Corporate Governance Report

Starting from January 1, 2006 the companies whose shares have been admitted to trading on the regulated market operating in Estonia shall describe, in accordance with the ‘Comply or Explain’ principle, their management practices in a Corporate Governance report and confirm their compliance or not with the Corporate Governance recommendations. If the issuer does not comply with the Corporate Governance Recommendations, it shall explain in the report the reasons for its non-compliance.

AS Tallinna Vesi is committed to high standards of corporate governance for which the Management Board and the Supervisory Board are accountable to shareholders. The Company endeavors to be transparent in its ways of working, corporate disclosures and relations with shareholders. For several years, the Company has been recognized on the “Baltic Market Awards” competition organized by the Nasdaq Baltic market as a company with the best investor relations. AS Tallinna Vesi keeps regular dialogue with major shareholders with general presentations made bi-annually – a list of meetings and the presentations are available on the Company’s website. The Company also uses the Annual General Meeting to keep shareholders informed and there is an opportunity for individual shareholders to ask questions of the Management Board and Supervisory Council within the meeting.