TECHNOPOLIS PLC   STOCK EXCHANGE RELEASE   March 26, 2010 at 12.45
p.m.


Technopolis Expands into Estonia

Technopolis has concluded an
agreement with the Tallinn-based Smart City Group
As and its subsidiary
Ülemiste City As to establish a joint venture. The joint
venture will be
formed by Technopolis acquiring a majority holding in a company
to be founded
and owned by Smart City Group As. The new company, to be named
Technopolis
Ülemiste, will have a property portfolio comprising approximately
70.000
square meters of space currently held by Smart City Group As
subsidiary
Ülemiste City As located next to Tallin International Airport.
Approximately
47.000 square meters of the space consists of modern office
buildings ranging
from 1-5 years in age. 

The pro forma enterprise value of
the Technopolis Ülemiste joint venture (to be
founded) is estimated at MEUR
63,5 with loans totaling MEUR 44. The company's
estimated full-year net sales
is expected to total MEUR 4,75 and its estimated
EBITDA will be approximately
4 million euros. Pro forma figures have been
formulated on the basis of the
financial statements as of the end of the
previous fiscal year. Technopolis'
investment in the venture totals MEUR 9,93,
including an earn-out payment
totaling MEUR 0,5 which will be based on the
achievement of commercial targets
over the next two years. 

Technopolis Group will have a 51 % holding in the
Technopolis Ülemiste joint
venture, while the remaining 49 % interest will be
held by Smart City Group
subsidiary Ülemiste City As. Technopolis Ülemiste
will have a roughly 10% share
of the Tallinn office space market. The impact
of the agreement on Technopolis
Plc sales and earnings will depend on how long
it takes to complete the closing
of the deal. Once the deal has closed
Technopolis Ülemiste will become a part
of the Technopolis Group.


”Technopolis Ülemiste will be our first international acquisition and lays
an
excellent foundation for further growth in Estonia. The Technopolis
growth
strategy calls for establishing operations in 2-3 new countries outside
Finland
by the year 2014”, says Technopolis Executive Chairman Pertti
Huuskonen. 
 
”By partnering with a professional team with a proven track
record we will gain
swift access to the Tallinn market. With a world class
team, infrastructure and
customer base, Technopolis Ülemiste center already
meets our selection
criteria”, says Technopolis CEO Keith Silverang 

The
final execution of the deal within the planned framework depends on
the
approval of due diligence and joint venture financing procedures.
Assuming
these procedures are successfully concluded, we estimate that the
closing will
take place in June of 2010. 

TECHNOPOLIS PLC

Keith
Silverang
CEO


For more information, please contact: 
Executive Chairman
Pertti Huuskonen, +358 46 712 0065
CEO Keith Silverang, +358 40 566
7785


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