Corporate Profile

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

Operating Principles

Long-Term CommitmentIn the long-term prosperity of our clients lies the key to our own success.

Dedication to ExcellenceIn-depth knowledge about our clients’ businesses and pursuits paves the

way to long-term relationships.

ReputationThe 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.

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

Credentials – Strategic Advisory

Ministry of FinanceMarch 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 Estonia’s 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.

Credentials – Financial Advisory

Pärnu Hospital

2001

Drafting of financial model and business plan for the new building of Pärnu Hospital.

Ministry of Social Affairs

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.

Credentials – M&A 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.

Credentials – M&A 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.

Credentials – M&A Transactions – Sell Side

2001

Advisor to AS FKSM and its majority shareholders in the trade sale of 53.76% of FKSM to YIT Construction Ltd. of Finland.

2000

Advisor to AS Eesti Buss in the trade sale (51%) of its subsidiary Nordeka.

Credentials – Capital Raising

2001

EGeen International Inc.

Domestic capital raising for the commercial arm of the Estonian Genome Project.

Asset Management

PhilosophyThe 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.

Team2 partners

Investment experience since the inception of the Baltic financial markets

ClientsLHV Asset Management can best add value to clients with financial assets starting from EEK 0.5m ($30,000).

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

Asset Management – Investment Funds

Pension Funds:Voluntary Pension Fund (3rd pillar pension fund)– aims to bring additional earnings to LHV’s 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 securitiesBalanced 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

Venture Capital www.lhvventures.com

Early stage and expansion phase funding

Hands-on participation in strategy and operations

Focus on IT and emerging sectors

Venture Capital – Portfolio Companies

January 2000

Internet enabled recruitment and HR development

Central and EasternEurope

                                                  

February 2000

E-solutions provider

Baltics

                                                     

March 2000

ISP and telephony provider based on broadband technology

Estonia

                                                                                      

April 2000

“Amphora” groupware producer

Estonia

                                                

April 2000

System integration and software development

Latvia

                                                           

April 2000

Outsourcing of IT services

Estonia

                                                         

October 2000

SMS messaging and mobile service

Baltics

                                        

September 1999

Online Auctions Network

Baltics

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.

Investment Services www.lhv.eeServices include:

Online trading with stocks quoted on Tallinn Stock Exchange (TSE)Online trading with stocks quoted on NYSE, Nasdaq, AmexLHV 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 toolsMost popular financial discussion forumsGreat learning tools featuring investment school and virtual portfolios Daily newsletters, market overviews and stock features.

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.

LHV Contacts

Corporate Finance:Tallinn Office ph: +372 6 110 300 fax: +372 6 110 310

Riga Office ph: +371 7 814 256 fax: +371 7 814 249

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