Harju Elekter                 NEWS RELEASE                      03/08/2002



FOUNDATION OF SUBSIDIARY



The supervisory board of the AS Harju Elekter decided, in order to improve

management, specify the rights and liabilities and to better arrange

accounting and analysis, decided at its annual meeting on 7 March 2002 to

found a 100% subsidiary of Harju Elekter on the basis of the Cable 

Harnesses Factory of Harju Elekter. The business name of the new company 

is AS AJT Harju Elekter.



The share capital of AS AJT Harju Elekter is six million kroons, which is

divided into 600,000 shares with a nominal value of 10.00 kroons each. The

shares shall be paid for by monetary contributions into the bank account of

the company being founded. The supervisory board of the company has five

members – Endel Palla, Chairman, and the members Lembit Kirsme, Lembit Libe,

Ülo Merisalu and Karin Padjus. The management board of the company has one

member and Andres Allikmäe, Chairman of the management board of Harju 

Elekter shall act in the capacity of the Chairman. All the present employees 

of the Cable Harnesses Factory will transfer to the new subsidiary under 

the current employment contracts. On 1 January 2002, the number of the 

employees of the Cable Harnesses Factory was 411.



AS AJT Harju Elekter will continue to operate in its present area of

activities, which is the development, manufacturing and marketing of wiring

harnesses, connection cables, their parts, other electromechanical and

electrotechnical components and equipment as a subcontractor for the leading

automotive and electronics industries in North Europe.



Harju Elekter is one of the largest manufacturers of electric equipment and

materials in the Baltic States. The consolidated turnover of the company in

2001 amounted to 195.5 million kroons, of which 40.4% was export.





Andres Allikmäe

Chairman of Management Board

+372 6747 400





Moonika Vetevool

PR manager

+372 6712 761