EESTI TELEKOM

CASH FLOW STATEMENT



GROUP CASH FLOW STATEMENT, 9M 2000



ESTONIAN TELECOM AND SUBSIDIARY COMPANIES

In thousands of Estonian kroons

                                 9 mths to    9 mths to

                                30 Sept 00   30 Sept 99

Cash flow from operating                    

activities

Profit before tax and minority     875,819      684,959

interest

Adjustments for:                                       

 Depreciation                      714,828      658,120

 Increase in employee benefits           0       13,756

 Profit/Loss from sales and         -4,767          237

write-off of fixed assets

 Income/ expense from                  140         -382

subsidiaries and associated

 companies

 Interests income/ expense net       1,460       16,725

 Other non-cash adjustments         -3,093        4,533

Operating profit before working  1,584,387    1,377,948

capital changes

 Change in current receivables     -36,006     -142,047

 Change in inventories               7,361      -15,071

 Change in current liabilities      85,496       80,603

(except loans)

Adjusted cash generated from     1,641,238    1,301,433

operations

 Interest paid                     -26,512      -32,735

 Income tax paid                   -54,674     -138,456

Net cash flow from operating     1,560,052    1,130,242

activities

                                                       

Cash flow from investing                               

activities

Purchase of property, plant and   -731,301     -701,947

equipment

Purchase of licenses               -16,052      -13,170

Investment into an associated      -15,000            0

company

Purchase of shares and other      -100,200      -64,054

securities

Proceeds from sales of               8,134        1,929

property, palnt and equipment

Proceeds from sales of shares       99,840       18,398

and other securities

Dividends received                       7            0

Cash receipts from loan                315          174

repayment

Loan granted                           -65            0

Interest received                   22,983       14,532

Net cash flow from investing      -731,339     -744,138

activities

                                                       

Cash flow from financing                               

activities

Proceeds from issued debentures     94,251            0

Repayment of nonconvertable         -5,236       -5,860

long-term debt

Repayment of long-term            -330,684      -82,684

borrowings

Proceeds from short term                 0       64,000

borrowings

Payment of finance lease            -3,548       -3,627

liabilities

Dividends paid to minority            -320     -144,307

shareholders

Dividends paid                    -549,543      -62,757

Tax on dividends                       -76            0

Net cash flow from financing      -795,156     -235,235

activities

                                                       

Net increase / - decrease in        33,557      150,869

cash and cash  equivalents

Cash  and cash equivalents at      485,318      272,022

beginning of year

Cash and cash equivalents at       518,875      422,891

end of period





Raul Kalev

PR manager

+372 6 272 466