Market announcement

Title

2009 III QUARTER AND 9 MONTHS INTERIM REPORT (UNAUDITED)

Message

Directors' report                                                               

Financial review                                                                

Margins                                                                         
Nordecon International Group ended the first nine months of 2009 with a gross   
profit of 165.2 million kroons (10.6 million euros), 47% down from the 312.0    
million kroons (19.9 million euros) earned in the first nine months of 2008.    
The decrease results largely from a decline in the profitability of construction
contracts across all segments. In ordinary circumstances, lower than average    
profitability in the first quarter results from seasonal factors that impact    
mainly the road construction business and are counteracted in the second and    
third quarters. This year, however, they have been accompanied by exceptionally 
weak demand in the buildings construction sector, which has triggered fierce    
competition and, accordingly, a steep decrease in margins.
                      
Consolidated operating profit for the first nine months was 44.6 million kroons 
(2.9 million euros). The generation of a positive operating result despite a    
decrease in gross profit is mainly attributable to a decisive reduction of      
administrative expenses. Compared with a year ago, administrative expenses have 
decreased by 41.5 million kroons (2.7 million euros), i.e. 30%. At period-end,  
the ratio of administrative expenses to revenue stood at 4.9% (9M 2008: 4.7%),  
which corresponds to the 5% limit set by management. The Group remains committed
to its stated aim of reducing the cost base in 2009-2010 by up to 30% compared  
with 2007-2008 and is prepared to act resolutely to achieve this.
               
In the first nine months, the Group earned a net profit of 46.7 million kroons  
(3.0 million euros). Net profit attributable to owners of the parent amounted to
65.4 million kroons (4.2 million euros) while the loss attributable to          
non-controlling interests equalled 18.7 million kroons (1.2 million euros).     

The profitability ratios monitored by the Group's management are following the  
same trends that emerged in the last quarter of 2008 as a result of adverse     
changes in the operating environment. The Group's margins have dropped (in all  
markets) year-over-year primarily on account of a steep decline in demand. The  
main   sector-specific trend has been the increasing excess of construction     
capacities over the number of projects on offer. Low demand that is insufficient
for meeting the business needs of all market players has heightened pressure for
lowering the prices. To remain competitive, the Group was forced to lower the   
gross margin for the first nine months to 8.4%, a notable decrease from the     
10.7% posted for the first nine months of 2008. In the light of the trends      
prevailing in the construction market, the Group will focus on redesigning its  
internal processes (improving the efficiency of purchase of services, cost      
cutting, etc) so as to maintain its gross margin at a level that would   ensure 
that the year will end in an operating profit. At the end of the financial year 
(in the fourth quarter), the Group's management will perform a valuation of the 
Group's assets, which will probably lower consolidated operating profit on a    
non-recurring basis. Management is not going to forecast the extent of any      
potential impairment losses before the valuation results are available.         

Cash flows                                                                      
The Group's operating activities for the first nine months generated a net cash 
inflow of 71.0 million kroons (4.5 million euros), a strong improvement on the  
net outflow of 57.1 million kroons (3.6 million euros) posted for the first     
half-year. In the current market situation, cash receipts occur, as a rule,     
according to settlement terms that are significantly later than the delivery    
dates of the projects. In the reporting year, the Group has completed a number  
of major projects started in previous periods. In addition, receipts are        
influenced by the approaching end of the construction season that is accompanied
by the signature of completion documents. The Group's ability to maintain a     
positive net operating cash flow depends on how well it can adapt to the new    
economic environment (e.g. by extending settlement terms with subcontractors)   
and the extent to which operating costs can be cut.                             

Investing activities for the first nine months of 2009 resulted in a net outflow
of 45.9 million kroons (2.9 million euros) compared with an outflow of 158.6    
million kroons (10.1 million euros) for the first nine months of 2008.          
Acquisitions of investments in subsidiaries, associates and joint ventures      
(including disposals) generated a net outflow of 30.7 million kroons (2.0       
million euros). The corresponding figure for the first nine months of 2008 was a
net outflow of 108.7 million kroons (6.9 million euros).                        

Financing activities generated a net outflow of 79.8 million kroons (5.1 million
euros). The corresponding figure for the first nine months of 2008 was an       
outflow of 35.8 million kroons (2.3 million euros). The structure of financing  
cash flows has changed because the Group has reduced borrowings but is          
continuing the servicing of existing debt. The period's net outflow from        
interest-bearing loans and borrowings (excluding interest expense) was negative 
at 24.2 million kroons (1.5 million euros) against a net inflow of 97.6 million 
kroons (6.2 million euros) in the first nine months of 2008. The remainder of   
financing cash flows was made up of a dividend distribution of 31.9 million     
kroons (2.0 million euros) compared with 104.1 million kroons (6.7 million      
euros) for the first nine months of 2008.                                       

Key financial figures and ratios                                                
--------------------------------------------------------------------------------
| Figure / ratio                 |  9M 2009 |  9M 2008 |   9M 2007 |      2008 |
--------------------------------------------------------------------------------
| Weighted average number of     | 30,756,7 | 30,756,7 | 30,756,72 | 30,756,72 |
| shares *                       |       28 |       28 |         8 |         8 |
--------------------------------------------------------------------------------
| Earnings per share (in kroons) |     2.13 |     5.06 |      6.38 |      4.73 |
--------------------------------------------------------------------------------
| Earnings per share (in euros)  |     0.14 |     0.32 |      0.41 |      0.30 |
--------------------------------------------------------------------------------
| Revenue growth                 |   -32.7% |     9.9% |     50.7% |      3.1% |
--------------------------------------------------------------------------------
| Average number of employees    |    1,110 |    1,267 |     1,113 |     1,232 |
--------------------------------------------------------------------------------
| Revenue per employee (in       |    1,773 |    2,306 |     2,389 |     3,140 |
| thousands of kroons)           |          |          |           |           |
--------------------------------------------------------------------------------
| Revenue per employee (in       |      113 |      147 |       153 |       201 |
| thousands of euros)            |          |          |           |           |
--------------------------------------------------------------------------------
| Personnel expenses to revenue, |    14.2% |    12.4% |     11.2% |     12.7% |
| %                              |          |          |           |           |
--------------------------------------------------------------------------------
| Administrative expenses to     |     4.9% |     4.7% |      4.4% |      4.7% |
| revenue, %                     |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA (in thousands of        |   97,471 |  234,230 |   277,622 |   281,161 |
| kroons)                        |          |          |           |           |
--------------------------------------------------------------------------------
| EBITDA (in thousands of euros) |    6,230 |   14,970 |    17,743 |    17,969 |
--------------------------------------------------------------------------------
| EBITDA margin, %               |     5.0% |     8.0% |     10.4% |      7.3% |
--------------------------------------------------------------------------------
| Gross margin, %                |     8.4% |    10.7% |     13.0% |      9.3% |
--------------------------------------------------------------------------------
| Operating margin, %            |     2.3% |     6.1% |      8.7% |      5.4% |
--------------------------------------------------------------------------------
| Operating margin excluding     |     2.1% |     6.0% |      8.4% |      5.3% |
| gains on asset sales, %        |          |          |           |           |
--------------------------------------------------------------------------------
| Net margin, %                  |     2.4% |     6.3% |      7.9% |      4.4% |
--------------------------------------------------------------------------------
| Return on invested capital, %  |     5.3% |    18.9% |     26.3% |     19.1% |
--------------------------------------------------------------------------------
| Return on assets, %            |     1.9% |     7.7% |     13.4% |      9.1% |
--------------------------------------------------------------------------------
| Return on equity, %            |     5.5% |    21.7% |     35.8% |     20.5% |
--------------------------------------------------------------------------------
| Equity ratio, %                |    36.9% |    35.5% |     32.6% |     36.5% |
--------------------------------------------------------------------------------
| Gearing, %                     |    25.7% |    28.7% |     23.2% |     18.2% |
--------------------------------------------------------------------------------
| Current ratio                  |     1.43 |     1.42 |      1.38 |      1.33 |
--------------------------------------------------------------------------------
|                                |  30 Sept |  30 Sept |   30 Sept |    31 Dec |
|                                |     2009 |     2008 |      2007 |      2008 |
--------------------------------------------------------------------------------
| Order book (in thousands of    | 1,612,16 | 3,042,65 | 3,161,956 | 2,220,748 |
| kroons)                        |        0 |        4 |           |           |
--------------------------------------------------------------------------------
| Order book (in thousands of    |  103,036 |  194,461 |   202,086 |   141,932 |
| euros)                         |          |          |           |           |
--------------------------------------------------------------------------------
* For comparability, the weighted average number of shares is the number of     
shares after the bonus issues.
                                                  
