AS Tallinna Vesi              STOCK EXCHANGE RELEASE                    29.11.2005



AS Tallinna Vesi Loan Restructuring



AS Tallinna Vesi is pleased to announce that on 24th  November  2005  the  Company

signed amendments to its existing loan agreement with the  EBRD  and  a  new  loan

agreement with Nordea Bank Finland Plc Estonian branch for a 37.5 mln EUR  10-year

loan facility, which will be used to refinance the prepaid amount of the  existing

EBRD Loan.



EBRD loan agreement



On 28 November 2005 the Company prepaid 36.837  mln  EUR  of  its  existing  loan,

leaving the outstanding balance at 37.5 mln EUR, which as a result  of  amendments

made to it now has the following principal terms:



     - Fixed base rate 4.19% + risk margin 48 bps

     - Grace period 3 years



The early prepayment fee was 1%  of  the  prepaid  loan  amount,  plus  additional

administration and legal costs relating to the amendments and prepayment.



Nordea loan agreement



The Nordea loan agreement in the amount of  37.5  mln  EUR  was  signed  with  the

following principal terms



     - Base rate EURIBOR + risk margin 24 bps

     - Grace period 5 years

     - Maturity date 2015



Ian Plenderleith, CFO: "I believe this restructuring of Tallinna Vesi's  long-term

debt provides the company with many significant benefits in  the  short  and  long

term.



Firstly, we have achieved a significant reduction in the weighted average cost  of

interest and annual interest costs. Before restructuring  the  company's  weighted

average cost of debt was approximately 4.9% per annum, this  will  now  reduce  to

approximately 3.6% per annum, giving a saving in interest costs of approximately

15 mln EEK when compared to 2005 interest costs.



Secondly, the extensions of the grace periods for a further three and five  years

enables the company to maintain its leverage close to current levels, at present

debt to total assets ratio is 57%.



Finally, under the original loan agreement the Company had to  hold  approximately

80 mln EEK in a debt service reserve account until the maturity  of  the  loan  in

2015.  This  agreement  has  been  terminated  with the amendments of this

restructuring.



The above changes put in place a financial structure that meet the  needs  of  the

Company, and all of its stakeholders, for the foreseeable future."





Ian Plenderleith

Chief Financial Office

ian.plenderleith@tvesi.ee



Karita Sall

PR manager

Tel. + 372 6262 209

karita.sall@tvesi.ee