Concerning reorganization of the public company Rytų skirstomieji tinklai and public company “VST”

Please be informed that the draft of the terms of reorganization of the public
company Rytų skirstomieji tinklai and public company “VST” was considered and
approved in the board meetings of the public company Rytų skirstomieji tinklai
and public company “VST” held on 6 September 2010. 
Reorganization is carried out by merger. 
Reorganized companies: public company Rytų skirstomieji tinklai (code
110870890, legal form - public company, address of the registered office: P.
Lukšio g. 5B, LT-08221, Vilnius, the Republic of Lithuania, data collected and
kept with the Register of Legal Entities of the Republic of Lithuania, VAT
payer's code LT108708917, share issue (ISIN) code LT0000126385; hereinafter -
RST) and public company “VST” (code 110870748, legal form - public company,
address of the registered office: J. Jasinskio g. 16C, LT-01112, Vilnius, the
Republic of Lithuania, data collected and kept with the Register of Legal
Entities of the Republic of Lithuania, VAT payer's code LT108707412, share
issue (ISIN) code LT0000126377; hereinafter - VST), which are intended to be
merged and on which basis after reorganization a new company is intended to be
formed - AB LESTO (legal entity's code will be granted under procedure defined
by legal acts of the Republic of Lithuania upon registration of AB LESTO with
the Register of Legal Entities, legal form - public company, future registered
address: Žvejų g. 14, LT-09310, Vilnius, the Republic of Lithuania, share issue
(ISIN) code will be granted upon registration of the issue of LESTO shares with
the Central Securities Depository of Lithuania; hereinafter - LESTO). 
The Companies ceasing to exist after reorganization: RST and VST. 
Decision on approval of reorganization of RST and VST, approval of
reorganization terms thereof and other related issues shall be adopted by the
general meetings of shareholders of RST and VST under procedure defined by
legal acts of the Republic of Lithuania. After reorganization, a new company
LESTO will be incorporated and commence its activities. LESTO, after its
registration with the Register of Legal Entities, will immediately apply under
procedure defined by legal acts for issue of the electricity distribution
licence and public electricity supplier's licence (the “Licences”). LESTO will
take over all long-term and current assets of RST and VST, as well as long-term
and current financial and other liabilities, amounts receivable and amounts
payable under agreements concluded by RST and VST, or obligations arising on
any other grounds. LESTO will also take over all other rights and obligations
of RST and VST under transactions and obligations arising on any other grounds
(including the rights and obligations under collective agreements and
employment contracts concluded, funds of RST and VST in bank accounts,
agreements with new and existing electricity consumers, electricity generators,
independent suppliers and providers of goods, services and/or works, as well as
rights and obligations arising from other documents concluded by RST and VST
(technical conditions, design conditions, etc.), except for the rights and
obligations of RST and VST which pursuant to imperative provisions of law of
the Republic of Lithuania are prohibited or may not be assigned to other person
during reorganization. LESTO will also take over all the rights to the
licences, permits and certificates used by RST and VST, if legal acts provide
for the possibility of such assignment of rights (hereinafter the
abovementioned assets, rights and obligations that are taken over by LESTO are
referred to as the “Transferred assets, rights and obligations”). The
Transferred assets, rights and obligations and all the transactions of RST and
VST will be included in the accounting of LESTO until the moment when LESTO
acquires the Licences and these Licences become effective (the “Date of
Transfer”). When the date of entry of Licences into effect becomes known, as at
the Date of Transfer (i.e. on a respective day until the date of entry of
Licenses into effect) separate deeds of transfer and acceptance of the
Transferred assets, rights and obligations will be signed between LESTO and
RST, and LESTO and VST. 
The reorganization terms, the draft articles of association of LESTO - the
company to be active after reorganization, sets of financial accounts and
annual reports of RST and VST over the last 3 financial years, interim
financial statements of RST and VST executed as of 30 June 2010, report on
assessment of reorganization terms and reports of RST and VST boards on the
intended reorganization, will be available from 10 September 2010 to 26
September 2010 (inclusive) at the registered office of RST (P. Lukšio g. 5B,
Vilnius, the Republic of Lithuania) and registered office of VST (J. Jasinskio
g. 16C, Vilnius, the Republic of Lithuania), on working days from 7.30 till
11.30 and from 12.15 till 16.30 (on Fridays till 15.15), and in the period from
27 September 2010 until the general meetings of shareholders of RST and VST, in
which approval of the terms of reorganization of RST and VST and related issues
will be considered and notification about which will be released according to
legal requirements of the Republic of Lithuania, will be available in the new
premises of RST and VST (in which LESTO will also run its activities after
reorganization), Žvejų g. 14, Vilnius, the Republic of Lithuania, on working
days from 7.30 till 11.30 and from 12.15 till 16.30 (on Fridays till 15.15). 
The said information and documents will also be publicized under procedure
prescribed for announcement of regulated information and will be made publicly
available in the companies' websites www.rst.lt and www.vst.lt as well as in
the website of AB NASDAQ OMX Vilnius Stock Exchange
http://www.nasdaqomxbaltic.com and in the Central Regulated Data Base
www.crib.lt 

Rimantas Vaitkus
Chief Executive Officer

Person for contacts: 
Giedrė Vinickienė
T.a. Manager Marketing and Public Relations
Phone (8~5) 278 1221