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Information on the acquisition of a subsidiary

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Nordecon AS informs that in connection with the planned changes in the capital
structure of an affiliate company Embach Ehitus OÜ, Nordecon AS will hold a 51%
majority shareholding and Embach Ehitus OÜ will become a subsidiary of Nordecon
AS. Implementation of the change is subject to the approval of the Estonian
Competition Authority and will enter into force as of registration of the
respective entry in the Commercial Register. The change is expected to be
finalised in the first quarter of 2020.

Currently, Nordecon AS has a 46% holding in Embach Ehitus OÜ. After registration
of the change in the share capital, the share capital of Embach Ehitus OÜ will
be 30,000 euros, from which Nordecon AS will hold 15,300 euros and the other
shareholder Petram OÜ 14,700 euros, representing 49% of the share capital.

The revenue of Embach Ehitus OÜ according to the annual results of 2018 was
30,121,506 euros, constituting 13.48% of the consolidated sales revenue of
Nordecon for 2018, which means that the acquisition of majority shareholding can
be considered as material within the meaning of the Rules of Nasdaq Tallinn
Stock Exchange "Requirements for Issuers". The estimated effect of Embach Ehitus
OÜ becoming a subsidiary to the Nordecon AS consolidated sales revenue and
operating profit for 2020 remains below 10%.

The transaction is not regarded as a transaction between related persons within
the meaning of the "Requirements for Issuers" of the Rules of Nasdaq Tallinn
Stock Exchange and the members of the supervisory board and management board of
Nordecon AS are otherwise not personally interested in the transaction.

Overview of the circumstances relating to and the financial results of Embach
Ehitus OÜ

The economic activity of Embach Ehitus OÜ is operating as a main contractor in
the construction and project management of buildings. The activity of the
company is aimed primarily at servicing the construction and development
projects in South of Estonia.

The audited annual reports of Embach Ehitus OÜ for 2017 and 2018 have been
attached to this announcement.

The turnover and net profit of Embach Ehitus OÜ for the last three financial
years were as follows:

                    (in euros)
      2016                           2017                            2018

          Revenue                           25,840,719
                     26,862,930                  30,121,506
Net profit                             1,103,081                      409,067
                                            1,125,829

There have been no significant changes in the economic activity of Embach Ehitus
OÜ in 2019 in comparison to the previous period. The company has no loan
obligations as of 31.12.2019. Embach Ehitus OÜ is not a party to any court and
arbitration proceedings, which could have a significant effect on the company's
economic activity. As of 31.12.2019, there are no valid contracts with material
effect between Nordecon AS and Embach Ehitus OÜ.

The management board of Embach Ehitus OÜ has two members, Andres Salusaar and
Peeter Voovere. The company has no supervisory board.

Nordecon Group (www.nordecon.com
(https://www.globenewswire.com/Tracker?data=xizMDzQlcDW2l35S_AN2dW4KmaFxo5yklKLD
x_4SV9c-IaF3vyupt63IW3HwXS0sw425yhOn4UKJa1qe8Av7iA==)) includes companies
focused on project management and general contracting in the construction of
buildings and facilities. Geographically, the group companies are operating in
Estonia, the Ukraine, Finland and Sweden. The parent company of the group,
Nordecon AS, is registered and seated in Tallinn, Estonia. The consolidated
sales revenue of the group in 2018 was 223 million of euros. The Nordecon group
currently employs nearly 690 people. Starting from 18.05.2006, the shares of the
parent company have been listed in the Main List of the NASDAQ Tallinn Stock
Exchange.

Andri Hõbemägi
Nordecon AS
Head of Investor Relations
Phone: +372 627 2022
Email: [email protected]
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www.nordecon.com
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