16.03.2010 came into force entry in the commercial register about reduction of Arco Vara AS share capital. Share capital was reduced from 952 841 000 kroons (60 897 639 euros) to 47 417 070 kroons (3 030 503 euros). During the share capital reduction 90 542 443 shares were cancelled and 4 741 707 shares remained. Reduction of share capital was decided by the Extraordinary General Meeting of the Shareholders of Arco Vara AS on 11.12.2009, about which was published the stock exchange news on 11.12.2009. Purpose for reduction of the share capital of Arco Vara AS was to decrease volatility of the price of shares of Arco Vara AS, to provide an opportunity for more efficient pricing of the shares on the stock exchange and to provide an opportunity for further strengthening the capital structure. Since resolution of shareholders Extraordinary General Meeting where the share capital reduction was decided, the value of Arco Vara AS share in NASDAQ OMX Tallinn Stock Exchange has been constantly increasing. Founded in 1992 Arco Vara is one of the leading property developers in the Baltic States. The main business of the company is property development, which is supported by the group's own property brokering, valuation, construction and property management units. The company has representative offices in 17 towns across Estonia, Latvia, Ukraine and Bulgaria. The Group has a staff of ca 170. 1 EUR=15.6466 EEK Lembit Tampere Member of the management board Arco Vara AS Tel: +372 614 4630 info@arcovara.ee http://www.arcorealestate.com/