--------------------------------------------------------------------------------
| Earnings per share (EPS) = net       | Operating margin excluding gains on   |
| profit attributable to equity        | asset sales = (operating profit -     |
| holders of the parent / weighted     | gains on sale of property, plant and  |
| average number of shares outstanding | equipment - gains on sale of real     |
| Revenue per employee = revenue /     | estate) / revenue                     |
| average number of employees          | Net margin = net profit for the       |
| Personnel expenses to revenue =      | period / revenue                      |
| personnel expenses / revenue         | Return on invested capital = (profit  |
| Administrative expenses to revenue = | before tax + interest expense) / the  |
| administrative expenses / revenue    | period's average (interest-bearing    |
| EBITDA = earnings before interest,   | liabilities + equity)                 |
| taxes, depreciation and              | Return on assets = operating profit / |
| amortisation                         | the period's average total assets     |
| EBITDA margin = EBITDA / revenue     | Return on equity = net profit for the |
| Gross margin = gross profit /        | period /the period's average total    |
| revenue                              | equity                                |
| Operating margin = operating profit  | Equity ratio = total equity / total   |
| / revenue                            | equity and liabilities                |
|                                      | Gearing = (interest-bearing           |
|                                      | liabilities - cash and cash           |
|                                      | equivalents) / (interest bearing      |
|                                      | liabilities + equity)                 |
|                                      | Current ratio = total current assets  |
|                                      | / total current liabilities           |
--------------------------------------------------------------------------------


Performance by geographical market                                              
Revenue earned outside Estonia during the first nine months of 2009 accounted   
for approximately 15% of consolidated revenue against approximately 20% a year  
ago.                                                                            

The Group has expanded operations in Latvia - at the end of the first nine      
months of 2009 Latvian revenues accounted for around 12% of the total while in  
2008 (full year) the proportion was 6%. At the same time, the contribution of   
Ukrainian revenues has dropped to 2%. The downturn is attributable to the       
completion of major projects started in the previous period and the complexity  
of entering into new contracts during the steep recession. In Lithuania, the    
Group has suspended active operations for the time being (see interim report    

Changes in the Group's management structure and operations in 2009).            
Further information on developments in the Group's chosen markets can be found  
in interim report Outlooks of the Group's geographical markets.                 
--------------------------------------------------------------------------------
|                       |    9M 2009 |     9M 2008 |     9M 2007 |        2008 |
--------------------------------------------------------------------------------
| Estonia               |      84.9% |       80.1% |       88.1% |       80.3% |
--------------------------------------------------------------------------------
| Ukraine               |       2.2% |       13.4% |       11.9% |       11.4% |
--------------------------------------------------------------------------------
| Lithuania             |       0.5% |        2.4% |          0% |        2.4% |
--------------------------------------------------------------------------------
| Latvia                |      12.3% |        4.1% |          0% |        5.9% |
--------------------------------------------------------------------------------

Performance by business line                                                    
The core business of Nordecon International Group is general contracting and    
project management in buildings and infrastructure construction. In addition,   
the Group is involved in road construction and maintenance, environmental       
engineering, concrete works and real estate development.                        

Consolidated revenue for the first nine months of 2009 was 1,967.6 million      
kroons (125.8 million euros), a 32.4% decrease from the 2,921.7 million kroons  
(186.7 million euros) generated in the first nine months of 2008. Revenue has   
decreased mainly on account of shrinkage in demand in all of the Group's        
markets. In addition, the absolute revenue figure has been impacted by stiff    
competition that has lowered the construction prices (see further commentary and
forecasts for the future in interim report Outlooks of the Group's geographical 
markets).                                                                       

The Group aims to maintain the revenues generated by its main segments          
(Buildings and Infrastructure) in balance as this helps disperse risks and      
provides a more solid foundation under stressed circumstances when one segment  
experiences shrinkage in operating volumes. In view of estimated of demand for  
apartments in the real estate market and housing development risks, in          
subsequent years the proportion of housing construction revenue from apartment  
buildings (the Group as a developer or a builder) will remain significantly     
below the strategic 20% limit.                                                  

Segment revenue                                                                 
In contrast to previous years, at the end of the first nine months of 2009 the  
revenue generated by the Infrastructure segment surpassed that of Buildings.    
This results mainly from the situation in the construction market (particularly 
in Estonia) that has caused the order book of the Infrastructure segment to     
develop more favourably already since the second half of 2008.                  

During the first nine months of 2009, the Buildings and Infrastructure segments 
generated revenue of 872.0 million kroons (55.7 million euros) and 1,075.9      
million kroons (68.8 million euros) respectively. The corresponding figures for 
the first nine months of 2008 were 1,642.2 million kroons (105.0 million euros) 
and 1,226.0 million kroons (78.4 million euros) respectively. The 47% decrease  
in the revenue generated by the Buildings segment corresponds to management's   
assessment of the current market situation and was therefore expected.          

Revenue distribution between segments *                                         
--------------------------------------------------------------------------------
| Business segments             |  9M 2009 |   9M 2008 |   9M 2007 |      2008 |
--------------------------------------------------------------------------------
| Buildings                     |      44% |       64% |       52% |       63% |
--------------------------------------------------------------------------------
| Infrastructure                |      56% |       36% |       48% |       37% |
--------------------------------------------------------------------------------
* In connection with the entry into force of IFRS 8 Operating Segments during   
the reporting period, the Group has changed segment reporting in its financial  
statements. In the Directors' report the Ukrainian and EU Buildings segments    
which are disclosed separately in the financial statements are presented as a   
single segment. In addition, the segment information presented in the Directors'
report does not include the disclosures on “other segments” that are presented  
in the financial statements.                                                    

Management estimates that because of the market situation the proportion of     
revenue generated by the Infrastructure segment in 2009 will continue increasing
compared with 2008. The assessment is supported by the Group's order book as at 
30 September 2009 where the contracts of the Infrastructure segment surpass     
those of the Buildings segment (see Order book in Director's report).           
Revenue distribution within segments                                            

The distribution of the Group's buildings construction revenue has remained     
stable, with commercial buildings accounting for over 50% of the total. As      
anticipated, revenues from the construction of industrial and warehouse         
facilities and apartment buildings have decreased. On the other hand, the       
downturn in construction prices has triggered growth in the construction of     
public buildings thanks to municipal investments in schools, nurseries and other
public buildings. However, despite attractive construction prices, further      
growth in local government projects may be undermined by financing              
difficulties.			                                                                
--------------------------------------------------------------------------------
| Revenue distribution in the   |  9M 2009 |   9M 2008 |   9M 2007 |      2008 |
| Buildings segment             |          |           |           |           |
--------------------------------------------------------------------------------
| Commercial buildings          |      64% |       59% |       58% |       59% |
--------------------------------------------------------------------------------
| Industrial and warehouse      |       9% |       16% |        9% |       16% |
| facilities                    |          |           |           |           |
--------------------------------------------------------------------------------
| Public buildings              |      23% |       14% |       19% |       14% |
--------------------------------------------------------------------------------
| Apartment buildings           |       4% |       11% |       14% |       11% |
--------------------------------------------------------------------------------

Changes in the structure of the Group's infrastructure revenues are attributable
to the addition of the Nordecon Infra SIA subgroup. The contribution of other   
engineering projects has increased, year-over-year, largely on account of growth
in pipeline and outdoor network construction, while environmental engineering   
revenues have expanded thanks to a decline in construction prices that has      
increased investment by state and local government.
                             
