Conclusion of agreements for sale and cancellation of share options between AS Starman and members of the management board


On Thursday, 19 June 2008, AS Starman concluded agreements on purchase and      
cancellation of share options with members of the management board Peeter Kern, 
Rändy Hütsi and Henri Treude („Sale Agreements“). The agreements were concluded 
due to the changes in the structure of shareholders of AS Starman after the     
takeover bid, and due to the review of the motivation programme of the          
management board members as a result of such changes.                           

According to the option agreements concluded on 2 June 2005, the management     
board at the moment owns 20 000 call options (ISIN code EE3700080692). Each call
option („Option“) grants a right to subscribe for 30 shares of AS Starman,      
whereas the Options may be exercised in three series with two-year exercise     
periods starting on 1 July 2006. The exercise period of the last Options expires
on 30 June 2010.                                                                

The strike price for the first series of Options is the volume weighted market  
price of AS Starman shares for the 3rd to 8th week after the Initial Public     
Offering of the shares + 15%; for the second series of Options - the volume     
weighted market price of AS Starman shares for the 1st quarter of year 2006 +   
15%; and for the third series of Options - the volume weighted market price of  
AS Starman shares for the 1st quarter of year 2007 + 15%. Upon grant of Options,
fringe benefit taxes were paid according to Estonian tax laws.                  

According to the Sale Agreements, all members of the management board sell the
above-mentioned Options to AS Starman. The Parties may close the Sale Agreements
in several parts and on several dates. After the Options have been transferred, 
AS Starman undertakes to take all necessary actions to cancel the Options.      

The aggregate purchase price payable by AS Starman for all Options is 828 917,38
EUR. The purchase price has been calculated based on the price of the takeover  
bid announced on 29 October 2007 and the strike price of the Options. As a      
result of the transaction, the assets and the equity of AS Starman will decrease
by the amount of the purchase price payable to the management board members.    

The supervisory board of AS Starman approved the transactions on 19 June 2008.  

Additional information:                                                         
Peeter Kern                                                                     
+3725016113