On May 6, 2008, the Listing and Surveillance Committee of the Tallinn Stock Exchange reviewed the circumstances and materials collected in the course of supervisory proceedings carried out with respect to AS Q Vara (hereinafter: Q Vara) and decided to impose a fine in the amount of 50 000 kroons to Q Vara for violation of TSE Rules. Circumstances: 1. Q Vara disclosed its year 2007 unaudited financial statements on May 6, 2008, i.e. 6 days later than after 4 months has passed from the end of the reporting period (2007 financial year). Q Vara has not disclosed the audited financial statements for the year 2007 by the decision. 2. In its letter to the Exchange from May 6, 2008, Q Vara explained the report was ready on March 27, 2008 but since Q Vara sold its Latvian real estate on March 28, 2008 (Jonathan's real estate project), that had significant effect on the report and according to the IFRS it is obligatory to take such transactions into account in the next period's report and as a request of the auditors the audit process was started once again due to the selling of the Jonathan's real estate project. In its e-mail form April 29, 2008 a representative of Q Vara also explained the delay of the audited report with the need of revision of the reports by the Polish auditors. 3. Q Vara disclosed its 2007 financial year 12 months interim report on March 14, 2008. i.e. 14 days after the deadline stated in the Requirements for Issuers (hereinafter RI) clause 5.4.5., giving an advance notification in a stock exchange announcement on February 29, 2008. 4. Q Vara justified the delay of the intermediary report with Silukaln real estate project, other real estate investments and inventory value changes and the lack of the auditors' final feedback. In addition, a reason for violation of the rules was the resignation of an accountant of the Latvian subsidiary and implementation of new accounting software. 5. On January 2, 2008, Q Vara disclosed a stock exchange announcement about the interest payment on January 2, 2008. According to the announcement, the list of investors entitled to receive the interest was closed on January 7, 2008, i.e. three exchange days after the disclosure of the announcement. Information should have been published on December 18, 2007. Q Vara delayed in disclosing information for 6 exchange days. 6. The exchange has informed Q Vara of the supervisory proceedings and sending the materials for review to the Listing and Surveillance Committee. Considering the materials submitted, the Committee concluded: 1. Q Vara did not follow properly the information evaluation and disclosure obligation in publication of the audited financial statements for the year 2007, the interim report for the 12 months of year 2007 and fixing the list of the Q Vara has breached obligations set in RI, that oblige the issuer to disclose its audited financial results at least four months and interim report two months after the end of the accounting period. Q Vara has also breached the requirements of notification of the closing date for the security holder list. 2. Violation of the rules has been evidenced, as assessed by the Committee, by the circumstances identified in the course of the supervisory proceedings carried out by the TSE. 3. There are no objective circumstances that would have prevented Q Vara to follow the obligations properly. There are sufficient grounds for legal protection measures within the competence of the TSE. 4. Proceeding from the above the Committee concluded that Q Vara's activities have been in conflict with RI clauses 1.2.1, 5.3.1, 3.6.2, 8.3.3, 5.4.5 and 2.4.1. Background: According to clause 1.2.1. of RI, the Issuer is obliged to secure the disclosure of the information specified in RI in such a form and within such time limits as specified herein. According to clause 5.3.1. of RI, is an Issuer required to make public the audited annual report immediately after its approval by the supervisory board but not later than four (4) months after the end of the accounting period. According to clause 5.4.2.of RI, shall an issuer of debt securities publish semi-annual interim reports on their operations and financial results for 6 months and 12 months of the financial year (preliminary annual accounts), consisting also data of relevant half-year. According to clause 5.4.5. of RI, the Issuer is obliged to make public an interim report immediately after its preparation by the management board, but no later than two (2) months after the end of the reporting period. According to clauses 8.3.3. and 3.6.2. of RI, is an Issuer required to disclose information about closing the list of holders of securities at least 9 (nine) trading days before of the record date. According to clause 2.4.1. of RI, information is deemed disclosed when made public as a notice through the Exchange information system. Tallinn Stock Exchange Market Services +372 6408800