On 4 August 2008 AS Tallinna Vesi submitted a proposal to AS Maardu Vesi for operating the infrastructure of the public water supply and sewerage system. The contract is to be approved by Maardu City Council, which shall convene for a session on 5 August. When the operating contract comes into force, AS Tallinna Vesi shall help AS Maardu Vesi to finance the self-financing part required within the European Union Assistance Project during the period 2009-2012 with approximately 20 million kroons annually. The financing commitment of AS Tallinna Vesi is up to a total of 80 million kroons over the period. The company shall get the investment back through the capital component to be included in the tariff within 20 years. On the basis of the cooperation of the companies and the subsidies of the European Union the problems regarding the water quality in Maardu shall be solved in the forthcoming years and in a longer perspective Maardu shall be supplied with drinking water from Ülemiste Water Treatment Plant. Administrating the infrastructure of AS Maardu Vesi enables AS Tallinna Vesi to increase its customer portfolio and to grow turnover. In addition to the required self-financing AS Tallinna Vesi shall provide the customers of AS Maardu Vesi with a modern service of operating the assets with a good-quality customer service. The operating contract has been planned for the duration of 30 years; the parties have come to an agreement regarding the terms and conditions of the contract as well as regarding the securities. The contract shall enter into force as of the moment of signing. Tallinna Vesi shall start to operate the assets and provide full service at the latest from 1 January 2009 after the preparation period during which the assets are taken over. AS Maardu Vesi shall still remain the owner of all assets. AS Maardu Vesi is a company in private ownership, established in 2001, the main activities of which include the provision of the services of water supply and wastewater discharge as well as the performance of sanitary works. The main operating area is the city of Maardu. In 2007 the turnover of AS Maardu Vesi was more than 20 million kroons. There area about 20 000 residents living in the operating area of AS Maardu Vesi. AS Tallinna Vesi is the largest water utility in Estonia providing drinking water and wastewater disposal services to approximately one third of the people of Estonia. AS Tallinna Vesi shares are listed on the main list of the Tallinn Stock Exchange. Additional information: Reigo Marosov Head of Communication AS Tallinna Vesi Ädala 10, Tallinn 10614, Estonia Phone. +372 6262 209 Fax +372 6262 300 Mob. +372 5690 5373 reigo.marosov@tvesi.ee www.tallinnavesi.ee