EESTI TELEKOM

ANNOUNCEMENT



PROFIT ALLOCATION PROPOSAL



The  Council  of  AS Eesti Telekom approves  the  Management

Board  proposal  that the distributable funds  for  2000  of

1,836,893  thousand kroons, according to Estonian Accounting

Law, be allocated as follows:

  

1.    12,421  thousand kroons, i.e. 1.1% of the  net  profit

  shall be allocated to the legal reserve;



2.    549,543 thousand kroons, i.e. 46.7% of the net  profit

  (IAS)  to  be distributed to shareholders as dividends  as

  follows:



 2.1.  There  are  137,383,178 A-shares with  the  title  to

     dividends. Dividends for A-shares to be distributed 549,533

     thousand kroons or 4.00 kroons per share.

 2.2.  There  is  one  B-share with the title to  dividends.

     Dividends for B-share to be distributed are 10,000 kroons.

 

3.    206,075  thousand kroons i.e. 17.5% of the net  profit

  (IAS)  to  be  distributed as “Extraordinary dividend”  to

  shareholders as follows:



 3.1.  There  are  137,383,178 A-shares with  the  title  to

     dividends. Dividends for A-shares to be distributed 206,075

     thousand kroons or 1.50 kroons per share.



4.    Left  to  be carried forward in the balance  sheet  is

  1,068,854 thousand kroons.



AS  Eesti  Telekom  will fix the list  of  shareholders  for

dividend payment on June 6, 2001 at 8.00 a.m. Dividends will

be paid on June 20, 2001.





Hille Võrk

Financial manager

6 272 460