Sale of subsidiary Nordecon Infra SIA

On 15 February 2010 Nordecon International AS sold its participation in Latvian
registered company Nordecon Infra SIA. Nordecon Infra SIA operates in Latvian
Republic mainly in Riga area and its principle activities are construction of
water- and sewage networks. The company's share capital is 3 045 Latvian lats
(approximately 67 thousand kroons/4.3 thousand euros) of which Nordecon
International AS owned 56 per cent. 

Nordecon Infra SIA's business in 2009 was not profitable. Losses were incurred
due to major clients' inability to pay in due periods and also from problems
caused by big fluctuations on the construction market. It is the view of
Nordecon International AS management that profitable construction of external
networks in Latvia is questionable also in the near future and continuously
involves high risks. To continue activities in Latvia in current manner
requires additional investments. Nordecon International however does not
consider it reasonable to invest additional sums in light of current market
situation. 

In coming years Nordecon International Group considers participating
project-by-project basis in those Latvian construction tenders where profitable
outcome can be expected. Participation in those projects is either
independently or with partners. However, it is unlikely that Group's business
in Latvian remains on the levels achieved during years 2008-2009. 

Nordecon International AS sold its shares in Nordecon Infra SIA to current
minority shareholder, an Estonian private person. The main terms of the
agreement are: 
- Transfer of ownership is on 15 February 2010;
- Share purchase price is 0.1 thousand kroons (0 thousand euros). As per
Nordecon International, the price of shares reflects the current economic
situation of the company; 
- Nordecon International remains a guarantor of construction guarantees issued
under its name to Latvian clients. The value of long-term outstanding
guarantees at the moment of transaction is approximately 47 million kroons (3
million euros); 
- Nordecon Infra SIA will immediately change its business name after the
transaction. 

Nordecon Infra SIA's financial figures (revenue, assets and equity), compared
to corresponding last available audited figures of Nordecon International
Group, do not exceed the 10% level. It is therefore not a sale of significant
holding within the meaning of “Requirements for Issuers” of the NASDAQ OMX
Tallinn Stock Exchange regulations. Neither is it a significant related party
transaction within the previously mentioned requirements. The members of the
supervisory board and management board of Nordecon International AS do not have
any personal interests in the sale of the company. 


Nordecon International is a group of construction companies whose core business
is general contracting and construction management in the construction of
buildings and infrastructures in Estonia, Latvia, Lithuania and Ukraine. In
addition, in Estonia our companies act as independent contractors in road
construction and maintenance, environmental engineering, the assembly of
reinforced concrete elements, and the performance of cast-on-site concrete
works. The parent of the Group is Nordecon International AS, a company
registered and located in Tallinn, Estonia. In addition to the parent company,
there are more than 20 subsidiaries in the Group. The consolidated revenue of
the Group in 2008 was 3.9 billion kroons (247 million euros) and the
consolidated net profit was 171 million kroons (11 million euros). In 2009
Nordecon International Group employed more than 1,000 people. Since 18 May
2006, the company's shares have been quoted in the main list of the NASDAQ OMX
Tallinn Stock Exchange. 

1 euro = 15.6466 kroons
1 Latvian lats = 22.0618 krooni (15 February 2010)


Raimo Talviste
Nordecon International AS
Head of Finance and Investor Relations
Tel: +372 615 4445
Email: raimo.talviste@nordecon.com
www.nordecon.com