Market announcement

Title

Notice to convene the Annual General Meeting of Shareholders

Message

The  Management Board of  AS TALLINNA VESI  (registration number 10257326, Ädala
10, 10614 Tallinn) (hereinafter also "the Company") announces that the Company's
Annual General Meeting of Shareholders shall be held on Thursday, 31st May 2018
at  09.00 (GMT+3)  at  the  Hotel  Euroopa  (Paadi  5, 10151 Tallinn)  2nd floor
conference  room "Lääne-Euroopa".  Registration of  participants of  the meeting
will  start on 31st May 2018 at 08.30 am (GMT+3) at the location of the meeting.
Registration  will end at 9.00 (GMT+3). We kindly ask all shareholders and their
representatives  to arrive in time, taking into  account the time needed for the
registration of participants.

The  agenda for the Annual General Meeting  has been approved by the Supervisory
Council with the following proposals:

1.       Approval of the 2017 Annual Report

Supervisory Council's proposal:

To  approve  the  2017 Annual  Report  including  the balance sheet total in the
amount of EUR 228,408,000 (two hundred and twenty-eight million four hundred and
eight thousand) and net profit in the amount of EUR 7,221,000 (seven million two
hundred and twenty-one thousand).

2.       Distribution of profit

Supervisory Council's proposal:

The  net  profit  of  the  Company  in  2017 is EUR 7,221,000 (seven million two
hundred and twenty-one thousand). To distribute EUR 7,200,600 (seven million two
hundred thousand and six hundred) of AS Tallinna Vesi's retained earnings of EUR
47,804,000 (forty   seven  million  eight  hundred  and  four  thousand)  as  of
31.12.2017, incl.  from  the  net  profit  of  EUR  7,221,000 (seven million two
hundred  and twenty-one thousand) for the  year 2017, as dividends, of which EUR
0.36 (zero  point thirty-six) per  share shall be  paid to the  owners of the A-
shares  and EUR 600 (six hundred) per share shall be paid to the owner of the B-
share.  Remaining retained  earnings will  remain undistributed  and allocations
from the net profit will not be made to the reserve capital.

Based  on  the  dividend  proposal  made  by  the  Management Board, the Council
proposes  to  the  general  meeting  to  decide  to pay the dividends out to the
shareholders  on 26th June  2018. The list  of shareholders  entitled to receive
dividends  will be established  as at 14th June  2018 at the closure of business
day  of the  settlement system.  Consequently, the  day of  change of the rights
related  to the  shares (ex-dividend  date) is  set to  13th June 2018. A person
acquiring  the shares  from 13th June  2018 onwards will  not have  the right to
receive dividends for the financial year 2017.

3.       Recalling of Mr. Rein Ratas from the Supervisory Council of AS Tallinna
Vesi

Supervisory Council's proposal:
To recall Mr. Rein Ratas from the Supervisory Council of AS Tallinna Vesi.

4.       Extension  of the term of Supervisory Council members and election of a
new Supervisory Council member

4.1. Extension  of  Mr.  Simon  Roger  Gardiner's  term as a Supervisory Council
member of AS Tallinna Vesi from 3rd June 2018.

Supervisory Council's proposal:
To  extend Mr. Simon Roger Gardiner's term as a Supervisory Council member of AS
Tallinna Vesi from 3rd June 2018.

4.2. Extension of Mr. Martin Padley's term as a Supervisory Council member of AS
Tallinna Vesi from 2nd November 2018.

Supervisory Council's proposal:
To  extend  Mr.  Martin  Padley's  term  as  a  Supervisory Council member of AS
Tallinna Vesi from 2nd November 2018.

4.3. Election  of Katrin Kendra  as a Supervisory  Council member of AS Tallinna
Vesi.

Supervisory Council's proposal:
To  elect Katrin Kendra as a Supervisory Council member of AS Tallinna Vesi from
the  adoption  of  this  resolution.  The  Council member will be remunerated in
accordance  with the  agenda item  3 of the  minutes of  the General  Meeting of
Shareholders held on 22nd November 2005.

