Arco Invest EOOD, a 100% subsidiary of Arco Vara Group, refinanced under favourable conditions for the Group the loan taken for the development of the Madrid project in Sofia. As a result of that loan amount enlarged from 242.5 mil kroons 258.1 mil kroons (from 15.5 mil euros - to 16.5 mil euros), base rate is 3-month EURIBOR and the annual margin 6.5%. As a result of refinancing, the repayment term was extended for 3 years from 2012 to 2015 and the loan amount increased by 15.6 million kroons (1 mil euros). According to the refinancing agreement between Piraeus Bank Bulgaria and Arco Group, the repayment of the principal starts in July 2010 and ends in June 2015. Extension of the repayment term is a proof of Arco Vara credibility among foreign major banks. Thanks to refinancing, the financial risks of the group have considerably decreased. The Madrid's residential and business building development project located in the city centre of Sofia and will be finished on first half of this year. Detailed information about project: www.arcorealestate.com/?content=488 Arco Vara is a leading real estate developer in the Baltic's, established in 1992. The operations involve real estate development, brokerage, valuation, construction and property maintenance arm. The company is located in 17 cities in Estonia, Latvia, Ukraine and Bulgaria and employs ca 170 people. Arco Vara AS is listed on Tallinn Stock Exchange 1 EUR = 15.6466 EEK Lembit Tampere CEO Arco Vara AS phone: +372 614 4630 info@arcovara.ee www.arcorealestate.com