Eesti Telekom                 NEWS RELEASE                      09/07/2004



INTENTION TO NOMINATE ELION A COMPANY WITH SMP



On September 7th, Estonian National Communications  Board

announced its intention to pronounce Elion Ettevõtted AS,

which  is  fully  owned  by  AS  Eesti  Telekom,   to   a

company  with  significant  market  power  for  the  year

2005      in     the     public     telephone     service

market,  public  leased line service market,  and  public

interconnection service market.



Elion  Ettevõtted  AS had also been  declared  for  2001,

2002,  2003  and  2004  as an operator  with  significant

market  power  in  the public telephone  service  market,

public   leased   line   service   market,   and   public

interconnection   service  market.   The   intention   to

pronounce   Elion  Ettevõtted  AS  to  a   company   with

significant  market power in the three markets  also  for

2005 is not surprising for the company.





Hille Võrk

Financial Manager

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