--------------------------------------------------------------------------------
| Revenue distribution in the   |  9M 2009 |   9M 2008 |   9M 2007 |      2008 |
| Infrastructure segment        |          |           |           |           |
--------------------------------------------------------------------------------
| Road construction and         |      43% |       52% |       37% |       45% |
| maintenance                   |          |           |           |           |
--------------------------------------------------------------------------------
| Port construction             |      16% |       19% |       39% |       24% |
--------------------------------------------------------------------------------
| Other engineering             |      31% |       23% |       12% |        6% |
--------------------------------------------------------------------------------
| Environmental engineering     |      10% |        6% |       12% |       25% |
--------------------------------------------------------------------------------


Order book                                                                      
At 30 September 2009, the Group's order book stood at 1,612 million kroons (103 
million euros), approximately 50% down from the 3,043 million kroons (194       
million euros) posted a year ago.                                               
--------------------------------------------------------------------------------
|                               |  30 Sept |   30 Sept |   30 Sept |    31 Dec |
|                               |     2009 |      2008 |      2007 |      2008 |
--------------------------------------------------------------------------------
| Order book, in thousands of   | 1,612,16 | 3,042,654 | 3,161,956 | 2,220,748 |
| kroons                        |        0 |           |           |           |
--------------------------------------------------------------------------------
| Order book, in thousands of   |  103,036 |   194,461 |   202,086 |   141,932 |
| euros                         |          |           |           |           |
--------------------------------------------------------------------------------

In the Infrastructure segment, the order book has been growing year-over-year.  
At 30 September 2009 it accounted for 66% of the Group's total order book (30   
September 2008: 52%), reflecting the situation in the construction market where 
shrinkage in the Buildings segment has been outpacing growth in the             
Infrastructure segment. In absolute terms, the order book figures have been     
severely weakened by tumbling construction prices.                              

Between the reporting date (30 September 2009) and the date of release of this  
report, Group companies have been awarded additional construction contracts of  
approximately 180 million kroons (11.5 million euros).                          


People                                                                          
Nordecon believes that its most important assets are its people and that the    
value of the company depends on the professionalism, motivation and loyalty of  
its employees. Accordingly, the Group's management is committed to creating a   
contemporary work environment that fosters professional growth and development  
in terms of working conditions, career opportunities and the nature of the work.

People and personnel expenses                                                   
In the first nine months of 2009 the Group (including the parent and the        
subsidiaries) employed, on average, 1,110 people including around 450 engineers 
and technical personnel (ETP). The acquisition of the Latvian company SIA LCB in
2009 increased the number of staff by more than 100. However, since the end of  
2008 personnel growth has been replaced by a decline owing to downsizing        
triggered by a significant decrease in the Group's operations.                  
Average number of the Group's employees (including the parent and its           
subsidiaries):                                                                  
--------------------------------------------------------------------------------
|     Period      |        ETP         |     Workers      |   Total average    |
--------------------------------------------------------------------------------
|     9M 2009     |        456         |       654        |       1,110        |
--------------------------------------------------------------------------------
|     9M 2008     |        525         |       742        |       1,267        |
--------------------------------------------------------------------------------
|     9M 2007     |        413         |       657        |       1,088        |
--------------------------------------------------------------------------------
|      2008       |        511         |       721        |       1,232        |
--------------------------------------------------------------------------------
The Group's personnel expenses for the first nine months of 2009, including     
associated taxes, totalled 279.9 million kroons (17.9 million euros), a 23%     
decrease compared with the 363.7 million kroons (23.2 million euros) incurred in
the same period in 2008.                                                        

Personnel expenses have declined on account of downsizing and the cutting of    
basic salaries. Employee salaries have been lowered at all Group entities; the  
average pay-cut for engineers and technical personnel was 15%. The performance  
pay of project staff that is linked to the projects' profit margins has also    
dropped.                                                                        

Owing to the overall economic situation and the slump in the construction       
market, in the first nine months of 2009 Group entities terminated employment   
relations with approximately 675 people. The figure includes forced and         
voluntary redundancies involving 450 people. However, this is not directly      
reflected in the total average number of employees because the latter is        
increased by the staff taken over on the acquisition of subsidiaries and the    
people hired under fixed term contracts.                                        

In the first nine months of 2009, the remuneration of the members of the council
of Nordecon International AS including social security charges amounted to 1,077
thousand kroons (69 thousand euros). The corresponding figure for the first nine
months of 2008 was 1,084 thousand kroons (69 thousand euros). The remuneration  
and benefits of the members of the board of Nordecon International AS including 
social security charges totalled 2,701 thousand kroons (173 thousand euros)     
compared with 13,550 thousand kroons (866 thousand euros) for the first nine    
months of 2008. The differences in the remuneration of the board stem from the  
fact that since 5 January 2009 the board had three members while in 2008 the    
number was five (see interim report Changes in the Group's management structure 
and operations in 2009). In addition, the figure has been impacted by a 15%     
reduction in board member remuneration across the Group.                        


Share and shareholders                                                          
Share information                                                               
ISIN code 	EE3100039496                                                        
Short name of the security 	NCN1T (until 3 April 2009 EEH1T)                    
Nominal value	10.00 kroons / 0.64 euros                                         
Total number of securities issued 	30,756,728                                   
Number of listed securities 	30,756,728                                         
Listing date 			18 May 2006                                                     

The share capital of Nordecon International AS consists of 30,756,728 ordinary  
shares with a par value of 10 Estonian kroons each. Owners of ordinary shares   
are entitled to dividends as distributed from time to time. Each share carries  
one vote at the general meetings of Nordecon International AS.                  

Summarised trading results                                                      
Share trading history (EEK)                                                     
--------------------------------------------------------------------------------
| Price                         |      9M 2009 |       9M 2008 |       9M 2007 |
--------------------------------------------------------------------------------
| Open                          |        16.43 |         76.51 |        166.64 |
--------------------------------------------------------------------------------
| High                          |        25.97 |         76.51 |        224.53 |
--------------------------------------------------------------------------------
| Low                           |         8.61 |         37.55 |          79.8 |
--------------------------------------------------------------------------------
| Last closing price            |        23.78 |         41.78 |         86.06 |
--------------------------------------------------------------------------------
| Traded volume                 |    7,157,618 |     5,402,797 |     4,863,307 |
--------------------------------------------------------------------------------
| Turnover, millions            |       128.24 |        291.03 |        648.01 |
--------------------------------------------------------------------------------
| Listed volume (30 Sept ),     |       30,757 |        30,757 |        15,378 |
| thousands                     |              |               |               |
--------------------------------------------------------------------------------
| Market capitalisation (30     |       731.40 |      1,285.03 |      1,323.43 |
| Sept ), millions              |              |               |               |
--------------------------------------------------------------------------------

Share trading history (EUR)                                                     
--------------------------------------------------------------------------------
| Price                         |      9M 2009 |       9M 2008 |       9M 2007 |
--------------------------------------------------------------------------------
| Open                          |         1.05 |          4.89 |         10.65 |
--------------------------------------------------------------------------------
| High                          |         1.66 |          4.89 |         14.35 |
--------------------------------------------------------------------------------
| Low                           |         0.55 |          2.40 |          5.10 |
--------------------------------------------------------------------------------
| Last closing price            |         1.52 |          2.67 |          5.50 |
--------------------------------------------------------------------------------
| Traded volume                 |    7,157,618 |     5,402,797 |     4,863,307 |
--------------------------------------------------------------------------------
| Turnover, millions            |         8.20 |         18.60 |         41.42 |
--------------------------------------------------------------------------------
| Listed volume (30 Sept ),     |       30,757 |        30,757 |        15,378 |
| thousands                     |              |               |               |
--------------------------------------------------------------------------------
| Market capitalisation (30     |        46.75 |         82.13 |         84.58 |
| Sept ), millions              |              |               |               |
--------------------------------------------------------------------------------

