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New Strategic Way Forward

24.10.2008 20.00,

TPD: New Strategic Way Forward

October 24, 2008

Herewith AS Trigon Property Development (TPD) announces that due to significant changes in the financial and property market conditions over recent months, and the very uncertain outlook going forward, which substantially complicates estimating fair values for property assets, the previously announced plans (stock exchange release December 12, 2007) have to be changed. Accordingly it has been decided not to proceed with folding the Gate Tallinn project into TPD in order to avoid any potentially unfair dilution and to secure the best interests of TPD and its shareholders.

As a result, the management will not call an Extraordinary Shareholders' Meeting to obtain shareholder approval for the share issue, which was previously planned to be structured so as to fold the Gate Tallinn project into TPD. Instead, TPD will continue to operate its current real property assets focusing on extracting maximum shareholder value from the Niidu land area, the company’s current single large-scale property investment project of 40ha in Pärnu city, Estonia. This decision, in the view of TPD management, is in the best economic interests of the company and its shareholders given the current market conditions.

The cancellation of the plans related to folding the Gate Tallinn project into TPD also means that the potential buy-out offer for minority shareholders will not take place as it was conditional on the previously intended share capital increase related to the Gate Tallinn project being effected (stock exchange release on December 20, 2007).

In regards to the Niidu project in Pärnu, TPD management is working on establishing the optimal development strategy for the area given the current market environment. Once a development strategy has been selected which is in the best interest of TPD, further announcements will be made through stock exchange releases.

Ülo Adamson

Chairman of the Supervisory Board

Investor relations

+372 6679 200