Arco Vara loans in Piraeus Bank Bulgaria refinanced to year 2015

Arco Invest EOOD, a 100% subsidiary of Arco Vara Group, refinanced under        
favourable conditions for the Group the loan taken for the development of the   
Madrid project in Sofia. As a result of that loan amount enlarged from 242.5 mil
kroons 258.1 mil kroons (from 15.5 mil euros - to 16.5 mil euros), base rate is 
3-month EURIBOR and the annual margin 6.5%.                                     

As a result of refinancing, the repayment term was extended for 3 years from    
2012 to 2015 and the loan amount increased by 15.6 million kroons (1 mil euros).
According to the refinancing agreement between Piraeus Bank Bulgaria and Arco   
Group, the repayment of the principal starts in July 2010 and ends in June 2015.
Extension of the repayment term is a proof of Arco Vara credibility among       
foreign major banks. Thanks to refinancing, the financial risks of the group    
have considerably decreased.                                                    

The Madrid's residential and business building development project located in   
the city centre of Sofia and will be finished on first half of this year.       

Detailed information about project: www.arcorealestate.com/?content=488         

Arco Vara is a leading real estate developer in the Baltic's, established in    
1992. The operations involve real estate development, brokerage, valuation,     
construction and property maintenance arm. The company is located in 17 cities  
in Estonia, Latvia, Ukraine and Bulgaria and employs ca 170 people.             

Arco Vara AS is listed on Tallinn Stock Exchange                                

1 EUR = 15.6466 EEK                                                             
Lembit Tampere                                                                  
CEO                                                                             
Arco Vara AS                                                                    
phone: +372 614                                                                 
4630                                                                            
info@arcovara.ee                                                                
www.arcorealestate.com