Eesti Telekom                 NEWS RELEASE                      03/12/2002



EMT DECLARED AS UNDERTAKING WITH SMP



The  Circuit  Court satisfied the Communications  Board's

appeal  against  its  ruling  and  annulled  the  Tallinn

Administrative Court ruling



In  November  2001 the Communications Board presented  to

EMT an excerpt from Communications Board directive No. 1-

3/122  of  26  November 2001, "Declaration as undertaking

with     significant    market    power     in     public

telecommunications services markets", pursuant  to  which

AS  EMT  was  declared  an undertaking  with  significant

market  power in the territory of the Republic of Estonia

for  2002 in the public mobile telephone services market.

EMT  filed  to Tallinn  Administrative Court an  appeal  

concerning  the above   Communications  Board  directive,  

in  which   it requested  the annulment of the section of 

the  directive pertaining  to  EMT  since it found  that  

the  directive declaring  EMT  an  undertaking with  

significant  market power did not comply with the 

requirements established in legislation. Tallinn 

Administrative Court will  begin  to discuss the above 

appeal on 13.03.2002.



On 18 January 2002 Tallinn Administrative Court suspended

the  execution  of the clauses of the disputed  directive

with  its  ruling, finding that if EMT's action  for  the

annulment  of  undertaking with significant market  power

were  to  be  satisfied, EMT would in the performance  of

those  clauses  have  incurred unjustified  expenses  and

performed additional encumbering obligations, from  which

a  claim  for the compensation of extensive damages  from

the state may arise.



On  7 March 2002 the Tallinn Circuit Court satisfied  the

Communication  Board's appeal concerning the  18  January

2002  Tallinn  Administrative Court ruling, and  annulled

it.  The  Circuit  Court ruling is final  and  cannot  be

appealed.



The   Circuit  Court  found  that  continuation   without

suspension   of  the  directive  would  not   cause   EMT

economically  irreversible  consequences,  since  in  the

event  the  directive were to be declared  unlawful,  EMT

would  be  entitled  to demand the state  compensate  the

damages  caused  as  a result of the unlawful  action  in

public management.



AS EMT is a fully subsidiary of AS Eesti Telekom.





Hille Võrk

Financial manager

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