EESTI TELEKOM

ANNOUNCEMENT



NEGOTIATIONS TO TERMINATE THE CONCESSION AGREEMENT



Estonian Telephone Company and the Ministry of Transport  and Communications 

have had negotiations since May 2000 aimed on termination of the present 

Concession Agreement and replacing it with a new agreement. The reason for 

the negotiations has been the fact that special rights of Estonian Telephone 

Company will expire from January 1, 2001, the Concession Agreement would not be 

suitable for the new market situation and has to be reviewed with the purpose 

to guarantee fair competition.



There has been no essential differences in opinions between the negotiating 

parts during the process.



The counterpart of Estonian Telephone Company, the Ministry of Transport and 

Communications, found it necessary to inform the Government of Estonian of 

the situation on the negotiations and it's positions. The report was presented 

on October 17th cabinet meeting.



Estonian Telephone Company and Estonian Telecom have decided not to comment 

the issue before the end of the negotiations and signing the new agreement.





Raul Kalev

PR manager

+372 6 311 212