In keeping with the development strategy of the Group, at its 14 June 2010 meeting, the Supervisory Board of Harju Elekter made a decision to establish a subsidiary in the Kingdom of Sweden. Today, 15 June 2010, the agreement of corporate foundation of Harju Elekter AB, a subsidiary of AS Harju Elekter, was signed in Stockholm. Share capital of the newly founded company is SEK 1 million, of which 90% is held by AS Harju Elekter and 10% by AS Vallin Baltic. Share capital contributions are in cash and sufficient to establish and launch the operations of the newly created company. By establishing the subsidiary Harju Elekter AB, we will increase our presence and sales on the Swedish market, offering our clients a wide selection of products, first and foremost electrical engineering products, from companies in the Harju Elekter Group. Andres Allikmäe, Chairman of the Management Board, was appointed Chairman and Ülo Merisalu (Managing Director, AS Harju Elekter Elektrotehnika) was appointed Member of the Management Board of the subsidiary by AS Harju Elekter, and Andres Olt, a Swedish national, was appointed by AS Vallin Baltic. Harju Elekter is a leading manufacturer of electrical equipment and materials in the Baltic States. Harju Elekter Group includes the manufacturers of electrical plants in Estonia, Finland and Lithuania: AS Harju Elekter Elektrotehnika (100%), Satmatic Oy (100%) and Rifas UAB (51%), as well as the manufacturer of telecommunications products AS Eltek (100%) and the related company AS Draka Keila Cables (34%). Harju Elekter also has financial investments in the Latvian seller of electrical plants SIA Energokomplekss (14%) and the Finnish stock company PKC Group Oyj (8%). The main activity of AS Vallin Balti includes sale of electrical equipment and measurements in Baltics. Andres Allikmäe Chairman of the Board Phone: +372 674 7400