AS Merko Ehitus                      ANNOUNCEMENT                      28.06.2005



CONCLUDING A LOAN CONTRACT



SIA Merks, a subsidiary of AS Merko Ehitus, and AS Hansabanka concluded a loan

contract for financing investments related to the multifunctional center project

in Riga. The loan amount is 17.5 million euros with an interest rate of 6 months

Euribor + margin of 1.95%. The loan period ends on December 31, 2010. 



SIA Merks, a subsidiary of AS Merko Ehitus, invests 30 million euros in building

of a multifunctional center in Riga. The net area of the center is ca 24 000 m2

and the center possesses a visitor capacity of up to 12 500 persons. The center

will be built by spring 2006 for the Ice hockey World Championships held in Riga.



Marko Pern

Financist

+372 6 805 130