AS Tallinna Vesi total sales increased to 582.3 million kroons in the nine months of 2010

During the first nine months of 2010 AS Tallinna Vesi's total sales increased   
year on year by 2.1 per cent to 582.3 mln EEK. The Company's underlying         
operating profit for the first nine months of 2010 from water and wastewater    
related activities decreased by 6.8 per cent to 292.0 mln EEK compared to the   
nine months of 2009.                                                            
AS Tallinna Vesi's CEO Ian Plenderleith said that the volumes sold to           
residential customers rose 0.8% in the 3rd quarter of 2010. “We believe that    
this is mainly due to the combination of the economic conditions getting        
gradually better during the last year, supported by the hot summer and the      
increased need for gardening water,” said Plenderleith. The volumes sold to     
commercial customers inside the main service area also increased compared to    
last year by 2.4%, this can be attributed to the recovery of the leisure sector.

In total then the Company's operating profit for main and other activities for  
the 3rd quarter of 2010 was 101.5 mln EEK, a decrease of 8.3 mln compared to the
same period in 2009.                                                            
As of September this year, the total number of employees was 319 compared to 349
in September 2009. The decrease in staff size is primarily due to reorganization
in various departments at the end of 2009. At the end of the quarter, 30        
September 2010, the Group consisted of 2 companies. The subsidiary Watercom OÜ  
is wholly owned by AS Tallinna Vesi and consolidated to the results of the      
Company. Watercom OÜ will focus on pursuing the parent company's non-regulated  
business opportunities across Estonia.                                          

“A major highlight for AS Tallinna Vesi in the third quarter included another   
external recognition of the Company's high level corporate transparency, as the 
Baltic Corporate Governance Institute awarded the Company as the best Corporate 
Governance in Estonia,” added Plenderleith.                                     
In accordance with the signed Services Agreement the Company submitted the 2011 
tariff application to the City of Tallinn. Discussions with City of Tallinn are 
ongoing and, as in previous years, the application is being analyzed based upon 
the original business plan and the Ofwat regulatory model. As a consequence of  
the Anti-Monopoly Bill the City of Tallinn can only recommend but no longer
approve the tariffs that will be applied from 1 January 2011, final approval
can only be given by  the CA. “Therefore, at this point in time the Company is
unable to say what 
next year's tariffs will be as it is unclear at the moment how the CA intends to
analyze and proceed with the tariff applications,” said Plenderleith.

Priit Koff
Head of Public Relations
AS Tallinna Vesi
+372 62 62 209
priit.koff@tvesi.ee