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INTENDED CONCENTRATION WILL FACILITATE THE ENVISAGED PROJECTS

31 08 2006

Having examined the notifications on intended concentration deals the Competition Council passed the appropriate decisions.

1. The Competition Council authorised the concentration deal, as per notification by UAB Eika and AB Ogmios centras intended through the establishment, in equal parts, of UAB Eika - Ogmios centras. The deal was authorised by the competition authority having concluded that the notified concentration will not create or strengthen any dominant position in the market, not will it lessen, to any significant extent, competition in the relevant markets for the construction of residential or commercial real estate and the lease of commercial realty.

As indicated in the notification the new entity UAB Eika – Ogmios centras is being established with a purpose to implement a trading-commercial-logistics project in Vilnius. The concentration notification notes that UAB Eika – Ogmios centras is being incorporated seeking to segregate the jointly implemented real estate development project from those current or future held individually by both UAB Eika and AB Ogmios centras. Upon the completion of the joint project the newly incorporated entity will be liquidated.

2. In its meeting having examined the application as of 03-08-2006 filed by AB Vilsota to authorise the concentration deal by acquiring a 50 % interest in UAB Park Residence and acquiring a joint control with UAB Middle Europe Investments Baltija the Competition Council resolved to authorise the concentration deal as the transaction will not create or strengthen dominant position or will result in a significant weakening of competition in the relevant markets. The notification submitted with the competition authority defines the purpose of the concentration as the need to draw on the expertise of UAB Vilsota in the execution of real estate projects. In the opinion of the participants of the intended concentration, the acquisition of the joint control with UAB Middle Europe Investments Baltija is expected to ensure the success of the project implemented by UAB Park Residence while the cooperation will be limited to the activity related to the joint project.

Competition Council Spokesperson