EESTI TELEKOM

ANNOUNCEMENT



SALE OF MINORITY INTEREST



AS  Eesti  Telefon, a 100%-owned subsidiary of  AS  Eesti

Telekom,  has decided to sell minority interest  in  100%

owned AS Connecto.



The  purpose  of the sale is to find a startegic  partner

for  the subsidiary who would accelerate expansion of  AS

Connecto into other Baltic states. AS Eesti Telefon  will

maintain  its  control over operations  of  the  company.

Management of AS Eesti Telefon has choosen AS LHV to  act

as financial advisor of the sale.



The  unaudited sales of AS Connecto, which offers design,

installation, construction and maintenance  services  for

telecommunications systems, totalled 212  million  kroons

(13.55  million euros) in 2001, and its unaudited  profit

totalled  8  million kroons (511,000 euros). The  average

number  of  employees in 2001 was 392. AS  Eesti  Telefon

transferred  the  construction  and  maintenance  of  its

telecommunications  networks to AS  Connecto  in  January

2001.





Kadri Lensment

Management Assistant

6311 212