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 second stage of the project “Madrid”. 

Second stage includes the interior of the building. The value of the contract
is 48,5 mln kroons (3,1 mln euros). 

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. 

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

Arco Vara is a leading real estate developer in the Baltic's, undergoing a CEE
expansion with  presence established in Ukraine, Bulgaria and Romania. The
operations involve real estate  development, brokerage, construction and
investment management arm. The company is located in 30 cities and has in total
649 employees. According to 9 months results 2007 consolidated revenues were
687 mln kroons (44 mln euros), net profit 264 mln kroons (17 mln euros) and
assets 3 536 mln kroons (226 mln euros). Arco Vara is listed on Tallinn Stock
Exchange. 

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