With objective to make the structure of Manutent OÜ more transparent and reduce the maintenance costs of subsidiaries, the Management Board of Manutent OÜ and the Management Board of the sole shareholder of the latter, Harustemos OÜ, have adopted the following resolutions about merger of companies: - Subsidiary OÜ Ülemiste Elurajoon will be merged with Manutent Eesti OÜ, which manages the Group's investments in Estonia. Within the last four years, OÜ Ülemiste Elurajoon has been dealing with the development and sale of the residential area located on 24 hectares of land in Rae Rural Municipality. Since almost all plots of land and flats have been completed and sold by now, then it is practical to merge the subsidiary, which has terminated active operations, with the parent company. The shares of both merging companies have been pledged as security to the issue of the commercial papers which were issued by OÜ Manutent to the value of 100 million kroons. The shares of Ülemiste Elurajoon will be cancelled in the course of the merger. Since the shares of both merging companies have been pledged for the same purpose, then the merger will not bring about any changes in the value of the security to the commercial papers of Manutent. - The sole shareholder of Manutent OÜ, Harustemos OÜ, will be merged with Manutent OÜ. As a result of this Märt Vooglaid, who until now held 100% of the share in private limited company Harustemos, will become the sole shareholder of Manutent OÜ. Admirali Korterid OÜ, where OÜ Harustemos was the sole shareholder, will also be merged with Manutent OÜ. The assets owned by the latter were plots of land in a 3200-square metre area in Kadriorg between Gonsiori, Vilmsi and Vesivärava Streets. A detailed plan for said plot of land was initiated in June this year and in August, Admirali Korterid sold the plots of land to another development company that is not associated with the Manutent Group or Märt Vooglaid. This transaction in the amount of 67 million kroons had a good impact on the cash flow of the Harustemos Group. As a result of the merger of Manutent OÜ and Harustemos OÜ, it will have the same impact on the cash flow of the Manutent Group. About the company: Manutent OÜ, which in 2005 was declared the most successful company in Estonia by the Äripäev business paper, is a holding company that coordinates and holds regional subsidiaries in target markets - Manutent Eesti OÜ, Manutent Latvia SIA and Manutent Hotellid OÜ, the subsidiary that manages investments in Russia. Manutent OÜ, which was established in 2001, is one of the leading property developers in the Estonian market that focuses on the development of the most attractive areas in Tallinn and its close surroundings. For further information please contact: Reimo Raid Member of the Management Board Manutent OÜ Теl.: 50 16 190