Construction contracts

Arco Construction SIA signed the contract for the design and construction of
water treatment plant in Ogre village in Latvia. Total value of the contract is
48,5 mln kroons (3,1 mln euros) without VAT and lasts for two years. 

Arco Ehitus OÜ signed the contract for the renovation and expansion of water
and sewage network in Võru and Antsla cities. Total value of the contract is
57,3 mln kroons (3,7 mln euros) without VAT and lasts for two years. 

55% of Arco Construction SIA belongs to Arco Ehitus OÜ. Arco Ehitus OÜ is fully
owned subsidiary of Arco Vara AS. 

Arco Vara is a leading real estate developer in the Baltic's, undergoing a CEE
expansion with presence established already in Ukraine, Bulgaria and Romania.
The operations involve real estate development, brokerage, construction and
investment management arm. The company has offices in 30 cities and has in
total 649 employees. According to 2007 unaudited consolidated results net sales
was 727,2 mln kroons (46,5 mln euros), net profit before minorities 235,5 mln
kroons (15,1 mln euros) and assets 3 564,0 mln kroons (227,8 mln euros). Arco
Vara is listed on Tallinn Stock Exchange. 

1 EUR=15,6466 EEK

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