PRO KAPITAL

ANNOUNCEMENT



ABOUT SUPERVISORY BOARD DECISIONS



On 15.11.2000 the Supervisory Board of AS Pro Kapital Grupp discussed 

the use of proceeds from sale of 50% holding in subsidiary AS Kristiine 

Kaubanduskeskus and possibilities to raise additional capital to 

launch new investment projects.



In accordance with the Management Board's proposal the Supervisory 

Board decided to use the proceeds from sale of Kristiine 

Kaubanduskeskus shares to buy back the convertible bonds issued by AS 

Pro Kapital Grupp on 31.12.1999. 



Supervisory Board authorized the company's Management Board to start 

negotiations with Preatoni Pank regarding the buy-back of convertible 

bonds.



With regard to Pro Kapital Group's new potential investment projects 

the Supervisory Board decided to authorize the Management Board to 

start negotiations with the third persons, with an aim to raise 

additional capital and to find different financing sources. 



Among the possible investment objects Pro Kapital Grupp evaluates the 

acquisition of holding in shopping center to be built on the 

territory of former VEF factory in Riga, and Domina's plans to 

acquire new hotels in Italy.



Supervisory Board also authorized the company's Management Board 

member Luca Antonio Milani to start negotiations with representatives 

of Italian Meliorbanca regarding the possibilities for issue of 

eurobonds.





Ilona Saari

PK Group, Board member

+372 614 4924