EESTI POST                  FINANCIAL RESULTS              29.08.2005



UNAUDITED ECONOMIC RESULTS FOR 1st HALF OF 2005



The profit for the first half of the year increased to MEEK 23.7.



Owing  to the company-wide management reform and more active sale  of

services, AS Eesti Post earned a net profit of MEEK 23.7 in the first

half-year, which is 18.3% more than in the same period last year.



“Completion  of  the management reform which was launched  last  year

resulted in an improved management quality and stricter cost control;

this  is  reflected in the good economic results for the first  half-

year,” said Peeter Raudsepp, Chairman of the Management Board  of  AS

Eesti Post.



“Although certain expenses like transport have  inevitably  increased 

due to growing fuel prices, whereas the tariff of a simple letter has

stayed  the  same  for  the past five years, we  have  been  able  to

increase  our  profits owing to better and more systematic  sales  to

corporate customers,” said Leon Jankelevitsh, Management Board Member

for Financial Issues.



The business income  of AS Eesti Post  increased  in  all  the  major 

service segments by a total of 7.8% compared to the first half of 2004, 

reaching  MEEK 359.5.  Postal services continue to be  the  company’s

largest  service, accounting for 40% of the business  income.  Postal

services grew by 10.8%, from MEEK 130.3 in the first half of 2004  to

MEEK  144.5. The second largest source of income is express  services

which account for 20.4% of the company’s business income. Income from

express  services grew by 12.8% over the year, mainly  owing  to  the

rapid growth of income from ELS Ekspress services: 34.1%.



Income  growth has been the fastest in direct marketing, where income

increased  by 16% compared to the same period last year and  exceeded

MEEK   70.   This  segment  includes  deliveries  of  addressed   and

unaddressed  advertisements and deliveries of and  subscriptions  for

periodicals.



The business expenses of AS Eesti post amounted to MEEK 330 in the first

half-year, exceeding those of the same period last year by MEEK 23 or

7.4%.



Labour expenses continue to be the company’s largest expense category,

forming  59.1% of business expenses; the relevant figure was 59.9%  a

year ago. Labour expenses have increased by 5.9% compared to the same

period  last year, reaching MEEK 195.2. The price rise of motor  fuel

has  played a major role in the increased expenses, being one of  the

main  reasons behind the 15% increase in the domestic postal delivery

costs.



The company’s net profit for the first half of this year was MEEK 23.7,

compared to MEEK 20 for the same period last year.



During the first half of 2005, the company paid out dividends of MEEK

15.3; the related income tax was MEEK 4.8.



AS  Eesti Post is a state-owned company whose main business comprises

postal  and communication services. The Eesti Post group consists  of

AS  Eesti  Post  as  the parent company and the subsidiary  AS  Eesti

Elektronpost, in which AS Eesti Post holds 50.86%.

The  bonds of AS Eesti Post have been listed on the bonds list of the

Tallinn Stock Exchange since 11 July 2003.









Balance Sheet



                        ‘000 EEK              ‘000 EUR

                      30.06.2005 31.12.2004 30.06.2005   31.12.2004

ASSETS

Current assets

Cash and bank            237 446    222 858     15 176       14 243

Claims and prepayments    84 920     79 035      5 427        5 051

Inventories               12 490     14 037        798          897

TOTAL CURRENT ASSETS     334 855    315 930     21 401       20 192



Fixed assets

Long-term claims and       1 105      1 189         71           76

rental prepayments

Real estate investments   10 702     10 879        684          695

Tangible assets          307 282    321 293      9 639       20 534

Intangible assets          6 590      4 646        421          297

TOTAL FIXED ASSETS        25 679    338 008     20 815       21 603



TOTAL ASSETS             660 535    653 938     42 216       41 794



LIABILITIES AND EQUITY CAPITAL

Current liabilities

Debt obligations          56 073     21 368      3 584        1 366

Sums received for        135 134    121 497      8 637        7 765

payment of state

subsidies

Trade payables and        98 157    102 478      6 273        6 550

other debts

Total current            289 364    245 343     18 494       15 680

liabilities

Non-current liabilities

Long-term                 63 951    109 564      4 087        7 002

debt obligations

Other long-term debt         723        911         46           58

Total non-current         64 673    110 475      4 133        7 061

liabilities

TOTAL LIABILITIES        354 037    355 818     22 627       22 741



Owners’ equity

Capital owned by

owners of

parent company

Share capital            245 873    245 873     15 714       15 714

Reserves                  11 467     10 002        733          639

Retained                  23 264     10 722      1 487          685

earnings

Profit for the financial  23 727     29 307      1 516        1 873

year (share belonging to

parent company)

Total capital owned      304 330    295 903     19 450       18 912

by owners of

parent company

Minority shareholding      2 167      2 217        139          142

TOTAL OWNERS’ EQUITY     306 497    298 120     19 589       19 053



TOTAL LIABILITIES AND    660 535    653 938     42 216       41 794

OWNERS’ EQUITY







 Income Statement



                         ‘000 EEK               ‘000 EUR

                             2005       2004        2005        2004

                         6 months   6 months    6 months    6 months

 Business income

 Sales income             345 312    320 198      22 069      20 464

 Subsidies received         7 940      6 961         507         445

 Other business income      6 227      6 274         398         401

 Total business income    359 478    333 433      22 975      21 310



 Business expenses

 Goods, raw material       73 555     56 928       4 701       3 638

 and services

 Other business expenses   44 433     43 036       2 840       2 751

 Labour expenses          195 196    184 389      12 475      11 785

 Depreciation and value    16 253     22 378       1 039       1 430

 reduction of fixed assets

 Other business expenses      988        971          63          62

 Total business expenses  330 424    307 702      21 118      19 666



 Business profit           29 054     25 732       1 857       1 645



 Financial income and expenses

 Interest income            1 390        866          89          55

 Interest expenses         -2 405     -2 620        -154        -167

 Gain (loss)                  568        241          36          15

 from exchange rate fluctuations

 Other financial income       -98        -96          -6          -6

 and expenses

 Total financial income      -545     -1 609         -35        -103

 and expenses



 Profit from operations    28 509     24 123       1 822       1 542

 Income tax expenses        4 832      4 181         309         267

 Net profit for            23 677     19 942       1 513       1 275

 the accounting period

 incl. parent company      23 727     20 057       1 516       1 282

 owners’ share in net profit

 Minority shareholders’       -50       -115          -3          -7

 share of net profit





 Earnings per share (including

 parent company’s share in net profit):

 Net earnings per share      9.65       8.16        0.62        0.52

 (EEK/EUR)

 Diluted net earnings        9.65       8.16        0.62        0.52

 per share (EEK/EUR)





 Inge Rumessen

 AS Eesti Post

 Communications Manager

 Phone: +372 507 0944

 inge.rumessen@post.ee