REVAL HOTELLIGRUPP

ANNOUNCEMENT



LINSTOW INTERNATIONAL WILL ACQUIRE MAJORITY HOLDING



The council of one of the largest Norwegian real estate company 

Linstow International decided on 26.07.2000 to make on offering to 

Baltic Republics Fund (major shareholder of Reval Hotelligrupp) to 

sell its 44% holding in Reval Hotelligrupp. As of today Linstow 

International owns ca 8% holding in Reval Hotelligrupp, thus after 

the transaction Linstow International will become the majority 

shareholder of Reval Hotelligrupp. 



After conclusion of share purchase agreement with Baltic Republics 

Fund, Linstow will make a take-over bid to small shareholders of 

Reval Hotelligrupp in accordance with the Rules and Regulations of 

Tallinn Stock Exchange.



After acquisition of majority holding in Reval, Linstow intends to 

launch extensive co-operation programs with Reval Hotelligrupp to 

develop a hotel chain in the Baltic countries. As the first step 

Reval Hotelligrupp today also made a pre-opening management and co-

operation agreement with JSC Hotel Latvija, the owner of the largest 

Latvian hotel Latvija. JSC Hotel Latvija is owned by Linstow's 

subsidiary Linstow International, which is responsible for 

coordinating the company's activities in the Baltic countries.



According to the agreement Reval Hotelligrupp will consult the owners 

of Latvija hotel in respect of completion of renovation works. Reval 

Hotelligrupp will also develop the hotel's detailed product, sales 

and marketing concepts and begin the sale of hotel services and 

personnel selection simultaneously with the renovation works. Latvija 

hotel will be re-opened for guests in May 2001 under Reval Hotel 

Latvija name. The parties have agreed to commence negotiations for 

conclusion of contract for management of Latvija hotel.



The 26-storey Latvija hotel is one of the tallest buildings in Riga. 

Latvija is located in the heart of Riga, on the corner of main 

business and shopping streets Brivibas and Elizabetes. Hotel Latvija 

will have altogether 382 rooms after reopening. The hotel is focused 

on servicing business, conference and holiday travelers, thus 

being Riga's largest first class hotel, with wide range of additional 

services. According to preliminary plans JSC Hotel Latvija intends to 

invest USD 25 mln (EEK 425 mln) in renovation of hotel Latvija.



The agreement between Linstow and Baltic Republics Fund is scheduled 

to be signed within 10 days. Reval Hotelligrupp has applied for 

suspension of trade in its shares on Tallinn Stock Exchange during 

the mentioned time period. Reval will inform the public immediately 

via Exchange information system of agreement in substantial terms and 

conditions of the transaction.





Tarmo Sumberg

Supervisory Board chairman

+372 62 74 444