EESTI TELEKOM

CASH FLOW STATEMENT



AUDITED CASH FLOW STATEMENT OF AS EESTI TELEFON 1999



ESTONIAN TELEPHONE COMPANY                                   

CASH FLOW STATEMENT                                          

                                                             

IAS, audited                                                 

EEK thous.                                                 

                                         Group               Parent Company

                                       1999        1998        1999        1998

Cash flow from operating                                               

activities

Profit before tax and minority      317,449     260,378     312,975     258,329

interest

Adjustments for:                                                       

Depreciation                        653,017     553,315     650,639     550,463

Profit(-)/Loss(+) from sales            449       3,583         444       3,583

and write-off of fixed assets

Income from subsidiaries and           -648        -448      -2,910      -2,853

associated companies

Interests calculated (income-        49,298      62,044      49,304      61,647

/expens+)(net)

Other non-cash adjustments            4,401      -4,371       4,397      -5,026

Operating profit before working   1,023,966     874,501   1,014,849     866,143

capital changes

                                                                       

 Change in current receivables     -120,865     -83,772    -113,649     -86,937

 Change in inventories              -15,189       5,260     -10,228       5,104

 Change in current liabilities      100,759     112,234      91,781     111,341

(except loans)

Adjusted cash generated from        988,671     908,223     982,753     895,651

operations

                                                                       

 Interest paid                      -53,329     -64,750     -53,275     -64,273

 Income tax paid                    -39,614     -39,098     -38,475     -38,095

Net cash flow from operating        895,728     804,375     891,003     793,283

activities

                                                                       

Cash flow from investing                                               

activities

Purchase of property, plant and    -673,307    -643,232    -672,053    -639,585

equipment

Purchase of licenses                -31,782     -19,997     -31,782     -19,997

Acquisition of a subsidiary          -6,986           0     -12,000           0

Purchase of shares of an                  0      -2,100           0      -2,100

associated company

Long-term deposit                         0        -150           0        -150

Proceeds from sales of                2,535       2,146       2,523       2,146

property, palnt and equipment

Cash receipts from loan                 753           0         103           0

repayment

Dividends received                      240          75         240          75

Interest received                     1,574       3,528       1,535       3,433

Net cash flow from investing       -706,973    -659,730    -711,434    -656,178

activities

                                                                       

Cash flow from financing                                               

activities

Repayment of nonconvertable          -7,383      -8,382      -7,383      -8,382

long-term debt

Proceeds from long-term                   0     100,000           0     100,000

borrowings

Repayment of long-term             -119,505    -114,695    -118,005    -110,195

borrowings

Payment of finance lease                -70         -70         -70         -70

liabilities

Dividends paid                     -109,505    -108,425    -109,505    -108,425

Overtaken loan from Estpak Data           0           0           0       4,500

Net cash flow from financing       -236,463    -131,572    -234,963    -122,572

activities

                                                                       

Net increase / - decrease in        -47,708      13,073     -55,394      14,533

cash and cash  equivalents

                                                                       

Cash  and cash equivalents at        71,492      58,419      66,510      51,977

beginning of year

Cash and cash equivalents at         23,784      71,492      11,116      66,510

end of year





Raul Kalev

PR-manager

+372 6460 220