Merko Ehitus                  FINANCIAL RESULTS                 02/28/2002



COMMENTARY TO INTERIM FINANCIAL RESULTS 2001



Merko Ehitus group 2001 consolidated and unaudited interim net sales 

amounted to 1358 million EEK (86,8 million EURO), and net profit was 

88,3 million EEK (5,6 million EURO).  

The respective figures year ago were net sales of 1420 million EEK 

(90,7 million EURO) and net profit of 66,6 million EEK (4,3 million EURO).



Merko Ehitus group deals in the field of construction and with activities 

concerned to that, in Estonia, Latvia and Lithuania. Companies of the group 

interim net sales and consolidated net sales (sales outside the group) were 

(in thousand EEK):



								

						Net Sales    Including

                                                             consolidated

                                                                net sales

Estonian companies			

	Building		

	AS Merko Ehitus 			859 033		837 234

	AS Gustaf (100% partnership)		128 725		 69 170

	AS Merko Tartu (66% partnership)	 65 100		 63 390

	Production of structures for small houses		

	OÜ Matek (71,6% partnership)		 61 461		 59 062

	Building		

	AS Normanni Linnagrupp (50% partnership) 11 571		      -

	AS Insenervõrgud (50% partnership)	      0		      -

	Production of concrete		

	AS Tartu Maja Betoontooted 

	(25% partnership)			102 721		      -

Latvian companies			

	Building		

	SIA Merks (100% partnership)		174 574		174 570

Lithuanian companies			

	Building		

	UAB Merko Statyba (100% partnership)	154 992		154 992



Companies of the group interim net sales and consolidated net sales 

(sales outside the group) were (in thousand EURO):



						Net Sales    Including

                                                             consolidated

                                                                net sales

Estonian companies			

	Building		

	AS Merko Ehitus 			 54 902		 53 509

	AS Gustaf (100% partnership)		  8 227		  4 421

	AS Merko Tartu (66% partnership)	  4 161		  4 051

	Production of structures for small houses		

	OÜ Matek (71,6% partnership)		  3 928		  3 775

	Building		

	AS Normanni Linnagrupp (50% partnership)    739		      -

	AS Insenervõrgud (50% partnership)	      0		      -

	Production of concrete		

	AS Tartu Maja Betoontooted 

	(25% partnership)			  6 565		      -

Latvian companies			

	Building		

	SIA Merks (100% partnership)		 11 157		 11 157

Lithuanian companies			

	Building		

	UAB Merko Statyba (100% partnership)	  9 906		 9 906



Merko Ehitus group 2001 consolidated data illustrating financial ratios were:



						2001 		2000 

Net profit margin	  			6,5%	  	4,7%

Operating profit margin	  			6,0%	  	4,6%

Return on equity (per year)			43,9%		49,4%

Return on assets (per year)			17,8%		17,7%

Current ratio	  				1,6	  	1,3

Invoice turnover (per year)	  		7,3	  	7,0

Equity-to-assets ratio				46,5 %		34,2%



Year 2001 consolidated and unaudited income statement and balance sheet are 

compiled in accordance with the principles of the International Accounting 

Standards (IAS), and correspond with the Estonian legal acts regulating the 

accounting principles used.





Ülo Metsaots

Financial Director

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