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Eastern European Markets
PRESS RELEASE
MAY 2, 2005

SRV Group and Finnish investors to cooperate in the Baltic and Russian real estate market

Conventum Corporate Finance Limited has gathered a group of Finnish high net-worth investors who have founded Vicus Limited, an investment company that specializes in the Baltic and Russian real estate market. Vicus is domiciled in Finland and operates in close cooperation with SRV Group, one of Finland's largest construction and project management groups with annual revenue of EUR 400 million.

Vicus aims at investing more than EUR 100 million into real estates within next three years. The shareholders of Vicus will invest about EUR 30 million in the company; the rest of the real estate investments will be financed with bank loans.

Vicus will become a long-term investor in retail, logistics warehouse and industrial property located in the Baltic States and Russia. Furthermore, Vicus will engage in real estate development. This opens possibilities for short-term investments in, for example, residential and office property construction projects, and purchases of land plots to be further developed into long-term property investments.

According to the cooperation agreement signed today, SRV International Ltd, a subsidiary to SRV Group Plc, will be responsible for the search of lessees, site development, and construction project management in the joint projects of SRV and Vicus. SRV International is the leading project management contractor in the Baltic States and one of the leading actors in Russia. Majority of SRV International's clientele are international companies that are expanding their operations in the Baltic States and Russia. SRV International's net sales amounted to EUR 34 million in 2004 and are expected to increase significantly in next few years.

"We are very satisfied to get a reliable and well-established Finnish partner. Together with Vicus we are able to offer our clientele more comprehensive set of services, including acquisition of the sites, management and financing of the building projects and owner partnership of the completed property" says Risto Hiekka, Managing Director of SRV International. "SRV wants to further strengthen its presence in the Baltic States and Russia. Therefore we participate in this project also as one of the shareholders of Vicus Limited" continues Ilpo Kokkila, Chairman of SRV Group.

"Vicus's cooperation model provides a unique opportunity to build a diversified real estate portfolio not only in the Baltic States but also in Russia" states Juha Mikkonen, initiator of Vicus who will also serve as the company's acting Managing Director. "I believe that together with SRV, we can create a success story in the Finnish real estate investment market" continues Eero Makkonen, former Managing Director of Skanska Finland (1994–2001) who serves as an adviser to Vicus.

Further information:
Juha Mikkonen, Managing Director, Conventum Corporate Finance, tel. +358 50 523 5833
Eero Makkonen, Chairman of the Board, Vicus, tel. +358 400 684 064
Risto Hiekka, Managing Director, SRV International, tel. +358 400 493 688
Ilpo Kokkila, Chairman of the Board, SRV Group, tel. +358 400 485 555

www.srv.fi


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