Merko Ehitus                  FINANCIAL RESULTS                 03/17/2003



AUDITED FINANCIAL RESULTS



Income statement 2002

consolidated, audited in thousand EEK and EUR



                                        EEK                      EUR

                                2002.a.      2001.a.      2002.a.     2001.a.



Sales                        1 669 597    1 358 590      106 706      86 830

Cost of sales               (1 499 283)  (1 231 688)     (95 821)    (78 719)



GROSS PROFIT                   170 314      126 902       10 885       8 110



Marketing expenses             (14 118)     (11 988)        (902)       (766)

Administrative expenses        (49 821)     (36 795)      (3 184)     (2 352)

Other operating income           2 156        6 959          138         445

Other operating expenses       (10 015)      (3 077)        (640)       (197)



OPERATING PROFIT                98 516       82 001        6 296       5 241



Financial income and -expense

from stocks of associated comp.  2 739        2 633          175         168

Financial income and -expense

from other noncurrent

financial investments            1 674            -          107           -

Interest expense                  (805)        (113)         (51)         (7)

Foreign exchange gain           (3 738)         (94)        (239)         (6)

Other financial income

and expenses                     4 385        6 574          280         420



TOTAL FIN. INCOME AND EXPENSES   4 255        9 000          272         575



PROFIT (LOSS) BEFORE TAXES     102 771       91 001        6 568       5 816



Income tax on dividends         (2 431)        (783)        (155)        (50)

Income tax                      (4 690)        (734)        (300)        (47)

Deferred income tax              3 912          301          250          19



NET PROFIT (LOSS)

FOR THE FINANCIAL YEAR          99 562       89 785        6 363       5 738



incl. minority interest           (699)      (2 256)         (45)       (144)



NET PROFIT (LOSS) FOR THE GROUP 98 863       87 529        6 318       5 594



Net profit (- loss) per share

(basic and diluted,in EEK&EUR)   11,17         9,89         0,71        0,63





Balance sheet as of 31.12.2002

consolidated, audited in thousand EEK and EUR



                                        EEK                     EUR

                               31.12.2002  31.12.2001  31.12.2002  31.12.2001



Cash and cash equivalents         96 310      67 224       6 155       4 296

Marketable securities             53 018      12 106       3 388         774

Customer receivables             165 568     186 808      10 582      11 939

Other receivables                 28 472      51 788       1 820       3 310

Accrued income                     1 177         993          75          63

Prepaid expenses                  14 433       8 384         922         536

Inventories                      224 340      88 324      14 338       5 645



TOTAL CURRENT ASSETS             583 318     415 627      37 281      26 563



Long-term financial assets        42 480      21 977       2 715       1 405

Real-estate investments           35 308      32 750       2 257       2 093

Non-current physical assets       50 390      48 056       3 220       3 071

Intangible assets                 (5 283)     (6 676)       (338)       (427)



TOTAL NON-CURRENT ASSETS         122 895      96 107       7 854       6 142



TOTAL ASSETS                     706 213     511 734      45 135      32 706



Debt obligations                  12 804       4 541         818         290

Customer prepayments              42 820       9 865       2 737         630

Accounts payable to suppliers    179 011     122 504      11 441       7 829

Other payables                     3 853       1 493         246          95

Tax liabilities                   16 344      11 842       1 045         757

Accrued expenses                  19 983      11 116       1 277         710

Current provisions               108 285      98 464       6 921       6 293



TOTAL CURRENT LIABILITIES        383 100     259 825      24 484      16 606



Long-term liabilities              2 604         204         166          13

Noncurrent accounts payable       14 900       7 478         952         478



TOTAL NON-CURRENT LIABILITIES     17 504       7 682       1 119         491



TOTAL LIABILITIES                400 604     267 507      25 603      17 097



Share capital                     88 500      88 500       5 656       5 656

Share premium                      2 950       2 950         189         189

Mandatory legal reserve            8 850       8 205         566         524

Retained earnings                101 480      49 996       6 486       3 195

Net profit (loss) for the

financial year                    98 863      87 529       6 318       5 594

Exchange rate differences            174       1 218          11          78

TOTAL OWNERS' EQUITY             300 817     238 398      19 226      15 236



Minority interest                  4 792       5 829         306         373



TOTAL LIABILITIES

AND OWNERS' EQUITY               706 213     511 734      45 135      32 706





Ülo Metsaots

Management Board member

+372 6 805 104