Arco Vara informs the shareholders that the District Court of Tallinn on August 11th has maintained a Tallinn Administrative Court decision to halt the execution of a resolution by Tallinn City Council that establishes the zoning and construction rights in the Tivoli project on Narva street 67 in Tallinn, Estonia, as a measure of preemptive legal protection. The District Court decision on establishing preemptive legal protection is not subject for appeal. A private person living in a flat nearby the Tivoli project has contested the resolution, arguing that 780 parking lots in the approved zoning plan is not in accordance with Tallinn Parking Development Plan for years 2006-2014, according to the number of parking lots in Tivoli project should be 907.In addition, the complainant has estimated, that administrative act, which determined the zoning plan, has lack of motivation over matters of facts why changes in master plan has been needed and why the need of environmental impact assessment has not been considered. Arco Vara is involved in the process as a third person. “Considering Arco's will to execute the project in longer perspective, we figure the probability of finally receiving a positive decision high,” says Arcos CEO Mr. Aare Tammemäe. Arco Vara will inform shareholders on the further developments in the proceedings between the private person and Tallinn City Council. Arco Vara is a 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 29 cities and employs over 600 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 IRO +372 6144 654 heigo.metsoja@arcovara.ee http://www.arcorealestate.com