MERKO EHITUS

BALANCE SHEET



CONSOLIDATED BALANCE SHEET, AS AT 31.03.2001



Consolidated, unaudited

in thousand EEK



                                                        31.03.2001  31.12.2000



Cash and bank                                               49,291      42,294



Marketable securities                                      108,559      95,042



Accounts receivable                                        109,185     203,327

Allowance for doubtful accounts                               -494        -506

Total customer receivables                                 108,691     202,821



Receivables from subsidiaries and parent company             1,735       1,735

Receivables from associated companies                        2,742       3,029

Other current receivables                                   35,211      18,423

Total other receivables                                     39,688      23,187



Interest receivable                                            862         542

Other accrued income                                             0           6

Total accrued income                                           862         548



Prepaid/refundable tax receivables                           5,342       2,546

Other prepaid expenses                                       2,480         781

Total prepaid expenses                                       7,822       3,327



Raw materials                                                2,190       2,516

Work-in-progress                                               185         598

Finished goods                                               1,123       1,781

Merchandise purchased for resale                             8,229       8,112

Prepayments to suppliers                                     4,054         578

Construction-in-progress                                     8,788      10,464

Due from customers                                          15,056      26,516

Total inventories                                           39,625      50,565

TOTAL CURRENT ASSETS                                       354,538     417,784



Shares in associated enterprises                             4,603       5,303

Other shares, units and bonds                                1,800       1,800

Other non-current receivables                                4,962       5,020

Total long-term financial assets                            11,365      12,123



Land and buildings                                          36,765      41,740

Building rights                                              1,603       1,603

Plant and equipment                                         14,606      13,841

Other equipment and fixtures                                 9,861       9,119

Accumulated depreciation                                   -22,534     -22,438

Prepayments for fixed assets                                    99       2,867

Total tangible assets                                       40,400      46,732



Purchased concessions, patents, licenses, etc.                  43          31

Goodwill                                                         0         747

Total intangible assets                                         43         778



TOTAL NON-CURRENT ASSETS                                    51,808      59,633



TOTAL ASSETS                                               406,346     477,417





Debentures (except bank loans)                               1,884       8,732

Short-term loans from financial institutions                 1,566         159

Total debt obligations                                       3,450       8,891



Customer prepayments                                        34,456      31,313



Accounts payable                                            78,969     150,957



Payables to associated enterprises                               0       1,337

Tax liabilities                                              6,873      11,846



Salary-related accrued expenses                              6,960       7,254

Dividends payable                                              549           0

Other accrued expenses                                         434         372

Total accrued expenses                                       7,943       7,626



Short-term provisions                                        2,679       2,710

Due to customers                                            88,044      94,773

Other current provisions                                       519         437

Total current provisions                                    91,242      97,920



Other prepaid revenue                                            0          57

TOTAL CURRENT LIABILITIES                                  222,933     309,947



Non-convertible debt                                            67           0



Supplier payables                                              154           0



TOTAL NON-CURRENT LIABILITIES                                  221           0



Share capital                                               88,500      88,500

Capital surplus                                              2,950       2,950

Mandatory legal reserve                                      4,875       4,875

Retained earnings                                           66,601           6

Net profit for the year                                     15,322      66,595

Exchange differences                                         1,164         541

TOTAL OWNERS' EQUITY                                       179,412     163,467



MINORITY INTEREST                                            3,780       4,003



TOTAL LIABILITIES AND OWNERS' EQUITY                       406,346     477,417





Ülo Metsaots

CFO

+372 610 5110