Tallinna Börs                 NEWS RELEASE                      12/24/2003



COMMITTEE'S DECISION ON HANSAPANK



DECISION OF LISTING AND SURVEILLANCE COMMITTEE OF TALLINN STOCK EXCHANGE 

ON VIOLATION OF REQUIREMENTS FOR MEMBERS OF EXCHANGE BY AS HANSAPANK



At its meeting of 18 December 2003, the Listing and Surveillance Committee of 

the Tallinn Stock Exchange reviewed the circumstances identified and 

materials collected in the course of supervisory proceedings carried out with 

respect to AS Hansapank (hereinafter "Hansapank") in relation to the share 

issue of AS Klementi. 



The Listing and Surveillance Committee of the Stock Exchange, having examined 

the circumstances identified and materials collected in the course of the 

supervisory proceedings carried out with respect to the activities of 

Hansapank,



established the following.



1. By its activities in carrying out the Klementi share issue, Hansapank has 

violated the obligation arising from clause 7.5.2 of the "Membership Rules" 



part of the TSE Rules and the requirements for providing equal information to 

investors. Also, the activities of Hansapank employees have deviated from the 

good practice of the securities market on several occasions, constituting a 

violation of clause 2.8.1 of the "General Part" of the TSE Rules.



2. Violation by Hansapank of its obligations has been evidenced, as assessed 

by the Listing and Surveillance Committee of the Stock Exchange, by the 

circumstances identified in the course of the supervisory proceedings carried 

out by the Stock Exchange.



3. There are no objective circumstances which would have prevented Hansapank 

from duly performing its obligations.



4. There are sufficient grounds to apply the legal remedies within the 

competence of the Stock Exchange to Hansapank.



Proceeding from the above and based on "Stock Exchange Membership Agreement" 

between the Stock Exchange and Hansapank, § 160 of the Securities Market Act, 

clause 4.6.1 of the "Membership Rules", clauses 4.1.1.1, 4.3.1 and 4.8.2 of 

the "Supervision" and clause 3.6 of the "Rates of Fines" part of the TSE 

Rules, the Listing and Surveillance Committee of the Stock Exchange



decided:



1. to impose a fine of fifty thousand (50,000) kroons on Hansapank; 



2. to give a warning to Lauri Lind, attested broker of Hansapank;



3. to require Hansapank to take appropriate measures to duly comply with the 

obligations arising from the TSE Rules, legislation, and the good practice of 

the securities market in the future;



4. to require Hansapank to add to its internal rules so as to ensure 

enforcement of the principles described herein by 1 March 2004 at the latest.



Furthermore, the Listing and Surveillance Committee of the Stock Exchange 

calls Hansapank’s attention to the need to perform its obligations under the 

Rules and Internal Rules more carefully. According to the opinion of the 

Listing and Surveillance Committee, a Stock Exchange member’s obligation to 

have regard to the reliable and regular functioning of the securities market 

requires that performance of the member’s obligations be organised so that 

besides the essential lawfulness of its activities, it gives no reason to 

consider the member’s activities as being or seeming to be contrary to the 

good practice of the securities market.



The Listing and Surveillance Committee of the Stock Exchange hereby informs 

Hansapank of its right to contest this decision of the Committee and refer 

the dispute for settlement to the Stock Exchange Arbitration Court. According 

to clause 4.8.4 of the "Supervision" part of the TSE Rules, the filing of an 

action with the Stock Exchange Arbitration Court does not exempt Hansapank 

from payment of the fine by the deadline hereby set.



This decision is subject to disclosure according to the procedure set out in 

clause 4.8.12 of the "Supervision" part of the TSE Rules.



The decision together with a summary of the supervisory proceedings conducted 

by the Stock Exchange shall be forwarded to the Financial Supervision 

Authority in accordance with clause 4.8.13 of the "Supervision" part of the 

TSE Rules.





Tallinn Stock Exchange

Market Services

+372 640 8802