Arco group refinanced its long-term debt in SEB bank in projects Laeva and Tivoli in Tallinn, Estonia. As a result of the agreement Arco must pay back principal in amount of 40.0 mln kroons (2.6 mln euros) and SEB Bank agrees to release liquidity covenant. According to the covenant Arco had to maintain the level of liquid assets in amount of 150 mln kroons (9.6 mln euros) on SEB accounts. The maturity of the debt is still March 2010 and new outstanding balance will be 126.0 mln kroons (8.1 mln euros). Interest includes SEB's base rate on kroon facilities and the total weighted average rate is 8.12% per annum. Arco Vara is one of the leading real estate developer in the Baltic's, undergoing a SEE expansion with presence established already in Ukraine and Bulgaria. Core business is real estate development supported by brokerage network and construction arm. The company has offices in 20 cities and employs 400 people. According to 2007 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