A-Selver

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Corporate Profile
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LHV The Partnership

• Twelve partners dedicated to excellence in our
  business
• Clear Baltic focus
• Five business lines

Corporate Finance
Asset Management
Venture Capital
Investment Services
Structured Finance
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Operating Principles

• Long-Term Commitment
• In the long-term prosperity of our clients lies
  the key to our own success.
• Dedication to Excellence
• In-depth knowledge about our clients businesses
  and pursuits paves the way to long-term
  relationships.
• Reputation
• The impeccable reputation of LHV, and that of
  our people, is the cornerstone of our
  endeavours. Losing our reputation would equal
  losing our business.
• People and Organisation
• Our main assets are our people.

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Corporate Finance

• Highly skilled and motivated team of 6 partners
  and 2 analysts
• Personal experience from major Baltic
  transactions
• Extensive contacts among Baltic industrial and
  opinion leaders
• Providing a wide range of tailor-made solutions
  in the following areas
• Mergers Acquisitions
• Strategic and Financial Advisory
• Capital Raising

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Credentials Strategic Advisory
Ministry of Finance
March 2000 Drafting of the business plan and
financing alternatives for the 100m Estonian
Gene Heredity Project.
December 2000 Strategic advisory on involvement
of private sector financing into Estonias health
care sector.
March 2000 Strategic advisory on formulating the
business and revenue models for the transport and
logistics sector of Estonia.
May 1999 Preparation of the trade sale of 49.5
of AS Norma to Autoliv AB of Sweden.
April 1999 Strategic advisory on the expansion of
Selver supermarket chain.
2001 Advisor to YIT in the tender offer to
minority shareholders of FKSM.
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Credentials Financial Advisory
Pärnu Hospital
Ministry of Social Affairs
2001 Drafting of financial model and business
plan for the new building of Pärnu Hospital.
2001 Strategic advisory on healthcare reform for
the Ministry of Social Affairs.
2001 Drafting of the financial model for the new
building of Tartu University Hospital.
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Credentials MA Transactions Buy Side
December 2000 Advisor to International Water in
the privatisation of 50.4 of AS Tallinna
Vesi. EEK 1,338,000,000
December 2000 Advisor to LNT, the largest private
TV station in Latvia, in their acquisition of
100 of AS ESTV, the operator of TV1 in Estonia.
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Credentials MA Transactions Sell Side
City of Tallinn
March 2000 Advisor to AS Eesti Elektrivõrkude
Ehitus and its majority shareholder on the trade
sale of 59 of the company to PVO-Palvelut OY
(now Empower OY) of Finland.
2001 Advisor to the City of Tallinn in granting a
30 year lease of the district heating operations
of the Tallinn District Heating Company.
1999 Advisor to the minority shareholders of AS
Fanaal, in the strategic trade sale initiated by
the majority shareholders.
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Credentials MA Transactions Sell Side
2001
2000 Advisor to AS Eesti Buss in the trade sale
(51) of its subsidiary Nordeka.
Advisor to AS FKSM and its majority shareholders
in the trade sale of 53.76 of FKSM to YIT
Construction Ltd. of Finland.
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Credentials Capital Raising
EGeen International Inc.
2001
Domestic capital raising for the commercial arm
of the Estonian Genome Project.
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Asset Management

• Philosophy
• The application of a highly disciplined and
  clearly defined approach to investing and
  portfolio construction.
• LHV Asset Management believes in the benefits of
  global investing and portfolio diversification.
• Team
• 2 partners
• Investment experience since the inception of the
  Baltic financial markets
• Clients
• LHV Asset Management can best add value to
  clients with financial assets starting from EEK
  0.5m (30,000).

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Asset Management Portfolio Management

• Prepares investment strategy to meet the needs of
  each individual client
• Global asset allocation is the starting point of
  the investment process
• that is realised through a range of products
• International equity funds
• Private equity
• International equities and bonds
• The discipline of putting chosen strategies into
  practice is as vital as the choice of the
  strategy itself, therefore we emphasize the
  importance of
• Specific portfolio targets and risk control
• Benchmarking
• Reporting

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Asset Management Investment Funds

• Pension Funds
• Voluntary Pension Fund (3rd pillar pension fund)
  aims to bring additional earnings to LHVs
  investors after retirement.
• Mandatory Pension Funds (2nd pillar pension fund)
  LHV Asset Management is currently applying
  licenses for two mandatory pension funds
• Investing only in fixed income securities
• Balanced fund - 50 equities and 50 fixed income
• Money Market Fund A
• Investing in Euro securities offers returns that
  are comparable to EEK yields.
• Lowest risk, highest liquidity instrument on the
  Estonian market
• Third party investment funds

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Venture Capital www.lhvventures.com

• Early stage and expansion phase funding
• Hands-on participation in strategy and operations
• Focus on IT and emerging sectors

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Venture Capital Portfolio Companies
January 2000
February 2000 E-solutions provider Baltics
March 2000 ISP and telephony provider based on
broadband technology Estonia
April 2000 Amphora groupware producer Estonia
Internet enabled recruitment and HR development
Central and Eastern Europe
April 2000 System integration and software
development Latvia
April 2000 Outsourcing of IT servicesEstonia
October 2000 SMS messaging and mobile
service Baltics
September 1999 Online Auctions Network Baltics
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Investment Services www.lhv.ee

• LHV Investment Services makes investing easy and
  generally reachable.
• LHV Investment Services enables diversification
  and capital growth through global investing.
• LHV Investment Services lowers barriers to
  investing with low commissions and no minimum
  balances.

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Investment Services www.lhv.ee

• Services include
• Online trading with stocks quoted on Tallinn
  Stock Exchange (TSE)
• Online trading with stocks quoted on NYSE,
  Nasdaq, Amex
• LHV is the first to intermediate options noted in
  the US markets via Internet. As our newest
  service, we also offer Estonian options via
  Internet.
• Kasvukonto - mathematically optimized investment
  product for the new generation.
• Personal contact through Customer Support and
  personalised e-mails.
• Learning tools
• Most popular financial discussion forums
• Great learning tools featuring investment school
  and virtual portfolios
• Daily newsletters, market overviews and stock
  features.

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Structured Finance

• Structured Finance is involved in in-depth
  analysis and engineering of financial products.
• Services include
• Managing LHV Arbitrage- the first hedge fund-like
  investment vehicle in the Baltic States.
• Analyzing clients currency and interest rate
  risks providing customized solutions in covering
  risks dynamically.
• Providing liquidity to LHV web based equity
  option trading. Structured finance department is
  the most active market maker in the Baltic equity
  options.

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LHV Contacts

• Corporate Finance
• Tallinn Office ph 372 6 110 300 fax 372 6
  110 310
• Riga Office ph 371 7 814 256 fax [phone]
  249
• Asset Management ph 372 6 108 453 fax 372 6
  110 310
• Venture Capital ph 372 6 110 305 fax 372 6
  110 310
• Investment Services ph 372 6 108 400 fax 372
  6 108 402
• Structured Finance ph 372 6 108 446 fax 372
  6 108 402
• Offices in Tallinn Office in Riga
• Roosikrantsi 2 Maakri 19/21 Kalku iela 10
• Tallinn, 10119 Tallinn,10145 Riga, 1050