EESTI TELEKOM

CASH FLOW STATEMENT



AUDITED CASH FLOW STATEMENT OF AS EESTI MOBIILTELEFON 1999



ESTONIAN MOBILE TELEPHONE COMPANY                         

IAS, audited                                               

EEK thous.                                                 

                                         Group               Parent Company

                                       1999        1998        1999        1998

Cash flow from operating                                               

activities

Profit before income tax            599,464     499,667     595,804     497,273

Depreciation                        227,892     170,292     225,587     166,045

Pension expense                      10,343           0      10,343           0

Profit (-) from sales and write-      2,237        -131       2,210        -106

off of fixed assets

Profit (-) from affiliated                0           0     -12,312      -4,099

companies under the equity

method

Income tax paid                    -136,170     -92,064    -132,375     -90,549

Interest income                      -5,601      -6,670      -5,379      -6,515

Interest expense                      1,496       5,556       1,460       5,530

Change in short-term                -25,486     -24,326     -13,419     -25,662

receivables

Change in inventories               -22,465      -5,207     -19,066       1,360

Change in current liabilities         8,981      35,488      -4,821      33,624

Foreign exchange gains and              193         104         193          45

other non-cash adjustments

Net cash flow from operating        660,885     582,708     648,223     576,946

activities

                                                                       

Cash flow from investing                                               

activities

Proceeds from sale financial            142         121         142         121

investments

Proceeds from sale of fixed             270         371         236         283

assets

Interest received                     5,522       6,662       5,319       6,515

Dividends received                        0           0       3,460           0

Purchase of financial                  -139           0        -139           0

investments

Purchase of a subsidiary                  0     -18,594           0     -22,500

Purchase of fixed assets           -305,720    -364,415    -300,493    -361,072

Net cash flow from investing       -299,925    -375,855    -291,474    -376,652

activities

                                                                       

Cash flow from financing                                               

activities

Proceeds from short-term             56,000     232,000      56,000     232,000

borrowings

Repayment of short-term             -56,000    -280,000     -56,000    -280,000

borrowings

Interest paid                        -1,479      -5,980      -1,473      -5,980

Repayment of  borrowings             -5,507     -15,962      -5,507     -15,962

Dividends paid                     -185,000    -172,000    -185,000    -172,000

Minority contributions for                0         320           0           0

shares

Net cash flow from financing       -191,987    -241,621    -191,980    -241,941

activities

                                                                       

Net increase / - decrease in        168,974     -34,768     164,769     -41,648

cash and cash  equivalents

                                                                       

                                                                       

Cash  and cash equivalents at        86,957     121,725      79,895     121,543

beginning of year

Cash and cash equivalents at        255,931      86,957     244,664      79,895

end of year





Raul Kalev

PR-manager

+372 6460 220