EESTI ÜHISPANK

ANNOUNCEMENT

12.11.98

 

THE UNION BANK SOLD ITS SHARE AT THE SEESAM INSURANCE

 

Today, on November 12, the Estonian Union Bank sold its entire 20  per

cent share in  the damage insurance  company Seesam and  its entire 40

per cent share in the Life Insurance Company Seesam Life Insurance  to

the former shareholder, the Finnish insurance Group Pohjola.

 

The  purpose  of  selling  the  share  is  to  concentrate  on banking

activities.  The  bank  is  still  interested  in  the  market of life

insurance, which is a  very close field to  banking, but it wishes  to

possess a 100 per cent owned affiliate company in that field.

 

The  Union  Bank  acquired  the  share  in  the  Seesam  International

Insurance Ltd. as a  result of the merger  between the Union Bank  and

the  Póhja-Eesti  Pank  in  the  beginning  of  1997.  The  Union Bank

acquired the 40  per cent share  in the life  insurance company Seesam

Life  Insurance  in  April  1997.  The  price  of  the  transaction is

confidential according to the contract.

 

The damage  insurance company  Seesam International  Insurance Company

is as of September 1998 the eighth biggest damage insurance  companies

in Estonia, which possesses 5.2 per cent of Estonian damage  insurance

market.

 

The Union Bank  considers the co-operation  with Seesam efficient  and

sees opportunities to co-operate in the future as well.

 

The amount  of the  transaction   does not  exceed 10  per cent of the

bankĘs equity as well as equities and last yearĘs profits of both  the

companies do not  exceed the mentioned  10 per cent.  The exact amount

of the transaction is confidential according to the agreement.

 

Prior  to  the  transaction  both  the  enterprises were affiliates of

Eesti Ühispank.

 

Eesti Ühispank  confirms that  the members  of the  board of  the bank

have no interest in the Finnish Pohjola Group.

 

Additional information:

 

Jürgen Lamp

Vice President

The Estonian Union Bank

Phone: +372 6 104 300

 

Toomas Abner

Vice President

The Pohjola Group

Phone: +372 6 281 801