Sources of Manutent's revenue in 2007

In the interests of transparency and as required by the stock exchange,
Manutent OÜ hereby discloses the division of its sales revenue earned in 2007
and the profitability of different projects. 
The operating income of Manutent amounted to 155 million kroons. The main
sources of revenue were sale of the registered immovables located between
Vilmsi, Gonsiori and Vesivärava Streets for 104 million kroons and sale of
apartments in the Ülemiste Residential District gallery houses for 33 million
kroons. 
Manutent organised the purchase of the registered immovables in the so-called
‘Vilmsi triangle' and initiated a common detailed plan for the registered
immovables that entailed the construction of a multifunctional multi-storey
building. Initiation of a detailed plan in the agreed extent was the main
precondition to the entry into a real right contract according to the agreement
under the law of obligations entered into with the buyer in the end of 2006.
Manutent met the aforementioned condition and sold the registered immovables in
August 2007. The operating profit earned by the company from said transaction
was 42 million kroons. 
Apartments of the last construction stage in Ülemiste Residential District, the
gallery houses, were sold in summer 2007. A total of 72 apartments were sold
for 99 million kroons. Since more than a half of the apartments in the gallery
houses had been sold in advance in 2006 and the majority of the building works
on the flats had been completed in 2006, then some of the sales revenue from
the gallery houses had been recorded in 2006 using the percentage of completion
method. The remaining sales revenue in the amount of 33 million kroons and
operating income in the amount of 3.7 million kroons were recorded in 2007. 
The third important source of revenue for Manutent in 2007 was the sale of a
3.7-hectare registered immovable in Tänassilma by the Pärnu Road. The sales
transaction was concluded through the transfer of the shares of project company
Tammlaane OÜ. The relevant revenue was recorded in the 2007 Annual Report of
Manutent as financial income from the sale of a subsidiary in the amount of 38
million kroons. 
Manutent earned a total of 86 million kroons worth of revenue from sales of
real estate Estonia in 2007. 
The biggest sources of expenditure in 2007 were labour costs in the amount of
12 million kroons and other administrative expenses in the amount of 24 million
kroons. Interest expenses amounted to 19 million kroons. A loss of 13 million
kroons was incurred from changes in currency exchange rates. The main reason
behind the loss from exchange rates was the change in the exchange rate of
Russian roubles invested in the hotel project against the euro and the kroon.
Since the source of revenue after the completion of the hotel had been agreed
in euros, then income in future periods will increase by the given exchange
rate loss. 
Net profit for the financial year amounted to 16.9 million kroons.

Reimo Raid
Financial Director,
 tel.:+372 50 16 190