Foundation of a subsidiary

On June 19, 2007 OÜ Skano registered in the Ukraine subsidiary TOV Skano Ukraina
with share capital of 50,500 hryvnia (117,020 kroons / 7,479 euros). The shares 
of the company are 100% hold by Skano OÜ, a subsidiary of Viisnurk AS. The      
purpose of establishing TOV Skano Ukraina was to start retail of furniture in   
bigger cities of the Ukraine.                                                   

Developing retail business is a part of the business strategy of the Furniture  
Division of Viisnurk AS aimed at moving closer to the end user. Skano is a      
trademark of Viisnurk AS for furniture.                                         

Viisnurk AS is a wood-processing company that manufactures and markets domestic 
furniture and building materials. It holds 100% of the shares of its subsidiary,
Skano OÜ. The latter, in turn, holds 100% of the shares of the subsidiary SIA   
Skano situated in Latvia and 100% of the shares of the subsidiary UAB Skano LT  
situated in Lithuania.                                                          


Einar Pähkel                                                                    
CFO                                                                             
+372 447 8331                                                                   
einar.pahkel@viisnurk.ee