Shareholder structure                                                           
The largest shareholders of Nordecon International AS at 30 September 2009      
--------------------------------------------------------------------------------
| Shareholder                                   |    Number of |     Ownership |
|                                               |       shares |      interest |
--------------------------------------------------------------------------------
| AS Nordic Contractors                         |   16,507,464 |         53.67 |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken Ab Clients      |    2,720,758 |          8.85 |
--------------------------------------------------------------------------------
| ING Luxembourg S.A.                           |    1,111,853 |          3.61 |
--------------------------------------------------------------------------------
| Ain Tromp                                     |      678,960 |          2.21 |
--------------------------------------------------------------------------------
| State Street Bank and Trust Omnibus Account A |      660,111 |          2.15 |
| Fund                                          |              |               |
--------------------------------------------------------------------------------
| ASM Investments Oܜ                           |      519,600 |          1.69 |
--------------------------------------------------------------------------------
| SEB Pank AS                                   |      344,757 |          1.12 |
--------------------------------------------------------------------------------
| Aivo Kont                                     |      339,480 |          1.10 |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken                 |      339,410 |          1.10 |
--------------------------------------------------------------------------------
| The Bank of New York Mellon                   |      337,509 |          1.10 |
--------------------------------------------------------------------------------
| Raul Rebane                                   |      316,104 |          1.03 |
--------------------------------------------------------------------------------

On 4 September 2009 AS Nordic Contractors announced that it had sold 2,300,000  
of its shares in Nordecon International AS (7.48% of all shares) to             
institutional investors. As a result of the transaction, the majority           
shareholder's interest in Nordecon International AS dropped to 53.67%. On 16    
September 2009, East Capital Asset Management AB announced that East Capital    
Group's total stake in Nordecon International AS (through nominee accounts) was 
5.04%.                                                                          

Shareholder structure at 30 September 2009                                      
--------------------------------------------------------------------------------
|                                         |         Number of |      Ownership |
|                                         |      shareholders |       interest |
--------------------------------------------------------------------------------
| Shareholders with interest exceeding 5% |                 1 |         53.67% |
--------------------------------------------------------------------------------
| Shareholders with interest between 1%   |                10 |         23.96% |
| and 5%                                  |                   |                |
--------------------------------------------------------------------------------
| Shareholders with interest below 1%     |             1,897 |         22.37% |
--------------------------------------------------------------------------------
| Total                                   |             1,908 |        100.00% |
--------------------------------------------------------------------------------

Shares controlled by members of the council of Nordecon International AS at 30  
September 2009                                                                  
--------------------------------------------------------------------------------
| Council                  |                 |      Number of |      Ownership |
|                          |                 |         shares |       interest |
--------------------------------------------------------------------------------
| Toomas Luman (AS Nordic  | Chairman of the |     16,759,144 |          54.49 |
| Contractors,             | Council         |                |                |
| OÜ Luman ja Pojad)*      |                 |                |                |
--------------------------------------------------------------------------------
| Ain Tromp                | Member of the   |        678,960 |           2.21 |
|                          | Council         |                |                |
--------------------------------------------------------------------------------
| Alar Kroodo (ASM         | Member of the   |        519,600 |           1.69 |
| Investments OÜ)*         | Council         |                |                |
--------------------------------------------------------------------------------
| Andri Hõbemägi           | Member of the   |         40,000 |           0.13 |
|                          | Council         |                |                |
--------------------------------------------------------------------------------
| Tiina Mõis               | Member of the   |              0 |           0.00 |
|                          | Council         |                |                |
--------------------------------------------------------------------------------
| Meelis Milder            | Member of the   |              0 |           0.00 |
|                          | Council         |                |                |
--------------------------------------------------------------------------------
* Companies controlled by the individual                                        

Shares controlled by members of the board of Nordecon International AS at 30    
September 2009                                                                  
--------------------------------------------------------------------------------
|  Board                      |               |     Number of |      Ownership |
|                             |               |        shares |       interest |
--------------------------------------------------------------------------------
| Jaano Vink                  | Chairman of   |        34,000 |          0.11% |
|                             | the Board     |               |                |
--------------------------------------------------------------------------------
| Sulev Luiga                 | Member of the |         1,000 |          0.00% |
|                             | Board         |               |                |
--------------------------------------------------------------------------------
| Priit Tiru                  | Member of the |             0 |          0.00% |
|                             | Board         |               |                |
--------------------------------------------------------------------------------

Members of the board and council of Nordecon International AS and companies     
controlled by them have not been granted any share options under which they     
could acquire shares in Nordecon International AS in subsequent periods.        


Information on significant transactions with related parties                    
On 26 March 2009 Nordecon Ehitus AS, a wholly-owned subsidiary of Nordecon      
International AS, acquired a 50% stake in OÜ Unigate from AS Arealis, a         
subsidiary of the Group's controlling shareholder Nordic Contractors AS.        
OÜ Unigate is a housing developer incorporated in Estonia that has been         
developing properties belonging to it in Paekalda street in Tallinn. The        
investment was made in line with the Group's strategy according to which in     
2009-2010 the Group is to prepare for a potential rise of the Estonian real     
estate market that may take place after 2010. For this, the Group's subsidiaries
will acquire property portfolios that will allow launching housing construction 
projects as soon as the market situation changes.                               

In accordance with the terms of the transaction, AS Arealis was paid 20.0       
million kroons (1.3 million euros) including 1.5 million kroons (0.1 million    
euros) for an interest in the entity's share capital and 18.5 million kroons    
(1.2 million euros) for AS Arealis' loan receivables from OÜ Unigate. Depending 
on the success of the development operations, AS Arealis will also be paid a    
variable price component that will be calculated at 450 kroons (28.8 euros) per 
square metre sold. In February 2009 the market value of the properties belonging
to OÜ Unigate (the proportion acquired by Nordecon Ehitus AS) was approximately 
47.5 million kroons (3.0 million euros).                                        


Outlooks of the Group's geographical markets                                    

Estonia                                                                         
According to assessment of the Group's management, in 2009-2010 the Estonian    
construction market will be characterised by the following features:            

- Total demand in the construction market will depend heavily on public 
procurement tenders and the number and pricing of infrastructure, environmental 
and other projects launched with the support of the European Union funds (the   
latter will be critically influenced by the administrative capabilities of the  
central and local governments). However, the more moderate decline in the       
infrastructure sector will not be able to compensate for the steep contraction  
of the buildings construction market that has currently been abandoned by most  
private sector corporates and individuals. The Group's management estimates that
by 2010 the total volumes of the construction market will have decreased by over
50% compared with 2008.                                                         

- The number of development and buildings construction companies will decrease 
(market consolidation). Companies focused on residential construction which in  
2008 began seeking opportunities to penetrate other market segments such as     
infrastructure will continue to do so, heightening competition in the segments  
involved. The continuing slump will lead to mergers, takeovers and bankruptcies.

- Owing to the global financial crisis, the amount of money circulating in the 
economy has decreased considerably. As a result, more and more private sector   
companies will have difficulty in raising debt to finance new construction      
projects. The steep decrease in demand may be somewhat alleviated by a          
competition-induced decrease in prices, which will render investment in         
construction projects more attractive than it was during the boom of 2006 and   
2007.                                                                           

- Building materials manufacturers that significantly increased their output 
during the growth phase of the market will be faced by shrinking demand and,    
consequently, greater strain in meeting the obligations taken for increasing    
capacities.                                                                     

- Real estate development companies' ability to service and repay existing
loans 
will weaken and their creditworthiness will decrease. For companies involved in 
general contracting and project management, this may mean an increase in        
doubtful and irrecoverable receivables.                                         

- The importance of infrastructure projects will increase and, accordingly, 
critical success factors will include specialised engineering expertise and     
experience as well as the availability of relevant resources.                   

