ANNUAL RESULT OF SRV IS EXPECTED TO BE LOWER THAN IN THE PREVIOUS YEAR – ARBITRAL AWARD RELATED TO THE SALE OF A HOTEL IN RUSSIA IS NEGATIVE FOR SRV

ANNUAL RESULT OF SRV IS EXPECTED TO BE LOWER THAN IN THE PREVIOUS YEAR -        
ARBITRAL AWARD RELATED TO THE SALE OF A HOTEL IN RUSSIA IS NEGATIVE FOR SRV     

SRV Russia Oy and SRV International Oy (together “SRV”), subsidiaries of SRV    
Group Plc, have been engaged as defendants in arbitration proceedings in the    
Arbitration Institute of the Stockholm Chamber of Commerce, where the claimant  
has been the Danish company Nordrus Hotel Holdings A/S (”Nordrus”). The matter  
related to the construction of a hotel property for Nordrus. Nordrus did not    
take possession of the hotel and did not remit the purchase price.              
                                                                                
SRV has now been informed of the arbitral award in the matter. According to the 
decision of the arbitral tribunal SRV is obligated to pay damages of USD 13.2   
million together with interest as of December 31, 2006. In addition, the        
arbitral tribunal has obligated SRV to pay the legal fees and costs of the      
claimant. SRV books as expenses approximately 11.1 million euros.               

The decision of the arbitral tribunal means, however, that the ownership of SRV 
to the hotel property is confirmed. The company believes that that the increase 
in value of the property, and income from the possible sale thereof, will cover 
a considerable portion of the damages awarded by the arbitral tribunal.         

As a result of the arbitral award the 2007 results of operations of SRV are     
expected to be clearly lower than in the previous year.                         

SRV expects its annual turnover for 2007 to amount to approximately 550 million 
euros. The order book is expected to amount to approximately 540 million euros  
as of December 31, 2007.                                                        

SRV Group Plc                                                                   


Additional Information:                                                         
Hannu Linnoinen                                                                 
Senior Executive Vice President                                                 
Telephone: +358 201 45 5990                                                     

Distribution:                                                                   
The Helsinki Stock Exchange                                                     
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