On September 12, 2007 Q Vara AS entered into an agreement for selling a 60% ownership in its Bulgarian subsidiary EOOD Q Delta. The total transaction value is EUR 6 million. According to the agreement Q Vara AS realizes its 60% ownership in its Bulgarian subsidiary EOOD Q Delta for EUR 6 000 000 of which the 200 000 EUR down payment was made after the agreement was reached. The remaining amount will be paid after the final sales-purchase agreement is signed. According to the agreement the parties expect to reach the final sales-purchase agreement by October 25, 2007. The final buyer of the shares is the current minority shareholder in EOOD Q Delta - OOD Delta Imoti. EOOD Q Delta is Q Vara AS's subsidiary that owns two land plots in Sofia (total area is 10 950 sqm). Q Vara acquired its 60% ownersip in the company in August 2006 for 2 983 750 EUR. Since the initial investment was made the expenses have totalled 130 000 EUR. The project's return on invested capital is a significant 92%. 3 000 000 EUR of the transaction's proceeds will be used for repaying GILD arbitrage's loan. The remaining 3 000 000 EUR will stay on Q Vara's account and will be used for financing other development projects (Terminal 11, Taevasmaa, Pärtlepõllu, Maakri, Silukalni, 365, Jonathan, Trophy). The described transaction is the first step among various changes that also include the realization of additional 1-2 properties and reducing the Group's annual operating expenses by 15-20 million EEK. As a result Q Vara Group will secure strong liquidity, focuses on its current projects and continues its investments into new profitable projects in the Baltics and Bulgaria but also in the new markets as profitable opportunities arise. Additional information: Meelis Šokman Chairman of the management board Q Vara AS Phone: 668 1600