Today morning, Manutent and the largest Finnish trade and hotel group SOK signed a purchase and sales contract pursuant to which SOK Real Estate Int. OY, a subsidiary of SOK, is going to purchase the share representing 100% of the entire charter capital of the company Otel Plus. The seller is Manutent Hotellid OÜ, a subsidiary of Manutent. Otel Plus is registered in Russia and owns a 255-room four-star hotel on Vassily Island in St. Petersburg. The purchase and sales transaction is the logical sequel to the preliminary lease contract made more than two years ago where the parties agreed on the terms and conditions of the long-term lease of the hotel after the completion of its construction and that also stipulated the rights of SOK to buy the hotel. Manutent is pleased to have the opportunity to sell the hotel in the current market situation where liquidity is very important. The company will earn a profit of about 1.5 million euros by selling the hotel, which is below the profit expected at the time the investment decision was made. The profitability of the hotel's construction decreased because the construction period of the hotel was longer than expected, which caused additional costs, and because of the increase in construction prices. Real estate prices in St. Petersburg have increased considerably during the entire development period. However, the increase in market prices has not had a significant impact on the market price of the completed hotel, because it is restricted by the cost of the 15-year lease agreed with SOK before the start of construction. This why it was profitable for both parties to enter into the contract for sale of the brand new hotel for the price defined with the purchase option of SOK signed at the same time as the lease contract. The hotel will be named Sokos Hotel Vasilievsky and it has 255 rooms with more than 500 beds. The hotel has a restaurant, lobby bar, sauna complex and conference room. The hotel is located on Vassily Island next to the Lieutenant Smidt Bridge, a short walk from Nevsky Prospect. According to the contract signed today, the purchase price of the hotel will be paid by 26 September 2008 at the latest. Manutent plans to use the proceeds of the transaction to redeem all the bonds issued by the company for 7 million euros if necessary and to reduce the loan burden in Latvian development projects. “We appreciate the experience we gained from developing real estate on the St. Petersburg market very highly. We believe that this will not be the last development project of Manutent in Russia,” said Märt Vooglaid, Chairman of the Management Board of Manutent. Reimo Raid Member of Management Board Tel.: +372 50 16190 reimo@manutent.ee