AS Tallinna Vesi's sales in 4th quarter of 2011 are 4.9% higher due to increased sales volumes

AS Tallinna Vesi’s total sales was 13.1 million euros in the 4th quarter of
2011 an 4.9% increase compared to the same period of 2010 due to increased
sales volumes in Tallinn and sales to surrounding municipalities . As result of
excellent operational performance and related efficiencies the gross profit
increased by 5.1% in the 4th quarter of 2011 and the underlying operating
profit increased by 5.9%. “I am delighted to say that in 2011 our operational
and customer service performance was the best ever, especially the increase of
water quality at customer’s property to 99.66%,” said Ian Plenderleith

Total operating profit increased by 13.4% in 4th quarter of 2011 compared to
the same period of 2010 as result of completion of considerable proportion of
the construction program and different timing of constructions throughout the
quarters. Still the profit before taxes decreased by 3.1% in the 4th quarter of
2011, being impacted by non-cash negative movement in fair value of financial
instruments.

The total sales of 12 month of 2011 increased by 3.1% compared to 2010 to 51.2
million euros. Profit before taxes increased by 3.5% to 25.8 million euros.
Year on year 5.1 million euros increase in net profit to 21.5 million euros was
primarily the result of lower income tax on dividends paid in 2011 compared to
2010. The real return on invested capital is 6.2% over the privatization
contract period.

The Company invested 16.5 million euros to the sustainability and improvements
of the assets. The most important construction was the additional treatment
stage to the waste water treatment plant that contributes considerably to the
purer environment.

“The Company’s financial, operational and environmental performance was
excellent in 2011”, said Plenderleith. “The customers have considerably
benefitted from the increase in service standards that continued also in 2011.”

The Company was awarded the Best Investor relations on the Tallinn Stock
Exchange and second place on all the Baltic Stock Exchanges by Nasdaq OMX. In
addition the Company’s investors web-page was highlighted amongst the equal top
five and the Annual Accounts were awarded the second place on all the Baltic
Stock Exchanges. “It is extremely satisfying that the local and international
investors and market participants recognise the open communication and hard
work we do to present our company in the most accurate and transparent way
possible. We would like to thank all of our partners for their efforts in
working with AS Tallinna Vesi that have helped us to win these awards,” said
Plenderleith.

With regards the matters of economic and quality regulation the Company has
continuously stated its belief in fully transparent regulation and its
willingness to enter into meaningful dialogue that takes into account the
privatization contract signed in 2001.


Siiri Lahe
Chief Financial Officer
Member of the Management Board
Tel: 62 62 262