Construction agreement

Arco Construction SIA, a 55% joint venture of Arco's construction division in
Latvia, signed a construction agreement with Stockmann Centrs SIA to design and
construct a tunnel of pedestrians under the Gogola street to the trade centre
„Stockmann” in Riga, Latvia. Agreement volume is not published due to
confidentiality clause.  The construction lasts for 9 months. 

Arco Vara is one of the leading real estate developer in the Baltic's,
undergoing a SEE expansion with presence established already in Ukraine,
Bulgaria and Romania. Core business is real estate development supported by 
brokerage network and construction arm. The company has offices in 20 cities
and employs 500 people. According to 2007 audited consolidated results net
sales was 727 mln kroons (46 mln euros), net profit before minorities 235 mln
kroons (15 mln euros) and assets 3 564 mln kroons (228 mln euros). Arco Vara is
listed on Tallinn Stock Exchange. 

1 EUR=15.6466 EEK

Heigo Metsoja
CFO / Member of the Management Board
+372 6144 654
heigo.metsoja@arcovara.ee
http://www.arcorealestate.com