PRO KAPITAL

ANNOUNCEMENT



SUBSCRIPTION RESULTS



On 19.06.2000 the Management Board of Pro Kapital (registry code 

10278802, address Narva St. 13, Tallinn) approved the subscription 

results for issue of Pro Kapital shares.



In accordance with the decision of AS Pro Kapital annual general 

meeting of 11.04.2000, the shareholders decided to increase the 

company's share capital by EEK 144,000,000 through issue of new 

shares. In order to increase share capital, the shareholders agreed 

to issue 14,400,000 new nominal shares at EEK 10 par value.



Shareholders' annual general meeting set the subscription period from 

01.05. - 15.05.2000. The shareholders also authorized the Management 

Board to extend the subscription period, or to cancel the 

unsubscribed shares in accordance with the provisions of Commercial 

Code. As the issue was not fully subscribed during the initial 

subscription period, the company's Management Board decided to extend 

the subscription period until 15.06.2000.



As of 15.06.2000 the investors had subscribed for altogether 

12,308,366 shares to be issued. Management Board decided to exercise 

the right granted by 11.04.2000 AGM to cancel the unsubscribed shares 

in accordance with article 3 of §347 of Commercial Code.



After the issue AS Pro Kapital will own 85.47% of Domina Hotel e 

Comproprieta Alberghiere S.p.a shares; former shareholders of Domina 

will control 35.36% of Pro Kapital share capital. The post-issue 

volume of Pro Kapital share capital will be EEK 348,083,660. After 

registration of the issue at the Commercial Registry, investment firm 

Telom AG will obtain a substantial holding in AS Pro Kapital 

(19.20%).





Andrus Laurits

CEO, Pro Kapital

+372 6144920