- The deteriorating economic climate and fierce competition in the construction 
market along with falling demand will cause continuing unemployment for         
construction workers. The ensuing increase in the availability of labour will   
lower construction companies' personnel expenses although in the short term the 
decrease will be lessened by the disbursement of redundancy benefits.           

- The change in construction projects' financing schemes (customers' settlement 
terms will extend significantly) in combination with additional requirements to 
the financing provided by general contractors during the construction period    
will put pressure on contractors' liquidity.                                    

Nordecon International Group operates in accordance with its long-term          
objectives that are adjusted for changes in the external environment. Relevant  
strategic management is the responsibility of the Group's board (see interim    
report The Group's strategy and objectives for 2009-2013).                      
The Group has prepared for changes in the economic environment by:              

- Setting the objective of reducing the cost base by 30% (by cutting personnel 
expenses through downsizing and lowering salaries, reducing the costs of goods  
and services purchased, etc)                                                    

- Restructuring the Group for better management of the business lines
(buildings 
and infrastructure construction) and maintaining the competitive advantages     

- Performing a more thorough preliminary analysis of the customers' solvency
and 
creditworthiness and dealing proactively with the collection of overdue         
receivables                                                                     

- Dispersing risks through portfolio design 

- Dispersing activities across geographical areas and business segments 

Latvia and Lithuania                                                            
Despite the difficulties of the Latvian political and monetary systems, to date 
the volumes of various infrastructure projects financed by the state and local  
government with the support of EU funding (such as projects for the             
rehabilitation of the water supply and central heating systems) have remained   
relatively stable Construction activities are affected by the situation of the  
financing institutions and declining demand that heightens competition.
         
Moreover, the ability of the Latvian central and local governments to provide   
self-financing for projects financed with the support of the EU is weakening.   
This is causing extensive settlement delays and increasing dependence on the    
loans granted to the state and local governments by IMF.  
                      
As a result, the liquidity of the Group's Latvian subsidiary Nordecon Infra has 
decreased to a level where its further operations depend largely on its ability 
to raise additional external financing and to refinance existing borrowings. At 
the date of release of this report, Nordecon Infra SIA continues operating as a 
going concern. However, if external financing were withdrawn, the company might 
run into serious difficulties.
                                                  
Recent economic developments in Lithuania have been similar to the ones in the  
other Baltic countries. Slowdown in investment, both in the public and private  
sectors, and similar factors have directly influenced the construction market.  
The commercial and residential construction markets (the Group as a general     
contractor not a developer) have contracted visibly and the launch of any new   
private sector projects in the near future is unlikely.
                         
In response to this, the business operations of the Group's Lithuanian          
subsidiary Nordecon Statyba UAB (formerly UAB Eurocon LT) have been essentially 
suspended and the Group is monitoring the market situation. The temporary       
suspension of operations does not result in any major costs for the Group. The  
Group's management does not exclude the possibility that the Lithuanian         
operations will remain suspended also after 2010. The decision does not change  
the Group's strategic objectives in the Lithuanian construction market and does 
not imply the sale or liquidation of the company.
                               
The Group's management remains alert to developments in Latvia and Lithuania    
because similarly to Estonia, their whole economy is in difficulty and this can 
also be felt in the construction sector. Management is analysing the Group's    
operations in the Latvian and Lithuanian markets in the light of developments in
the external environment and is prepared to revise the existing plans swiftly   
and decisively.  
                                                               
The Group designs its activities in the Latvian and Lithuanian construction     
markets in accordance with its international expansion strategy (see interim    
report The Group's strategy and objectives for 2009-2013) and believes that in  
the long term the two markets will have a logical place in the Group's          
internationalisation.                                                           

Ukraine                                                                         
In Ukraine, the Group will continue mainly as a general contractor and project  
manager in the construction of commercial buildings and production facilities.  
In 2009 the number of projects started in the buildings construction market has 
decreased substantially. The situation in the sector is not expected to improve 
until after the first half of 2010.
                                             
Activities on development projects that require major investment (currently two)
have been suspended and conserved to minimise the risks until the situation in  
the Ukrainian and global financial markets has eased up.                        
The main risks in the Ukrainian market are connected with the low administrative
efficiency of the central and local governments and the judicial system,        
inflation, and the availability of quality construction inputs.  Demand is      
mainly undermined by the lack of financing. To date, the weakening of the local 
currency has stopped and the Group's exposure to market-based currency risk has 
decreased considerably.                                                         

Nevertheless, the Group believes that the construction market of a country with 
a population of 46 million will offer business opportunities also in the future.
The Group's main success factor is negligible competition in the project        
management sector (the Group offers flexible construction management in         
combination with European practices and competencies). The Group's management is
confident that the current crisis in the Ukrainian construction market and      
economy as a whole will transform the local understanding and expectations of   
general contracting and project management in the construction business, which  
will improve the Group's position in the long-term perspective.                 


Description of the main risks                                                   

Business risks                                                                  
To mitigate the risks arising from the seasonal nature of the construction      
business (primarily the weather conditions during the winter months), the Group 
has acquired road maintenance contracts that generate year-round business. In   
addition, Group companies are constantly seeking new technical solutions that   
would allow working more efficiently under changeable weather conditions.
       
To manage their daily construction risks, Group companies purchase Contractors' 
All Risks insurance. Depending on the nature of the project, both general frame 
agreements and specially tailored project-specific contracts are used. In       
addition, as a rule, subcontractors are required to secure the performance of   
their obligations with a bank guarantee issued for the benefit of a Group       
company. To remedy builder-caused deficiencies which may be detected during the 
warranty period, all Group companies create warranties provisions. At 30        
September 2009 the provisions (including current and non-current ones) totalled 
15.2 million kroons (1.0 million euros). The corresponding figure at 30         
September 2008 was 10.3 million kroons (0.7 million euros).                     

Credit risks                                                                    
For credit risk management, a potential customer's settlement behaviour and     
creditworthiness are analysed already in the tendering stage. Subsequent to the 
signature of a contract, the customer's settlement behaviour is monitored on an 
ongoing basis from the making of an advance payment to adherence to the         
contractual settlement schedule, which usually depends on the documentation of  
the delivery of work performed. We believe that the system in place allows us to
respond to customers' settlement difficulties with sufficient speed. As at the  
end of the reporting period, our customers' settlement behaviour was good,      
considering the current economic situation; however, there were also some large 
problem customers. The proportion of overdue receivables has increased,         
increasing the probability of credit losses also in subsequent periods. In      
accordance with the Group's accounting policies, all receivables that are more  
than 180 days overdue or in respect of which no additional settlement agreements
have been reached are recognised as an expense.                                 

The reporting period's net loss on doubtful receivables amounted to 18.6 million
kroons (1.2 million euros). In the comparative period in 2008, recoveries of    
receivables written down in preceding periods surpassed the period's write-down 
losses by 0.2 million kroons (0 million euros).                                 

The Group's subsidiary AS Eston Ehitus has filed bankruptcy petitions against   
Peterburi Ärikvartal OÜ that commissioned the construction of the Peterburi     
Business Quarter and Kobe Investments AS that provided partial financing for the
project. The Group's receivables from the project amount to approximately 25    
million kroons (1.6 million euros). The Group's management will decide whether  
and to what extent the receivables need to be written down in the fourth quarter
by reference to the progress of the bankruptcy proceedings.                     

