Eesti Telekom                 NEWS RELEASE                      05/28/2002



DECISION OF THE CIRCUIT COURT



On May 27, 2002, the Tallinn Circuit Court remained effective the

decision  of the Tallinn Administrative Court that cancelled  the

precept of the Competition Board to AS Eesti Telefon.



On  24  April 2001, the Competition Board issued a precept, based

on the Competition Act, prohibiting Eesti Telefon to implement  a

per-minute  price of 34 sents at peak time, 28 sents at  off-peak

time and at 14 sents at night for voice calls in its network. The

Competition  Board  obliged Eesti Telefon to  implement  a  price

lower  than the tariffs established since April 2001.    Pursuant

to  the Competition Act, a fine in the amount of up to 5% of  the

net  sales for the year preceding the decision to impose  a  fine

can be imposed for the abuse of a dominant position.



Eesti  Telefon is of the opinion that the basic price between  14

and  34  sents  for  calls  within  the  network  is  cost-based.

Therefore,  Eesti  Telefon disagreed  with  the  precept  of  the

Competition  Board  and  contested the  precept  at  the  Tallinn

Administrative  Court on 23 May 2001. The Tallinn  Administrative

Court satisfied the complaint of Eesti Telefon and cancelled  the

precept  of  the  Competition Board of 17 of  January  2002.  The

Competition  Board appealed to a higher court in respect  of  the

judgment  passed  by  the Tallinn Administrative  Court  but  the

Circuit Court remained the decision effective.



AS Eesti Telefon is a 100% subsidiary of AS Eesti Telekom.





Hille Võrk

Financial manager

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