Estonia, Financial Services, Real Estate

The authorized maximum number of shares planned in the amount of 9,528 million units. As of the date of this announcement or October 8, 2008, Arco Vara holds 450,000 own shares.

General Meeting of Shareholders of Arco Vara on May 13, 2008, authorized Arco Vara to buy back its own shares in five years period, provided that such a buy-back shall not exceed 10% of the aggregate value of issued nominal share capital of Arco Vara.

The aggregate consideration under the new program will be 10.0 million Estonian kroons, and maximum of 1,800 million shares may be acquired. The program will start on 8 October 2008 and will end on 31 December 2008.

The purpose of the program is to reduce the capital of Arco Vara or to use the acquired shares for planned employee share option scheme as the Management Board believes current share price level provides a favourable opportunity for this purpose.

The share buyback program is conducted in compliance with the provisions of the European Commission's regulation No. 2273/2003 of 22 December 2003, stating the exemptions for share buyback programs.

Arco Vara has appointed SEB Pank as the key manager of the program to buy the shares back on behalf of Arco Vara under separate agreement. SEB Pank will be independent on its trading decisions irrespective of and without influence from Arco Vara as to the timing of the purchases as well as carry out the buyback according to the regulations and within the framework of the program.