EESTI ÜHISPANK

ANNOUNCEMENT



THE MERGER OF ÜHISPANGA ELUKINDLUSTUS AND LEKS ELUKINDLUSTUS



Pursuant to the  Registry Department of  Tallinn City Court  ruling of

24 December 1999  AS Ühispanga Elukindlustus,  the life assurance  arm

of Eesti Ühispank,  has merged with  Leks Elukindlustus AS  (Leks Life

Assurance Ltd). The merger became  effective on 27 December 1999  upon

its entry on the registry card of Ühispanga Elukindlustus.   Ühispanga

Elukindlustus has taken  over all the  rights and obligations  of Leks

Elukindlustus as they are.



The merger does  not affect clients.  Contrary to the  recent practice

of portfolio  transfers on  the Estonian  insurance market,  Ühispanga

Elukindlustus will fully honor  the contractual rights of  the clients

of Leks Elukindlustus, and all the existing life assurance  agreements

are  in  full  force  and  effect  unchanged.  The  databases  of both

companies have been successfully linked already.



In December  1999 the  premium income  of Ühispanga  Elukindlustus was

EEK 930 000, up  to 98 per cent  in regular premiums. In  December the

premium  income  of  Leks  Elukindlustus  was EEK1.7m. The last year’s

total premium  income of  the merged  companies amounted  to EEK19.7m.

Despite a  slump in  the Estonian  insurance market  as a  whole, both

insurance  companies  outperformed  their  sales  and  premium  income

targets.



The merged life  assurance companies carry  on their operations  under

the name  of AS  Ühispanga Elukindlustus.  Ühispanga Elukindlustus  is

fully owned by Eesti Ühispank.



Further information:



Indrek Holst

Management Board Chairman

AS Ühispanga Elukindlustus

Phone: +372 6 656 840





Urmas Neetar

head of reporting dept.

6 656 390