City Service SE — Major Shareholding Notification 2010

Mar 17, 2010

EAST CAPITAL

KUNGSGATAN 33

BOX 1364

SE-111 93 STOCKHOLM

Middle Office

Nina Jonsson

PHONE +46 8 505 88 657

FAX +46 8 505 886 01

Nina.jonsson@eastcapital.com

www.eastcapital.com

TO City Service

FAX +370 5 239 48 48

DATE 12th March 2010

REF Disclosure about acquisition of a block of shares

PAGES 3 including cover sheet

THE INFORMATION IN THIS MESSAGE IS INTENDED ONLY FOR THE CONFIDENTIAL USE OF THE ABOVE NAMED RECIPIENT. If the reader of this message is not the intended recipient or person responsible delivering it to the intended recipient you are hereby notified that you have received this communication in error, and that any review, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this in error please notify the sender immediately by telephone at the number set forth above, and destroy this facsimile message. Thank you.

MESSAGE

Dear Sir/Madam,

Please find enclosed a Disclosure about acquisition of a block of shares, due to the purchase of City Service AB shares, made East Capital Asset Management AB on behalf of East Capital Eastern European Fund, East Capital Baltic Fund, East Capital Lux Eastern European Fund, East Capital Lux Convergence Eastern European Fund.

Original copy will be forwarded to you by courier.

Yours Faithfully,

Nina Jonsson

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ANNEX to the Rule on the Submission of the Notification on the Acquisition or the Disposal of a Block of Shares

NOTIFICATION OF A GROUP ON THE DISPOSAL OF A BLOCK OF SHARES*

1. City Service, Code: 123905633 Address: Konstitucijos ave. 7, 28th floor, LT-09308, Vilnius, Lithuania.
   (name, code, registered address, home office address, State of the issuers)

2. East Capital Asset Management AB (on behalf of East Capital Eastern European Fund, East Capital Baltic Fund, East Capital Lux Eastern European Fund, East Capital Lux Convergence Eastern European Fund). Registration nr: 556564-5370. Address: Box 1364, 111 93 Stockholm, Sweden.
   (name, last name, personal code, address, State, tel. No. of the person or the name, code, registered office, State of the company who has acquired or disposed of a block of shares)

3. The reasons for crossing the threshold (specify the relevant reason)
   ☐ Acquisition of a block of shares
   (acquisition or a disposal of voting rights (underline the necessary and indicate the specific reason))
   ☐ securities that subject to a formal agreement upon a request of the owner thereof grants the right to acquire in the future the shares already issued by the issuer (underline the necessary and indicate the specific reason).
   ☐

(the triggering event (indicate the specific event)

1. The date of which the threshold was crossed (specify): 2010-03-10

2. Threshold that was crossed or reached (specify): Crossing of the 5% limit – from 4.72% to 9.60% of the votes.

3. Votes held by the person: 9.60%

Type, class of shares, ISIN code	Number of shares and votes held previous to the acquisition or disposal of the block of shares**		The number of shares and voting rights held at the date of crossing the threshold
	Number of shares (units)	Number of votes (%)	Number of shares (units)	Number of voting rights (units)		Number of voting rights (%)
			Directly	Directly	Indirectly	Directly	Indirectly
1	2	3	4	5	6	7	8
City Service LT0000127375	1 492 034	4.72%	3 035 009	3 035 009	-	9.60%	-
		Total:	3 035 009	3 035 009		9.60%

• Delete the unnecessary
  ** Total votes and shares held (i.e. held directly and indirectly).

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1. Data on the securities that subject to a formal agreement upon a request of the owner thereof grants the right to acquire in the future the shares already issued by the issuer.

Type and class of securities	Date of expiry of the securities	Number of shares and votes to be acquired through the exercise of the rights attached to the securities	The data of conversion and (or) the exercise of the rights granted by the securities	The number of voting rights held after the exercise of the votes granted by the securities
				Number of voting rights (units)	Number of voting rights (%)
1	2	3	4	5	6
			Total:

1. Total number of voting rights held by the notifying person (item 6+item 7);

TOTAL	Number of voting rights (units)	Number of voting rights (%)
	3 035 009	9.60%

9.

(the chain of controlled entities through which the voting rights and (or) securities that subject to a formal agreement and upon an initiative of the owner thereof grants the right to acquire the shares issued by the issuer are held (if applicable)

1. Disclosure is made based on the East Capital group’s total holding. (additional information)

2. The right granted to the proxy ___ to vote at his own discretion in respect
   (name and last name of the proxy)

of __ expires on __.
(voting rights, units, %) (date)

1. By signing the present information notification I hereby confirm that the information presented therein is complete and accurate, and that I have familiarised myself with the sanctions imposed for the provision of misleading information provided for in the Law on Securities and the Code of Administrative Violations of Law of the Republic of Lithuania.

Sandra Frimann-Clausen on behalf of Mia Jurke, Managing Director East Capital Asset Management AB, March 12, 2010:

(the signature of the person notifying of the acquisition or disposal of a block of shares (name, last name and the signature of the Manager of the Company), the date of filling in the notification

*** Where for the purpose of performance of the obligation of the group of persons to notify the acquisition or the disposal of a block of shares the person appointed by the group of persons shall sign the notification and indicate that the notification is being signed on behalf of the entire group of persons.