Hüvitusfond                   FINANCIAL RESULTS                 10/29/2002



FINANCIAL RESULTS, 9 MONTHS 2002



Commentary to unaudited financial results, 9 months 2002



Compensation Fund’s unaudited profit before new

obligation issues in 9 months 2002 was 47,6 million

kroons (3 million EUR).



In the nine months of 2002 Compensation Fund earned

interest income 54,5 million kroons (3,5 million EUR).

Interest expense was 7,4 million kroons (0,5 million

EUR). Net interest income was 47,1 million kroons (3

million EUR) compared to 59,6 million kroons (3,8 million

EUR) in 9 months of 2001.



Profit from trading securities (stocks traded on stock

exchange and shares of money market and interest funds)

was 11,8 million kroons (0,8 million EUR) compared to 1,9

million kroons (0,1 million EUR) in 9 months of 2001.



Profit from investment securities (bonds, publicly not

traded stocks) was 8,3 million kroons (0,5 million EUR)

in 2002 compared to profit of 7,8 million kroons (0,5

million EUR) in 2001.



Provisions decreased by 2,9 million kroons (0,2 million

EUR), compared to 13 million kroons (0,8 million EUR)in 9

months of 2001.



Fund’s operating profit was 63,3 million kroons (4

million EUR) compared to 71,2 million kroons (4,5 million

EUR) in 2001.



Loss from subsidiaries amounted to 15,7 million kroons (1

million EUR), compared to the loss of 13,3 million kroons

(0,8 million EUR) in 9 months of 2001.



Fund’s net profit was 47,6 million kroons (3 million EUR)

compared to 57,9 million kroons (3,7 million EUR) in 1st

half 2001.



Fund’s assets decreased in 9 months of 2002 by 110

million kroons (7 million EUR) due to redemption of bonds

in the amount of 155 million kroons (9,9 million EUR).



Fund’s owner’s equity on September 30, 2002 was 1 156

million kroons (73,9 million EUR). Compared to the end of

2001 it increased by current year’s profit.



Compensation Fund’s financial year 2002 ends due to the

start of liquidation process on November 21, 2002 after

the redemption of all publicly traded bonds on November

20, 2002. Year-end balance sheet of financial year and

liquidation balance sheet will be drawn as of November

21, 2002.



Compensation Fund’s last outstanding bonds (obligations

of series VIII and XVII) in amount of 91,98 million

kroons will be redeemed on November 20, after what

Compensation Fund will no longer publish its

announcements on Tallinn Stock Exchange. Announcements

concerning liquidation process of Compensation Fund will

be published on Fund’s homepage <a href='http://www.hf.ee' target='_blank'>http://www.hf.ee</a> and by press

releases that will be sent to news departments of major

news agencies, newspapers, radio and TV stations.





Jaanus Kosemaa

head of public relations

6651800, 05104614





Balance Sheet                                              

(in thousands, EEK, EURO)                                  

unaudited

                                                           

ASSETS                     30.09.2002 30.09.2002 31.12.2001 31.12.2001

                                                                

                                   EEK      EURO       EEK      EURO

1. Cash and bank accounts      396 547    25 344   267,882    17,121

2. Trading securities          257 066    16 429    72,644     4,643

3. Loans and other              97 088     6 205   229,715    14,681

receivables

4. Investment securities       370 149    23 657   530,451    33,902

5. Investments in              114 067     7 290   235,838    15,073

subsidiaries

6. Tangible assets                 863        55     1,329        85

7. Intangible assets                 3         0         6         0

8. Other assets                 21 235     1 357    28,808     1,841

Total assets                 1 257 018    80 338 1,366,673    87,346

                                                           

LIABILITIES AND OWNER’S                                    

EQUITY

Liabilities                                                

9. Obligations issued to the    91 806     5 867   242,478    15,497

public

10. Other liabilities            8 579       548    15,220       973

Total liabilities              100 385     6 416   254,068    16,238

Owner’s equity                                             

11. State’s capital          1 626 243   103 936 1,626,243   103,936

12. Retained earnings         -517 268   -33 059  -581,803   -37,185

13. Profit from the current     47 657     3 046                    

accounting period                                   64,535     4,125

Total owner’s equity         1 156 633    73 922 1,108,975    70,876

Total liabilities and        1 257 018    80 338 1,366,673    87,346

owner’s equity





Income Statement                                          

01.01.2002-30.09.2002                                     

(in thousands, EEK, EURO)

unaudited

                               30.09.02 30.09.02 30.09.01  30.09.01

                                                           

                                    EEK     EURO      EEK      EURO

1. Interest income               54 530    3 485   77 980     4 984

2. Interest expense              -7 434     -475  -18 373    -1 174

3. Interest income, net          47 096    3 010   59 607     3 810

4. Net result from trading       11 793      754    1 962       125

securities

5. Net result from investment     8 275      529    7 807       499

securities

6. Dividends                      1 831      117    1 712       109

7. Other income                   1 036       66    4 370       279

8. Operating expenses            -9 584     -613  -13 662      -873

9. Other expenses                   -24       -2   -3 628      -232

10. Provisions                    2 914      186   13 003       831

                                                   

11. Operating profit             63 338    4 048   71 171     4 549

12. Profit/loss from            -15 681   -1 002  -13 282      -849

subsidiaries

13. Net profit                   47 657    3 046   57 889     3 700





Jaanus Kosemaa

head of public relations

6551800, 05104614