16.02.2004, Trigon Property Development, TLN

Viisnurk                      NEWS RELEASE                      02/16/2004



INITIATION OF DIVESTMENT PROCESS



Following the supervisory board decision of January 22, 2004, AS Viisnurk

has initiated the process of divesting its Buildings Materials Division

and Sporting Goods Division in order to strengthen the company’s ability

to focus on its core activity - furniture business. AS Viisnurk is

looking to sell both divisions in their entirety by way of asset sale

(together with operations). AS Viisnurk has retained investment bank AS

Trigon Capital to advise the company on the sale process.



AS Viisnurk’s Building Materials Division produces and markets two

softboard based product categories: insulation and interior finishing

boards for ceilings and walls.



Summarised Income Statement: Building Materials Division



EUR, th                1998     1999     2000    2001     2002   2003 9m

Net sales             3,881    4,034    4,618   4,595    5,102     4,365

Growth yoy %          7.21%    3.95%   14.47%  -0.50%   11.04%       N/R

                                                                    

EBITDA                1,139    1,013    1,366   1,474    1,277       N/A

EBITDA margin %         29%      25%      30%     32%      25%       N/A

                                                                    

Depreciation             96      101      128     158      182       N/A

Operating profit      1,043      912    1,237   1,316    1,094     1,016

Operating margin %      27%      23%      27%     29%      21%       23%

EEK/EUR exchange rate 15.6466



AS Viisnurk’s Sporting Goods Division’s activities include three areas of

operations: the production and marketing of cross-country skis and hockey

sticks and the distribution of various sports and recreational goods.



Summarised Income Statement: Sporting Goods Division



EUR, th                1998     1999     2000    2001     2002   2003 9m

Net sales             4,492    4,644    6,316   5,534    5,311     2,787

Growth yoy %           -24%       3%      36%    -12%      -4%       N/R

                                                                             

EBITDA                  653      717      939     613     -691       N/A

EBITDA margin %         15%      15%      15%     11%     -13%       N/A

                                                                             

Depreciation             79      132      182     257      299       N/A

Operating profit        574      585      757     356     -990      -275

Operating margin %      13%      13%      12%      6%     -19%      -10%



EEK/EUR exchange rate 15.6466



The sale of the divisions does not include any transfer of interest

bearing debt.



Additional information on the divisions and an invitation to participate

in the sale process is available from the HEX Tallinn’s web page

(http://www.hex.ee/?id=2932) and from AS Trigon Capital. An Information

Memorandum on the divisions will be compiled and distributed to potential

bidders who have expressed their interest and who have been accepted by

AS Viisnurk. It is estimated that the distribution of the Information

Memorandums will take place in the following order:



     -  Building Materials Division: week starting on March 8, 2004

     -  Sporting Goods Division: week starting on March 29, 2004



All potential bidders are expected to submit their non-binding indicative

tender bids three weeks after the distribution of the Information

Memorandum. The process of selling the Building Materials Division and

the Sporting Goods Division is targeted to be finalised within a three to

six month period.





Expressions of interests and other queries and information requests

regarding the sale process should be forwarded to:



AS Trigon Capital

Pärnu mnt 15

10141 Tallinn

Estonia



Contact      Amish Mody

person:

Email:       amish@trigoncapital.com

Phone:       +372 6679 200

Fax:         +372 6679 201





Direct link to the invitation to the buy-out and additional information

on the divisions on HEX Tallinn home page:



     -    Building Materials Division:

       <a href='http://files.hex.ee/bors/prospekt/vnu/Invitation' target='_blank'>http://files.hex.ee/bors/prospekt/vnu/Invitation</a> BMD.pdf

     

     -    Sporting Goods Division:

       <a href='http://files.hex.ee/bors/prospekt/vnu/Invitation' target='_blank'>http://files.hex.ee/bors/prospekt/vnu/Invitation</a> SGD.pdf





Andrus Aljas

Business Controller

+3724478355