EESTI TELEKOM

ANNOUNCEMENT



EESTI TELEFON TO ESTABLISH A SUBSIDIARY



The Supervisory Board of AS Eesti Telefon authorized the company's 

Management Board to establish a separate subsidiary, which main area 

of activity will be construction and maintenance of telecommunication 

networks.



The subsidiary will be established in order to enable the Eesti 

Telefon telecommunications networks sub-unit to focus on its core 

business, which is development of strategies, and development and 

management of networks. Eesti Telefon will transfer the non-strategic 

activities, such as construction and maintenance of telecommunication 

networks, to its subsidiary. The new company will employ approximately 

500 people.



The new subsidiary will be a separate legal entity with EEK 15 

million share capital. Eesti Telefon has started to prepare the 

establishment documents of the new subsidiary, and the company should 

start operating in January 2001.





Raul Kalev

PR manager

+372 6460 220