Arco Vara concluded a construction contract in Bulgaria

A subsidiary of Arco Investeeringute AS, Arco Invest EOOD and construction
company GBS-Sofia Jsc. (Glavbolgarstroy), concluded a construction contract for
the construction of first stage of the project “Madrid”. 

First stage includes the shell-stage of the building. The amount of the
contract is 5,3 mln euros and the construction lasts for 18 months. 

The project was acquired on 02.08.2007 with construction right already in
place. The land plot is located in the city center and includes in total 24 700
m2 of residential and commercial spaces. The project is completed in the autumn
in 2009. 

“Arco's operations on Sofia market follow our expansion strategy- at first, on
the new markets we acquire the land plots already with construction rights so
that the execution could start immediately. This way Arco is able to create
much faster capital in order to take on zoning risks in the following
projects”, said CEO Viljar Arakas. 

Arco Vara AS is a listed integrated property developer, constructor, broker and
investment manager in the Baltic countries, undergoing a CEE expansion with
presence established in Ukraine, Bulgaria and Romania. Its 2007 1HY revenues
were 31 mln euros and net profit 14,5 mln euros. 

Please, find the visuals of the project attached to this announcement.


1 EUR=15,6466 EEK

Additional information:
Heigo Metsoja
Head of Investor Relations
+372 6144 654
heigo.metsoja@arcovara.ee
http://www.arcorealestate.com