AS EESTI TELEKOM      STOCK  EXCHANGE ANNOUNCMENT         26.09.2005



Sale of AS Intergate



Elion Enterprises AS, a 100%-owned subsidiary of AS Eesti Telekom,  sold  on  20th

September 2005 50% interest in  an associated   company  AS  Intergate.  The owner

of  the remaining shares of AS  Intergate,  SEB  Eesti  Ühispank,  also  sold  its

interest in this company.



AS Intergate  was  acquired  by  the  management  of  this  company.  According to

agreement between the  contracting  parties  the  transaction  price will  not  be

disclosed.



As the strategic focus of Elion has changed it was decided to  sell the  ownership

in AS Intergate. Transition of the shares  has taken place by now. The  transition

cannot be treated as  a  transaction  with  related  party,  neither  Council  nor

Management Board of Elion Enterprises or Eesti Telekom have no  personal  interest

in the transaction.

AS Intergate (www.intergate.ee) was established in  2000  to  develop  value-added

and popular Internet environments for customers and  businesses.  The  most  well-

known projects of Intergate were an insurance broker  E-Insurance  (E-Kindlustus),

a  leading  real  estate  portal  CiTY24  and  IT  solutions  developer  Webmedia.

Intergate´s share capital is  30  million  kroons  (1.9  million  Euros)  and  net

profit  in 2004  5.7 million kroons (0.36 million Euros).

Elion  (www.elion.ee)  is  the  largest  telecommunications  and  IT  provider  in

Estonia. It is owned by AS  Eesti  Telekom,  listed  at  the  stock  exchanges  of

Tallinn and London (TSE:ETL/LSE:EETD). In Estonia Elion is the  market  leader  in

fixed network calls, in Internet subscriptions and data  communication  solutions,

and it has made a powerful entry into the IT market. In 2004 the consolidated  net

sales of the Elion Group were 2.679 billion kroons (171 million  Euros),  and  the

consolidated net profit was 342 million kroons (22 million Euros).  Currently  the

Elion Group employs a staff of 1473.



Hille Võrk

AS Eesti Telekom

+372 6 272 460