Liquidity risks                                                                 
Free funds are placed in overnight or fixed-interest term deposits with the     
largest banks of the markets where the Group operates. To ensure timely         
settlement of liabilities, approximately two weeks' working capital is kept in  
current accounts or overnight deposits. Where necessary, overdraft facilities   
are used. At the reporting date, the Group's current assets exceeded its current
liabilities 1.43-fold (30 September 2008: 1.42-fold) and available cash funds   
totalled 241.4 million kroons (15.4 million euros) (30 September 2008: 296.2    
million kroons / 18.9 million euros), providing a sufficient liquidity buffer   
for operating in an economic environment that is more uncertain than in the     
previous year.                                                                  

Interest rate risks                                                             
The liabilities of Group companies to banks operating in Estonia, Latvia and    
Ukraine have mainly fixed interest rates. Finance lease liabilities have        
floating interest rates and are linked to EURIBOR. At 30 September 2009, the    
Group's interest-bearing loans and borrowings totalled 610.5 million kroons     
(39.0 million euros), a 9.2 million kroon (0.6 million euro) decrease           
year-over-year. Interest expense for the first nine months of 2009 amounted to  
22.0 million kroons (1.4 million euros). Compared with the first nine months of 
2008, interest expense has contracted by 6.2 million kroons (0.4 million euros) 
thanks to a decline in the EURIBOR base rate and a decrease in loans and        
borrowings.                                                                     

Currency risks                                                                  
As a rule, construction contracts and subcontractors' service contracts are made
in the currency of the host country: in Estonia contracts are made in Estonian  
kroons (EEK), in Latvia in Latvian lats (LVL), in Lithuania in Lithuanian litas 
(LTL) and in Ukraine in Ukrainian hryvnas (UAH). Services purchased from other  
countries are mostly priced in euros, which does not constitute a currency risk 
for the Group's Estonian, Latvian and Lithuanian entities.                      

The Group's foreign exchange gains and losses result mainly from its Ukrainian  
operations because the Ukrainian national currency floats against the euro and, 
accordingly, the Estonian kroon. To date, the weakening of the Ukrainian hryvna 
against the euro that began in the last quarter of 2008 has stopped.  The       
Group's net exchange loss for the first nine months of 2009 was 0.9 million     
kroons (0.06 million euros). In the comparative period in 2008, the Group's     
exchange differences resulted in a gain of 0.7 million kroons (0.04 million     
euros).                                                                         


Condensed consolidated interim financial statements                             

Condensed consolidated interim statement of financial position                  
--------------------------------------------------------------------------------
| EEK ‘000                                   |   30 Sept 2009 |    31 Dec 2008 |
--------------------------------------------------------------------------------
| ASSETS                                     |                |                |
--------------------------------------------------------------------------------
| Current assets                             |                |                |
--------------------------------------------------------------------------------
| Cash and cash equivalents                  |        241,426 |        296,184 |
--------------------------------------------------------------------------------
| Trade receivables                          |        455,890 |        473,935 |
--------------------------------------------------------------------------------
| Other receivables and prepayments          |        359,150 |        408,541 |
--------------------------------------------------------------------------------
| Deferred tax assets                        |            776 |            776 |
--------------------------------------------------------------------------------
| Income tax assets                          |              0 |          3,207 |
--------------------------------------------------------------------------------
| Inventories                                |        433,402 |        386,733 |
--------------------------------------------------------------------------------
| Non-current assets held for sale           |          4,484 |              0 |
--------------------------------------------------------------------------------
| Total current assets                       |      1,495,129 |      1,569,376 |
--------------------------------------------------------------------------------
| Non-current assets                         |                |                |
--------------------------------------------------------------------------------
| Long-term investments                      |        126,554 |        112,605 |
--------------------------------------------------------------------------------
| Investment property                        |        116,783 |        116,783 |
--------------------------------------------------------------------------------
| Property, plant and equipment              |        221,847 |        263,295 |
--------------------------------------------------------------------------------
| Intangible assets                          |        279,335 |        305,188 |
--------------------------------------------------------------------------------
| Total non-current assets                   |        744,519 |        797,871 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                               |      2,239,648 |      2,367,247 |
--------------------------------------------------------------------------------
| LIABILITIES                                |                |                |
--------------------------------------------------------------------------------
| Current liabilities                        |                |                |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings      |        241,478 |        235,948 |
--------------------------------------------------------------------------------
| Trade payables                             |        390,226 |        439,615 |
--------------------------------------------------------------------------------
| Taxes payable                              |         38,971 |         65,760 |
--------------------------------------------------------------------------------
| Other payables                             |        356,273 |        423,270 |
--------------------------------------------------------------------------------
| Provisions                                 |         13,826 |         11,600 |
--------------------------------------------------------------------------------
| Total current liabilities                  |      1,040,776 |      1,176,193 |
--------------------------------------------------------------------------------
| Non-current liabilities                    |                |                |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings      |        369,004 |        318,578 |
--------------------------------------------------------------------------------
| Other liabilities                          |          3,035 |          2,534 |
--------------------------------------------------------------------------------
| Provisions                                 |          1,367 |          6,630 |
--------------------------------------------------------------------------------
| Total non-current liabilities              |        373,406 |        327,742 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                          |      1,414,182 |      1,503,935 |
--------------------------------------------------------------------------------
| EQUITY                                     |                |                |
--------------------------------------------------------------------------------
| Share capital                              |        307,567 |        307,567 |
--------------------------------------------------------------------------------
| Statutory capital reserve                  |         40,012 |         34,800 |
--------------------------------------------------------------------------------
| Translation reserve                        |         -4,298 |         -4,106 |
--------------------------------------------------------------------------------
| Retained earnings                          |        456,453 |        426,995 |
--------------------------------------------------------------------------------
| Equity attributable to owners of the       |        799,734 |        765,256 |
| parent                                     |                |                |
--------------------------------------------------------------------------------
| Non-controlling interests                  |         25,733 |         98,056 |
--------------------------------------------------------------------------------
| TOTAL EQUITY                               |        825,467 |        863,312 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY               |      2,239,648 |      2,367,247 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| EUR ‘000                                    |  30 Sept 2009 |    31 Dec 2008 |
--------------------------------------------------------------------------------
| ASSETS                                      |               |                |
--------------------------------------------------------------------------------
| Current assets                              |               |                |
--------------------------------------------------------------------------------
| Cash and cash equivalents                   |        15,430 |         18,930 |
--------------------------------------------------------------------------------
| Trade receivables                           |        29,137 |         30,290 |
--------------------------------------------------------------------------------
| Other receivables and prepayments           |        22,954 |         26,110 |
--------------------------------------------------------------------------------
| Deferred tax assets                         |            50 |             50 |
--------------------------------------------------------------------------------
| Income tax assets                           |             0 |            205 |
--------------------------------------------------------------------------------
| Inventories                                 |        27,699 |         24,717 |
--------------------------------------------------------------------------------
| Non-current assets held for sale            |           287 |              0 |
--------------------------------------------------------------------------------
| Total current assets                        |        95,556 |        100,301 |
--------------------------------------------------------------------------------
| Non-current assets                          |               |                |
--------------------------------------------------------------------------------
| Long-term investments                       |         8,088 |          7,197 |
--------------------------------------------------------------------------------
| Investment property                         |         7,464 |          7,464 |
--------------------------------------------------------------------------------
| Property, plant and equipment               |        14,179 |         16,828 |
--------------------------------------------------------------------------------
| Intangible assets                           |        17,853 |         19,505 |
--------------------------------------------------------------------------------
| Total non-current assets                    |        47,583 |         50,993 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                                |       143,140 |        151,295 |
--------------------------------------------------------------------------------
| LIABILITIES                                 |               |                |
--------------------------------------------------------------------------------
| Current liabilities                         |               |                |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings       |        15,433 |         15,080 |
--------------------------------------------------------------------------------
| Trade payables                              |        24,940 |         28,096 |
--------------------------------------------------------------------------------
| Taxes payable                               |         2,491 |          4,203 |
--------------------------------------------------------------------------------
| Other payables                              |        22,770 |         27,052 |
--------------------------------------------------------------------------------
| Provisions                                  |           884 |            741 |
--------------------------------------------------------------------------------
| Total current liabilities                   |        66,518 |         75,172 |
--------------------------------------------------------------------------------
| Non-current liabilities                     |               |                |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings       |        23,584 |         20,361 |
--------------------------------------------------------------------------------
| Other liabilities                           |           194 |            162 |
--------------------------------------------------------------------------------
| Provisions                                  |            87 |            424 |
--------------------------------------------------------------------------------
| Total non-current liabilities               |        23,865 |         20,947 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                           |        90,384 |         96,119 |
--------------------------------------------------------------------------------
| EQUITY                                      |               |                |
--------------------------------------------------------------------------------
| Share capital                               |        19,657 |         19,657 |
--------------------------------------------------------------------------------
| Statutory capital reserve                   |         2,557 |          2,224 |
--------------------------------------------------------------------------------
| Translation reserve                         |          -275 |           -262 |
--------------------------------------------------------------------------------
| Retained earnings                           |        29,173 |         27,290 |
--------------------------------------------------------------------------------
| Equity attributable to owners of the parent |        51,112 |         48,909 |
--------------------------------------------------------------------------------
| Non-controlling interests                   |         1,645 |          6,267 |
--------------------------------------------------------------------------------
| TOTAL EQUITY                                |        52,756 |         55,176 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY                |       143,140 |        151,295 |
--------------------------------------------------------------------------------


