Recurring revenues of the Company were 589,2 mln EEK (37.7 mln EUR) in 2006, a 7,1% increase compared to the previous year. Growth in the sale of water and wastewater services was 10,8%. “I am very pleased that this year again, the Company has improved its performance: The water quality is better than ever, the wastewater treatment is for the first year fully compliant with EU regulation, and the Company has made significant improvements in its service to customers through the implementation of new Customer Management Software. In addition to strong operational results the financial performance is in line with expectations despite the challenging inflationary environment” explained the Chairman of the Management Board of ASTV Roch Chéroux. “Growth in sales of water and treatment of wastewater, the non incurrence of one time costs from the 2005 IPO and loan re-structuring, and refinement of the Company's asset base have enabled the company to deliver growth in profitability year on year.” added Chéroux The profit after tax of the Company in 2006 was 248 mln EEK (15.9 mln EUR). “Furthermore, as a result of investments into the water network and Ülemiste Water Treatment Plant we are fully compliant with the requirements set out in the European Commission Directive regarding drinking water quality. In addition to this, the investment in the Paljassaare wastewater treatment plant has also allowed compliance with EU standards for the first time and as a result Tallinn was removed from the Helcom hotspots list” said Chéroux. Based on the results of the 2006 financial year, the Management Board and Supervisory Council of AS Tallinna Vesi propose to pay out 196 mln EEK (12.5 mln EUR) of dividends. This is subject to approval by the Annual General Meeting of Shareholders, which will be held in April 2007, and if approved will lead to a 9.80 EEK (0.63 EUR) dividend per A-share. The B-share, which is held by the City of Tallinn is entitled to 10 000 EEK (639,12 EUR) dividend. The level of the 2007 investment programme of the Company is 346,9 million EEK (22.2 mln EUR) and focuses on the continued improvement in the quality of drinking water, environmental performance and customer service. 118 mln EEK (7.5 mln EUR) of the investment programme will be targeted to improve the quality levels of water production and wastewater treatment of the City. Of this, over 33 mln EEK (2.1 mln EUR) will be invested in reconstructing water networks in the City, which will further increasing water quality. This includes the renovation of the drinking water network, the ongoing maintenance works on the Pirita Ülemiste channel will continue, and maintenance work will be completed on the level control devices at the Kaunissaare reservoir. The renovation of one of the Ulemiste Water Treatment Plant water reservoirs will also be completed in 2007 and the tank taken into use again. This reservoir was originally constructed in the 1960s. More than 28 mln EEK (1.8 mln EUR) will be invested in renovating sewerage pipelines, in total approximately 5.5 km of pipeline will be renovated in 2007. Reigo Marosov Head of Public Relations Ph: + 372 6262 209 Reigo.marosov@tvesi.ee