EESTI TELEKOM

CASH FLOW STATEMENT



CONSOLIDATED CASH FLOW STATEMENT, Q2 2001



Audited

In thousands of kroons (EEK)



                              Note  6 mths to 6 mths to

                                   30 June 01 30 June 00

Cash flow from operating                       

activities

Profit before taxes and                530,938   544,497

minority interest

Adjustments for:                                

  Depreciation                        521,066   476,149

  Profit/loss from sales and           -4,702    -2,996

  write-off of fixed assets

  Income/ expense from                -32,684       174

  subsidiaries and associates

  companies

  Interests income/ expense,           -4,572        19

  net

  Other non-cash adjustments            2,340     1,090

Operating profit before              1,012,386 1,018,933

working capital changes

                                                

  Change in current                         -   -14,631

receivables                            72,994

  Change in inventories               -11,343    -6,736

  Change in current                  -122,103    48,421

liabilities (except loans)

Adjusted cash generated from           805,946 1,045,987

operations

                                                

  Interests paid                      -12,391   -14,638

  Income tax paid                           0   -54,772

Net cash flow from operating           793,555   976,577

activities

                                                

Cash flow from investing                        

activities

Purchase of tangible assets           -399,618  -458,405

Purchase of licenses                    -9,466   -11,177

Purchase of shares,                    -71,986  -100,200

investments and other

Proceeds from sales of                   7,520     4,598

tangible assets

Proceeds from sales of                  50,000    60,000

investments

Proceeds from sales of                  43,500         0

associates

Loans granted                             -319       -50

Cash receipts from repayment                52         0

of loans

Cash receipts from settlement                0       187

of long-term receivables

Dividends received                           1         0

Interests received                      17,735    11,074

Net cash flow from investing          -362,581  -493,973

activities

                                                

Cash flow from financing                        

activities

Proceeds from convertible long-            438         0

term debt

Repayment of convertible long-              -8         0

term debt

Repayment of nonconvertible             -3,402    -3,482

long-term debt

Repayment of long-term                 -20,245  -314,745

borrowings

Payment of finance lease               -16,629      -850

liabilities

Dividends paid                    6   -755,617         0

Dividends paid to minority                   0      -208

shareholders

                                                        

Net cash flow from financing          -795,463  -319,285

activities

                                                        

Net increase / - decrease in          -364,489   163,319

cash and cash  equivalents

                                                        

Cash  and cash equivalents at          609,743   485,318

beginning of year

Cash and cash equivalents at           245,254   648,637

end of period





Hille Võrk

Financial manager

6 272 460