On 2 Dec 2009, Tallinna Teede AS, a wholly owned subsidiary of AS Merko Ehitus, acquired the 100-percent holding in the company AS Vooremaa Teed from the Republic of Estonia. The purchase price of the company was EEK 47 989 570, which must be paid within 7 days from the signature of the contract of sale. The principal activity of AS Vooremaa Teed is road construction and maintenance in Jõgeva County. Pursuant to the development plan of Tallinna Teede AS, the company was acquired in order to facilitate expansion into the road maintenance market and to establish a road construction division in central Estonia. The acquisition of AS Vooremaa Teed also allows the better utilisation of the existing resources of Tallinna Teede AS, and creates synergy for portfolio expansion. Pursuant to the rules for issuers established by the NASDAQ OMX Tallinn Stock Exchange, the above-mentioned sale transaction does not constitute a transaction with a related party. The members of the supervisory and management boards of Tallinna Teede AS do not have any other, private interest in the transaction. 1 EUR = 15.6466 EEK Alar Lagus Member of the Board +372 6 805 109 alar.lagus@merko.ee