28, 2008 SIA Quality Nami which is a Latvian company belonging to Q Vara Group, signed a sales-purchase agreement with SIA Jonathan on selling the property (28 443 sqm) at Maskavas street in Riga together with a development project. SIA Jonathan represents dutch real estate investors. The agreed transaction price is 11 950 000 EUR. The transaction is subject to two assumptions - positive expert opinion will be received about the technical project and a legal argument on the detail plan ends positively (hereinafter the „Assumptions“). The mentioned argument was initiated by Latvian Saeima members who filed a petition on Riga City Government to Latvian Court of Constitution for issuing a detail plan for Maskavas street 264 property. The case is being argued between third parties and no Q Vara Group companies are involved. Quality Nami has followed Latvian legislation when applying for the detail plan and has received all necessary approvals. According to the information known by today and the preliminary opinion from lawyers Q Vara's management estimates the case to close in about six months and after a positive decision the property sales transaction can be finalized. SIA Quality Nami will receive the sales proceeds in three tranches. The first payment of 9 000 000 EUR will be made in five days after the Assumptions are fulfilled. The second payment of 1 950 000 EUR will be received in two months after the Assumptions are fulfilled. The third payment of 1 000 000 EUR will be received five days after the project's construction permit is handed over to the buyer. Due to the IFRS standards and the fact that the sales transaction was signed before Q Vara Group finalized the 2007 annual report the transaction's value must be recorded also in the annual report of 2007. This causes the net loss of 2007 to increase compared to the loss stated in the 12 month report presented in March. Still the transaction improves Q Vara's liquidity considerably and strengthens the company's balance sheet. Negotiations on Terminal No. 11 project According to the Letter of Intent between Q Vara and HIH Global Invest GmbH that was disclosed in Q Vara's releases on March 5, 2008 and March 25, 2008 the parties agreed to reach a final transaction for raising capital into Terminal No. 11 project by April 7, 2008. By today it is known that the signing of the transaction will be delayed by up to two weeks. Up to now the investors have finalized the project's legal and technical due diligence and during the following two weeks the final shareholders' agreement negotiations will take place. Changes in Latvian subsidiaries' management boards According to SIA Q Estate's and SIA Zebru's shareholders' decision Sarmite Sazoncika was called back from both companies' management boards. Alo Lillepea was named as a new member of the management board in both companies. Additional information: Meelis Šokman Chairman of the management board Q Vara AS Phone: 668 1600
Signing the sales-purchase agreement of Jonathan project, negotiations on Terminal No. 11 project and changes in Latvian subsidiaries' management boards.
| Source: Q Vara