Condensed consolidated interim statement of comprehensive income                
--------------------------------------------------------------------------------
| EEK ‘000                  | Q3 2009 | Q3 2008 | 9M 2009 | 9M 2008 |     2008 |
--------------------------------------------------------------------------------
| Revenue                   | 742,546 | 1,051,0 | 1,967,6 | 2,921,6 | 3,867,91 |
|                           |         |      62 |      40 |      97 |        7 |
--------------------------------------------------------------------------------
| Cost of sales             | 661,677 | 977,791 | 1,802,4 | 2,609,6 | 3,510,00 |
|                           |         |         |      18 |      89 |        6 |
--------------------------------------------------------------------------------
| Gross profit              |  80,869 |  73,271 | 165,222 | 312,008 |  357,911 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution expenses     |   2,427 |   2,810 |   6,790 |   6,212 |    8,007 |
--------------------------------------------------------------------------------
| Administrative expenses   |  30,532 |  44,266 |  95,882 | 137,354 |  182,526 |
--------------------------------------------------------------------------------
| Other operating income    |   2,279 |     105 |  22,177 |  18,525 |   63,947 |
--------------------------------------------------------------------------------
| Other operating expenses  |  10,745 |  -7,622 |  40,118 |   8,068 |   22,845 |
--------------------------------------------------------------------------------
| Operating profit          |  39,444 |  33,922 |  44,609 | 178,899 |  208,480 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income            |   4,907 |  53,760 |  35,809 |  77,187 |   96,877 |
--------------------------------------------------------------------------------
| Finance expenses          |   3,933 |   4,751 |  26,845 |  29,886 |   68,019 |
--------------------------------------------------------------------------------
| Net finance income        |     974 |  49,009 |   8,964 |  47,301 |   28,858 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of profit of equity |     738 |   2,198 |   1,515 |   2,198 |       17 |
| accounted investees       |         |         |         |         |          |
--------------------------------------------------------------------------------
| Share of loss of equity   |     155 |     746 |   3,038 |   1,093 |   24,770 |
| accounted investees       |         |         |         |         |          |
--------------------------------------------------------------------------------
| Net share of profit and   |     583 |   1,452 |  -1,523 |   1,105 |  -24,753 |
| loss of equity accounted  |         |         |         |         |          |
| investees                 |         |         |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax  |  41,001 |  84,383 |  52,050 | 227,306 |  212,585 |
--------------------------------------------------------------------------------
| Income tax expense        |    -578 |  11,622 |   5,317 |  43,772 |   41,269 |
--------------------------------------------------------------------------------
| Profit for the period     |  41,579 |  72,761 |  46,733 | 183,534 |  171,316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive       |         |         |         |         |          |
| income:                   |         |         |         |         |          |
--------------------------------------------------------------------------------
| Exchange differences on   |    -769 |  -1,619 |  -2,480 |  -3,108 |   -6,371 |
| translating foreign       |         |         |         |         |          |
| operations                |         |         |         |         |          |
--------------------------------------------------------------------------------
| Total other comprehensive |    -769 |  -1,619 |  -2,480 |  -3,108 |   -6,371 |
| income for the period     |         |         |         |         |          |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE       |  40,810 |  71,142 |  44,253 | 180,426 |  164,945 |
| INCOME FOR THE PERIOD     |         |         |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  Profit attributable to:  |         |         |         |         |          |
--------------------------------------------------------------------------------
| - Owners of the parent    |  42,260 |  51,204 |  65,436 | 155,476 |  145,580 |
--------------------------------------------------------------------------------
| - Non-controlling         |  -2,681 |  21,557 | -18,703 |  28,058 |   25,736 |
| interests                 |         |         |         |         |          |
--------------------------------------------------------------------------------
|                           |  41,579 |  72,761 |  46,733 | 183,534 |  171,316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive       |         |         |         |         |          |
| income attributable to:   |         |         |         |         |          |
--------------------------------------------------------------------------------
| - Owners of the parent    |  42,776 |  50,140 |  65,245 | 151,165 |  139,120 |
--------------------------------------------------------------------------------
| - Non-controlling         |  -1,966 |  21,002 | -20,992 |  29,261 |   25,825 |
| interests                 |         |         |         |         |          |
--------------------------------------------------------------------------------
|                           |  40,810 |  71,142 |  44,253 | 180,426 |  164,945 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share        |         |         |         |         |          |
| attributable to owners of |         |         |         |         |          |
| the parent:               |         |         |         |         |          |
--------------------------------------------------------------------------------
| Basic earnings per share  |    1.44 |    1.66 |    2.13 |    5.05 |     4.73 |
| (EEK/share)               |         |         |         |         |          |
--------------------------------------------------------------------------------
| Diluted earnings per      |    1.44 |    1.66 |    2.13 |    5.05 |     4.73 |
| share (EEK/share)         |         |         |         |         |          |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| EUR ‘000                  | Q3 2009 | Q3 2008 | 9M 2009 | 9M 2008 |     2008 |
--------------------------------------------------------------------------------
| Revenue                   |  47,457 |  67,175 | 125,755 | 186,730 |  247,205 |
--------------------------------------------------------------------------------
| Cost of sales             |  42,289 |  62,492 | 115,196 | 166,790 |  224,330 |
--------------------------------------------------------------------------------
| Gross profit              |   5,168 |   4,683 |  10,560 |  19,941 |   22,875 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution expenses     |     155 |     180 |     434 |     397 |      512 |
--------------------------------------------------------------------------------
| Administrative expenses   |   1,951 |   2,829 |   6,128 |   8,779 |   11,666 |
--------------------------------------------------------------------------------
| Other operating income    |     146 |       7 |   1,417 |   1,184 |    4,087 |
--------------------------------------------------------------------------------
| Other operating expenses  |     687 |     487 |   2,564 |     516 |    1,460 |
--------------------------------------------------------------------------------
| Operating profit          |   2,521 |   2,168 |   2,851 |  11,434 |   13,324 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income            |     314 |   3,436 |   2,289 |   4,933 |    6,192 |
--------------------------------------------------------------------------------
| Finance expenses          |     251 |     304 |   1,716 |   1,910 |    4,347 |
--------------------------------------------------------------------------------
| Net finance income /      |      63 |   3,132 |     573 |   3,023 |    1,844 |
| expense                   |         |         |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of profit of equity |      47 |     140 |      97 |     140 |        1 |
| accounted investees       |         |         |         |         |          |
--------------------------------------------------------------------------------
| Share of loss of equity   |      10 |      48 |     194 |      70 |    1,583 |
| accounted investees       |         |         |         |         |          |
--------------------------------------------------------------------------------
| Net share of profit and   |      37 |      93 |     -97 |      71 |   -1,582 |
| loss of equity accounted  |         |         |         |         |          |
| investees                 |         |         |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax  |   2,620 |   5,393 |   3,326 |  14,528 |   13,587 |
--------------------------------------------------------------------------------
| Income tax expense        |     -37 |     743 |     340 |   2,798 |    2,638 |
--------------------------------------------------------------------------------
| Profit for the period     |   2,657 |   4,650 |   2,986 |  11,730 |   10,949 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive       |         |         |         |         |          |
| income:                   |         |         |         |         |          |
--------------------------------------------------------------------------------
| Exchange differences on   |     -49 |    -103 |    -159 |    -199 |     -407 |
| translating foreign       |         |         |         |         |          |
| operations                |         |         |         |         |          |
--------------------------------------------------------------------------------
| Total other comprehensive |     -49 |    -103 |    -159 |    -199 |     -407 |
| income for the period     |         |         |         |         |          |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE       |   2,608 |   4,547 |   2,828 |  11,531 |   10,542 |
| INCOME FOR THE PERIOD     |         |         |         |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  Profit attributable to:  |         |         |         |         |          |
--------------------------------------------------------------------------------
| - Owners of the parent    |   2,828 |   3,273 |   4,182 |   9,937 |    9,304 |
--------------------------------------------------------------------------------
| - Non-controlling         |    -171 |   1,378 |  -1,195 |   1,793 |    1,645 |
| interests                 |         |         |         |         |          |
--------------------------------------------------------------------------------
|                           |   2,657 |   4,650 |   2,986 |  11,730 |   10,949 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive       |         |         |         |         |          |
| income attributable to:   |         |         |         |         |          |
--------------------------------------------------------------------------------
| - Owners of the parent    |   2,734 |   3,205 |   4,170 |   9,661 |    8,891 |
--------------------------------------------------------------------------------
| - Non-controlling         |    -126 |   1,342 |  -1,342 |   1,870 |    1,651 |
| interests                 |         |         |         |         |          |
--------------------------------------------------------------------------------
|                           |   2,608 |   4,547 |   2,828 |  11,531 |   10,542 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share        |         |         |         |         |          |
| attributable to owners of |         |         |         |         |          |
| the parent:               |         |         |         |         |          |
--------------------------------------------------------------------------------
| Basic earnings per share  |    0.09 |    0.11 |    0.14 |    0.32 |     0.30 |
| (EUR/share)               |         |         |         |         |          |
--------------------------------------------------------------------------------
| Diluted earnings per      |    0.09 |    0.11 |    0.14 |    0.32 |     0.30 |
| share (EUR/share)         |         |         |         |         |          |
--------------------------------------------------------------------------------


