Arco Vara AS sold its shares of Arco Ukraina Valduste OÜ (86.66% subsidiary of Arco Vara) with the share capital of 150 000 kroons (9587 euros). Transaction was carried out in multiple phases, and during first phase the share capital was raised with non-monetary contribution which resulted with the increase of Arco Vara AS share proportion up to 86.66 percent. The purpose of the transaction was to exit from activities which produced loss to the Group and which sustaining needed financial support. That's why Arco Vara does not consider its attendance in Ukraine as perspective. Arco Ukraina Valduste OÜ was holding company for Arco Vara brokerage bureau operating in Kiev, Ukraine. Since year 2009 Arco Vara has focused your main business activity to Estonia, Latvia and Bulgaria. The 89,66 per cent interest in Arco Ukraina Valduste OÜ was acquired by Bagatini OÜ, who was minor shareholder of the company and who has after transaction 100% of the shares of Arco Ukraina Valduste OÜ. This transaction represents a transaction with a related person within the meaning of “Requirements for Issuers” of the NASDAQ OMX Tallinn Rules. The core shareholder and member of the board of Bagatini OÜ is Juri Nikitin, who is as well one of the members of the board of Arco Ukraina Valduste OÜ. The value of the transaction was 3912 kroons (250 euros), and with transaction Arco Vara AS gained extraordinary profit of 80 000 kroons (5113 euros), which was a result of selling out from the Group company with negative equity. The transaction does not have material economical effect on the activities of Arco Vara Group and does not qualify as an acquisition of significant holding. The members of the supervisory board and the management board of Arco Vara AS have no other personal interest in the transaction. Arco Vara is a leading real estate developer in the Baltic's, established in 1992. The operations involve real estate development, brokerage, valuation, construction and property maintenance arm. The company is located in 18 cities in Estonia, Latvia, Ukraine and Bulgaria and employs ca 250 people. Arco Vara AS is listed on Tallinn Stock Exchange. Lembit Tampere Member of Management Board Arco Vara AS phone: +372 614 4630 info@arcovara.ee www.arcorealestate.com/