EESTI TELEKOM

CASH FLOW STATEMENT



CONSOLIDATED CASH FLOW STATEMENT 2000



Estonian Telecom Limited and Subsidiary Companies

Cash flow statements for the year ended 31 December 2000

In thousands of kroons (EEK)

                                G R O U P

                                2000        1999

Cash  flow  from 

operating activities

Profit before taxation     1,096,575     904,883

and minority interest

Adjustments for:                     

  Depreciation and           969,305     881,059

  amortisation

  Increase in employee             -      10,343

  benefits

  Profit / loss from          (3,704)      2,725

  sales and write-off of

  fixed assets

  Income from subsidiaries       310        (648)

 and associated companies

  Interest income /              280      19,805

  expense net

  Other non-cash                (684)      4,864

  adjustments

Operating profit           2,062,082   1,823,031

before working capital changes

  Change in current             (330)   (121,455)

  receivables

  Change in inventories       (7,567)    (33,901)

  Change in current          190,147      78,492

  liabilities

Cash generated from        2,244,332   1,746,167

operations

  Interest paid              (22,219)    (39,394)

  Income tax paid - /        (50,718)   (158,784)

  received (+)

Net cash from              2,171,395   1,547,989

operating activities



Cash flow used in                    

investing activities

Purchase of property,     (1,206,949)   (981,152)

plant and equipment

Purchase of licenses         (31,842)    (31,782)

Acquisition of               (12,000)    (11,502)

subsidiaries, net of

cash acquired

Acquisition of               (17,409)          -

associated companies

Purchase of investments,    (108,024)    (65,868)

shares and other

Proceeds from sales of        10,686       2,853

property, plant and

equipment

Proceeds from sales of        99,840      70,262

investments

Loans granted                    (91)          -

Cash receipts from               210           -

repayment of loans

Cash receipts from                 -         753

settlement of long-

term receivables

Dividends received                 7         240

Interest received             22,198      21,032

Net cash used in          (1,243,374)   (995,164)

investing activities



Cash flow used in                    

financing activities

Issuance of unsecured         94,251           -

short-term bonds

Repayment of non-             (6,971)     (7,383)

convertible long-term

debt

Repayment of long-term      (334,989)   (119,505)

borrowings

Settlement of finance         (6,024)     (5,577)

lease liabilities

Proceeds from short-               -      56,000

term borrowings

Repayment of short-                -     (56,000)

term borrowings

Dividends paid              (549,543)    (62,757)

Dividends paid to               (320)   (144,307)

minority shareholders

Net cash used in            (803,596)   (339,529)

financing activities



Net increase / -             124,425     213,296

decrease in cash and

cash  equivalents

Cash  and cash               485,318     272,022

equivalents at

beginning of year

Cash and cash                609,743     485,318

equivalents at end of

year





Hille Võrk

Financial Manager

+372 6 272 460