A subsidiary of Arco Investeeringute AS, Arco Invest EOOD and construction company GBS-Sofia Jsc. (Glavbolgarstroy), concluded a construction contract for the construction of second stage of the project “Madrid”. Second stage includes the interior of the building. The value of the contract is 48,5 mln kroons (3,1 mln euros). The project was acquired on 02.08.2007 with construction right already in place. The land plot is located in the city center and includes in total 24 700 m2 of residential and commercial spaces. The project is completed in the autumn in 2009. Please, find the visuals of the project attached to this announcement. Arco Vara is a leading real estate developer in the Baltic's, undergoing a CEE expansion with presence established in Ukraine, Bulgaria and Romania. The operations involve real estate development, brokerage, construction and investment management arm. The company is located in 30 cities and has in total 649 employees. According to 9 months results 2007 consolidated revenues were 687 mln kroons (44 mln euros), net profit 264 mln kroons (17 mln euros) and assets 3 536 mln kroons (226 mln euros). Arco Vara is listed on Tallinn Stock Exchange. Additional information: Heigo Metsoja IRO +372 6144 654 heigo.metsoja@arcovara.ee http://www.arcorealestate.com