Conclusion of agreement for the transfer of shares


Arco Vara group's Latvian brokerage office sold its 50% shareholding in Latvian
special purpose company called SIA Plavnieku centrs for 11.5 mln kroons (0.7
mln euros). The group had invested to the project 15.7 mln kroons (1.0 mln
euros). The buyer is SIA Plavnieku centrs itself. After the transaction Arco
Vara group has no shareholding in the project. 

The transaction does not have material economical effect on the activities of
Arco Vara AS and does not qualify as a transfer of significant shareholding nor
a related party transaction within the meaning of “Requirements for Issuers” of
the NASDAQ OMX Tallinn Stock Exchange Rules. The members of the supervisory
board and management board of Arco Vara AS do not have any personal interests
in the incorporation of the company. 

Arco Vara is one of the leading real estate developer in the Baltic's,
undergoing a SEE expansion with presence established already in Ukraine,
Bulgaria and Romania. Core business is real estate development supported by
brokerage network and construction arm. The company has offices in 20 cities
and employs 460 people. According to 2007 audited consolidated results net
sales was 727 mln kroons (46 mln euros), net profit before minorities 235 mln
kroons (15 mln euros) and assets 3 564 mln kroons (228 mln euros). Arco Vara is
listed on Tallinn Stock Exchange. 

1 EUR=15,6466 EEK

Heigo Metsoja
CFO / Member of the Management Board
+372 6144 654
heigo.metsoja@arcovara.ee
http://www.arcorealestate.com