On 7 October 2008, AS Merko Ehitus transferred to OÜ Raeso a 100 percent holding in the company OÜ Põrguvälja Soojus (registry code 10711682). The selling price of the company was 12 million kroons; 6 million kroons of the price was paid upon the conclusion of the contract of purchase and sale, and the remaining 6 million kroons shall be paid no later than on 31 Dec 2009. In 2007, OÜ Põrguvälja Soojus constructed a boiler house with a 10MW capacity on the premises of OÜ Rae Tehnopark, with the aim to provide guaranteed heating supply for the companies operating on the premises of the industrial park. The company was transferred because the development of heat energy production does not coincide with the group's strategic objectives. Pursuant to the rules for issuers established by the Tallinn Stock Exchange, the above-mentioned sale transaction does not constitute a transaction with a related party. The members of the supervisory and management boards of AS Merko Ehitus do not have any other, private interest in the transaction. Alar Lagus Member of the Board +372 6 805 109 alar.lagus@merko.ee