5.       Election of the auditor

Council evaluation of the auditor's work:
AS  PricewaterhouseCoopers has provided  auditing services for  AS Tallinna Vesi
during  the financial year  of 2017 pursuant to  the agreement concluded between
the  parties in  2017. In 2018 the  Company carried  out public  procurement for
audit   services  for  the  periods  ending  31.12.2018 and  31.12.2019, with  a
possibility  to  extend  the  contract  for  the  periods  ending 31.12.2020 and
31.12.2021. As  a  result  of  the  procurement,  the  best offer was made by AS
PricewaterhouseCoopers   for  auditing  the  Company's  consolidated  integrated
report,  providing limited review service to sustainability report and providing
the audit services for the subsidiary OÜ Watercom.

Supervisory Council's proposal:
To  appoint AS PricewaterhouseCoopers as the auditor  and Mr. Tiit Raimla as the
lead  auditor for the  financial years of  2018 and 2019. To pay  the fee to the
auditor as per the offer made in the procurement.

6.       CEO update

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Shareholders,  whose shareholding represents at least 1/20 of the share capital,
may  request  for  additional  items  to  be  added to the agenda of the General
Meeting,  if the  respective request  is submitted  in writing  at least 15 days
prior to the General Meeting, i.e. by 16th May 2018 at the latest. Shareholders,
whose  shareholding represents  at least  1/20 of the  share capital, may submit
their  draft resolutions to each agenda item  in writing up to 3 days before the
General  Meeting, i.e. by the end of the day (11.59 pm, GMT+3) on 28th May 2018
at  the latest.  The process  of exercising  these rights  is published  in more
detail    on    AS    Tallinna    Vesi's    website    at    www.tallinnavesi.ee
(http://www.tallinnavesi.ee/),  where  the  draft  resolutions  and explanations
submitted by the shareholders will also be published after their receipt.

After  the agenda items of the  General Meeting, including any additional items,
have  been  exhausted,  the  shareholders  may  inquire  information  about  the
Company's  activities from the Management Board of AS Tallinna Vesi according to
the   procedure  published  on  the  Company's  website  at  www.tallinnavesi.ee
(http://www.tallinnavesi.ee/).

Background  information  regarding  the  agenda,  the  2017 Annual  Report of AS
Tallinna  Vesi, the Council report, the auditor's report, the dividend proposal,
the principles of remuneration of the auditor, the proposals for resolutions, as
well as reasoning for additional agenda items along with the proposals submitted
by  shareholders  for  resolution,  other  documents  submitted  for the General
Meeting  in  accordance  with  the  law,  and other important data regarding the
agenda, incl. data regarding Council members' candidates and auditor's candidate
are   available   on   AS   Tallinna   Vesi's   website  at  www.tallinnavesi.ee
(http://www.tallinnavesi.ee/), where you will also find an overview of documents
that  the shareholders  or their  representatives are  required to take along in
order  to be able to participate at the General Meeting (whether in person or by
proxy).

The  2017 Annual Report  of AS  Tallinna Vesi,  Council report and the auditor's
report  are also available for review on the website of NASDAQ OMX Tallinn Stock
Exchange http://www.nasdaqomxbaltic.com/.

In  case  you  have  any  questions  regarding  the  Annual  General  Meeting of
shareholders or the agenda items, please contact our Head of Communications, Ms.
Eliis  Vennik via e-mail  [email protected] or telephone +372 62 62 275. The
questions,  answers and the minutes of the General Meeting shall be published on
the Company's website. Written notices of appointing shareholder representatives
or  of withdrawing  authorizations of  representatives can  also be  sent to the
above  e-mail  address  until  the  business  day  preceding the date of General
Meeting, on 30th May 2018 at the latest.

Shareholder   representatives   are   kindly   asked  to  bring  along  a  valid
identification  document and a  valid written power-of-attorney.  In the case of
corporate  entities, we  request you  also bring  a valid  copy of your registry
card.  Each  document  issued  by  a  foreign  country's official must be either
legalized  or authenticated  with a  document certificate  apostille and  have a
notarised  translation into  Estonian attached.  Should a  shareholder require a
power-of-attorney  for  its  representative,  a  proxy  form  is available at AS
Tallinna Vesi's website under the section "Identification documents required for
attending the General Meeting".

The  list of shareholders entitled to participate at the General Meeting will be
established  as at 24 May 2018 at the closure  of business day of the settlement
system.

Eliis Vennik
Head of Communications
AS Tallinna Vesi
Tel: (+372) 62 62 275
[email protected]