Merko Ehitus                  NEWS RELEASE                      12/29/2003



SUCCESSFUL DECLARATION OF TENDER



According to the decision (17 December 2003) of Tallinn City Government

the tender of AS MERKO EHITUS was declared successful as regards the

preliminary construction right negotiations of building grounds Saviliiva

tee 8A (area  43 021 m2) and Vabaõhumuuseumi tee 95B (area 73 580 m2).

AS Merko Ehitus shall construct up to 225 single-family houses and

apartments on these building grounds. The weighted average price per square

meter of a constructed building in the tender was 11 544 EEK (738 EUR).





Marko Pern

Financist

Tel. +372 6 805 130