The City Service group will expand its activities in the Russian
communal
services market with Sberbank, the largest bank in the country. An
cooperation
agreement has been signed between the company and the bank, which
is
responsible for management of state funds allocated for communal market
reform. 

According to the agreement, a development coordination group will
be formed
consisting of 6 people - 3 representatives of City Service and
3
representatives of Sberbank. Within the following six months the group
will
prepare projects that City Service will implement together with Sberbank
in
specific cities and regions of Russia. 

“Partnership with the main bank
in Russia opens up immense opportunities for
the development of City Service
in all regions of Russia. We have always
emphasised that development in this
country is our strategic goal. The
agreement we have reached with Sberbank
will contribute to the implementation
of these goals,” Žilvinas Lapinskas,
Director General of City Service, said. 

After signing the agreement, Mr.
Lapinskas was appointed Chairman of the Board
of Directors of the subsidiary
of City Service in Russia. Part of Mr.
Lapinskas' obligations in Lithuania
will be shared by Jonas Janukėnas,
financial and administrative director of
City Service. 

The reform of communal services market in Russia that opened
the market for
private companies engaged in the maintenance of apartment
buildings began in
2005. The total area of residential buildings in Russia
amounts to more than 3
billion sq. m. 

Sberbank, the largest bank in
Russia, manages the State fund devoted to the
reform of communal services
provided to apartment buildings. Sberbank is the
largest bank in Russia with
17 regional offices, 783 branches, and more than
20,000 sub-branches. Sixty
percent of the banks' shares are owned by the
Central Bank of Russia. 

City
Service owns 33 companies operating in Lithuania, Latvia, Russia and
Ukraine.
City Service manages facilities in buildings the total area of which
is nearly
18 million sq. m. The shares of City Service are listed on the Main
List of
NASDAQ OMX Vilnius stock exchange. 

Vilius Mackonis
Public Relations
Officer
+370 5 2394900