PRO KAPITAL

ANNOUNCEMENT



ABOUT RESTRUCTURING OF THE COMPANY



In accordance with the Tallinn City Court Commercial Registry entry 

of 08.06, the business name of AS Pro Kapital was changed to AS 

Pro Kapital Grupp (Pro Kapital Group Ltd.). 



The company's business name was changed due to restructuring of the 

group in order to improve its management, and also due to acquisition 

of controlling holding in Italian-registered company Domina Hotel e 

Comproprieta Alberghiere S.p.A. 



According to the new structure, Pro Kapital Grupp is a stock exchange 

listed holding company, which manages and supervises the activities 

of subsidiary concerns in Estonia (Pro Kapital Eesti), Latvia (Pro 

Kapital Latvia), Lithuania (Pro Kapital Vilnius Real Estate) and 

Italy (Domina Hotel e Comproprieta Alberghiere). 



The aim of Pro Kapital Grupp is to co-ordinate the compilation of, 

and supervise the execution of development strategies of its subsidiary 

concerns, and to organize the concern's financial management and 

reporting to Tallinn Stock Exchange. The concern's economic operations, 

i.e. acquisition, development and sale of new real estate projects, are 

divided between four sub-concerns based on their geographic location. 



On 27.07.2000 the Supervisory Board of AS Pro Kapital Grupp held its 

first meeting. The Supervisory Board elected the company's core 

shareholder Ernesto Preatoni its chairman. 



The Supervisory Board also appointed the Management Board to the 

company, consisting of Luca Milani (Domina Hotel e Comproprieta 

Alberghiere, Management Board member), Aivar Pihlak (legal advisor 

to companies controlled or represented by Ernesto Preatoni) and 

Ilona Saari (financial advisor). 



Fields of responsibility of Pro Kapital Grupp (PKG) Management Board 

members: Luca Milani co-ordinates PKG's general strategies, focusing 

on PKG's activities outside of Baltic countries and new sub-concern 

in Italy; Ilona Saari co-ordinates PKG's financial management and 

reporting; Aivar Pihlak is PKG's legal advisor and proxy.



PKG's sub-concerns' management:

Pro Kapital Eesti - general manager and CEO Andrus Laurits;

Pro Kapital Latvia - general manager and CEO Alessandro Gelli;

PK Vilnius - CEO Roberto Rangoni Preatoni; 

Domina Hotel e Comproprieta Alberghiere - president Giuliano Urbani





Ilona Saari

Management Board member

+372 61 44 920