AS EMV

ANNOUNCEMENT

17.12.98

 

CLOSURE OF A SUBSIDIARY IN RUSSIA

 

The Supervisory Board of AS EMV decided on 15.12.98 to terminate the activities

of its Russian subsidiary ZAO EMV due to the increased business risk in

Russia. The purpose of establishment of ZAO EMV was to increase the 

activities on the Russian construction market. Due to the significant risks,

the initial plan to participate in the large-size construction contests 

and concentrate on building objects as a main contractor was given up, and 

continued the subcontracting to the Scandinavian construction companies.

 

ZAO EMV turnover in 1997 was ca 1% of the total turnover of the affiliated 

group. The closure of the subsidiary in Russia will not bring along

extraordinary expenses or revenues.

 

The short-term strategic goal of AS EMV on the foreign markets is to concentrate

on the activities on the Baltic market. The EMV group's 9 months turnover in 

the Republic of Latvia was 95 million EEK, which is 16% of the total turnover.

The largest contract was the construction of the Terehova frontier post to

the border of Latvia and Russia, with a total cost of 5.27 million ECU, which 

was completed in November. The subsidiary SIA EMV Latvia completed in 9 months 

the construction works in the total volume of 28.5 million EEK, whereas its 

profits amounted to 2.8 million EEK.

 

 

 

Marko Kaha

financial analyst

tel. +372 640 3310