Merko Ehitus                  NEWS RELEASE                      03/23/2004



NEW BOARD MEMBER



At the Supervisory Board meeting of AS Merko Ehitus held on March 22, 2004,

director of the company's residential building division, Mr Jaan Mäe, was

elected as the fourth member of the Board. 



Jaan Mäe commences his duties as a member of the Board on April 1, 2004,

and will be in charge of the building and development activities of

AS Merko Ehitus.



Jaan Mäe has been in Merko Ehitus since 1997, the last three years of which

he has headed the residential building division.



Jaan Mäe graduated from Tallinn Technical University in 1991 holding

a degree in industrial and civil engineering.



Mr Mäe does not own shares of AS Merko Ehitus.





Tõnu Toomik

Chairman of the Board

+372 6 805 105