Condensed consolidated interim statement of cash flows                          
--------------------------------------------------------------------------------
|                                |      EEK ‘000       |       EUR ‘000        |
--------------------------------------------------------------------------------
|                                |  9M 2009 |  9M 2008 |   9M 2009 |   9M 2008 |
--------------------------------------------------------------------------------
| Cash flows from operating      |          |          |           |           |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
| Cash receipts from customers   | 2,581,19 | 3,521,81 |   164,968 |   225,085 |
|                                |        2 |        5 |           |           |
--------------------------------------------------------------------------------
| Cash paid to suppliers         | -2,168,7 | -2,912,2 |  -138,606 |  -186,128 |
|                                |       18 |       66 |           |           |
--------------------------------------------------------------------------------
| Cash paid to and for employees | -331,652 | -430,106 |   -21,196 |   -27,489 |
--------------------------------------------------------------------------------
| Income taxes paid              |   -9,867 |  -36,959 |      -631 |    -2,362 |
--------------------------------------------------------------------------------
| Net cash from operating        |   70,955 |  142,484 |     4,535 |     9,106 |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from investing      |          |          |           |           |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of property, plant |   -1,317 |   -9,845 |       -84 |      -629 |
| and equipment                  |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of intangible      |   -7,588 |     -929 |      -485 |       -59 |
| assets                         |          |          |           |           |
--------------------------------------------------------------------------------
| Proceeds from sale of          |    5,118 |   10,753 |       327 |       687 |
| property, plant and equipment  |          |          |           |           |
| and intangible assets          |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of investment      |     -200 |        0 |       -13 |           |
| properties                     |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries,   |  -11,688 | -202,800 |      -747 |   -12,962 |
| net of cash acquired           |          |          |           |           |
--------------------------------------------------------------------------------
| Proceeds from disposal of      |        0 |    2,063 |         0 |       132 |
| subsidiaries                   |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of associates      |   -6,000 |  -10,842 |      -383 |      -693 |
--------------------------------------------------------------------------------
| Proceeds from disposal of      |    7,024 |  102,927 |       449 |     6,578 |
| associates                     |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of interests in    |  -20,000 |        0 |    -1,278 |         0 |
| joint ventures                 |          |          |           |           |
--------------------------------------------------------------------------------
| Loans granted                  |  -84,843 | -118,454 |    -5,422 |    -7,571 |
--------------------------------------------------------------------------------
| Repayment of loans granted     |   61,040 |   56,562 |     3,901 |     3,615 |
--------------------------------------------------------------------------------
| Dividends received             |       61 |      122 |         4 |         8 |
--------------------------------------------------------------------------------
| Interest received              |   12,524 |   11,794 |       800 |       754 |
--------------------------------------------------------------------------------
| Net cash used in investing     |  -45,869 | -158,649 |    -2,931 |   -10,140 |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing      |          |          |           |           |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
| Proceeds from loans received   |  193,432 |  405,466 |    12,427 |    25,914 |
--------------------------------------------------------------------------------
| Repayment of loans received    | -179,952 | -265,443 |   -11,501 |   -16,965 |
--------------------------------------------------------------------------------
| Dividends paid                 |  -31,933 | -104,130 |    -2,041 |    -6,655 |
--------------------------------------------------------------------------------
| Payment of finance lease       |  -37,648 |  -42,387 |    -2,406 |    -2,709 |
| liabilities                    |          |          |           |           |
--------------------------------------------------------------------------------
| Interest paid                  |  -23,344 |  -29,053 |    -1,492 |    -1,857 |
--------------------------------------------------------------------------------
| Other payments made            |     -307 |     -301 |       -20 |       -19 |
--------------------------------------------------------------------------------
| Net cash used in financing     |  -79,752 |  -35,848 |    -5,033 |    -2,291 |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow                  |  -54,666 |  -52,013 |    -3,494 |    -3,324 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at   |  296,184 |  236,112 |    18,930 |    15,090 |
| beginning of period            |          |          |           |           |
--------------------------------------------------------------------------------
| Effect of exchange rate        |      -92 |      -15 |        -6 |        -1 |
| fluctuations                   |          |          |           |           |
--------------------------------------------------------------------------------
| Decrease  in cash and cash     |  -54,666 |  -52,013 |    -3,494 |    -3,324 |
| equivalents                    |          |          |           |           |
--------------------------------------------------------------------------------
| Cash and cash equivalents at   |  241,426 |  184,084 |    15,430 |    11,765 |
| end of period                  |          |          |           |           |
--------------------------------------------------------------------------------


Nordecon International is a group of construction companies whose core business
is general contracting and construction management in the construction of
buildings and infrastructures in Estonia, Latvia, Lithuania and Ukraine. In
addition, in Estonia our companies act as independent contractors in road
construction and maintenance, environmental engineering, the assembly of
reinforced concrete elements, and the performance of cast-on-site concrete
works. The parent of the Group is Nordecon International AS, a company
registered and located in Tallinn, Estonia. In addition to the parent company,
there are more than 20 subsidiaries in the Group. The consolidated revenue of
the Group in 2008 was 3.9 billion kroons (247 million euros) and the
consolidated net profit was 171 million kroons (11 million euros). Nordecon
International Group employs more than 1,000 people. Since 18 May 2006, the
company's shares have been quoted in the main list of the NASDAQ OMX Tallinn
Stock Exchange. 

1 euro = 15.6466 kroons


Raimo Talviste
Nordecon International AS
Head of Finance and Investor Relations
Tel: +372 615 4445
Email: raimo.talviste@nordecon.com 
http://www.nordecon.com