On July 27, 2008 AS Q Vara's share capital increase by 8 600 000 EEK was registered in Estonian Commercial Registry after which Q Vara's share capital amounts 191 111 000 EEK. The share capital was increased by converting the loan granted by OÜ Q Capital according to the loan agreement signed by OÜ Q Capital and AS Q Vara on June 25, 2008, into equity. According to Q Vara's shareholders' decision 860 000 new shares were issued to OÜ Q Capital with 10 EEK nominal value and 90 EEK share premium as a result of which Q Vara's share capital increased by 8 600 000 EEK and share premium account increased by 77 400 000 EEK. After the transaction OÜ Q Capital owns 4,5% of AS Q Vara's share capital. After the transactions were registered in the commercial registry Q Vara's equity increased by 86 000 000 EEK and the conversion of Q Capital's subordinated loan was completed. As a result also the requirement from the bond issue terms on 30% equity level is fulfilled. Q Vara discloses its consolidated 6 month financial report according to the bond issue terms by July 31, 2008. Additional information: Meelis Šokman Chairman of the management board AS Q Vara Phone: +372 668 1600