HÜVITUSFOND

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO Q3 FINANCIAL RESULTS



In Q3 2000 Hüvitusfond earned net income in amount of EEK 52.9 million. 



In Q3 the fund earned EEK 98.9 million in interest income, whereas 

more than half of net interest income was earned from investments in 

bonds. Interest expenses totaled EEK 29.2 million, mostly including 

interest paid on bonds. Net interest income was EEK 67.7 million (EEK 

89.1 million last year). Lower interest income was due to decreased 

interest rates and Hüvitusfond's strategy to invest in lower-risk 

instruments.



Income from trading portfolio (stock exchange listed shares and money 

market instruments) was EEK 13.8 million (EEK 26.3 million in 

previous period). Lower income was mainly due to decreased volume of

portfolio during the comparable periods.



Income from investment portfolio (bonds, less liquid shares and fund

units) was EEK 2.3 million (EEK 1.3 million in Q3 1999). Interest

income from bonds in investment portfolio is shown on interest income 

account on income statement.



Provisions for doubtful accounts totaled EEK 0.9 million, compared to 

EEK 15.6 million in Q3 1999.



In Q3 Hüvitusfond earned EEK 70.1 million of gross profit (EEK 43.3 

million in Q3 1999). In Q3 the fund saw EEK 20.3 million loss from 

subsidiaries (EEK 8.9 million loss during the same period last year). 

The loss was due to expenses related with launch of AS Werol Tehased. 

The company earned EEK 3.1 million profit from sale of shares of A/S 

Latio Nams.



Hüvitusfond's operating profit totaled EEK 52.9 million (EEK 34.3 

million in 1999). The fund did not issue bonds in Q3, hence the 

fund's net profit amounted to EEK 52.9 million.



In Q3 Hüvitusfond's total assets decreased by EEK 78.4 million due to 

redemption of bonds (total volume EEK 116.4 million). 

As of 30.09.00 the fund's owners equity stood at EEK 1,079.7 million.





Jaanus Kosemaa

PR manager

+372 66 51 800