Harju Elekter                 NEWS RELEASE                06/04/2002 09:00



SALE OF SHARES IN SUBSIDIARY



On 4 June 2002, a sales agreement was signed between AS Harju Elekter and PKC

Group Oyj (PKC), under which PKC will acquire all the shares of AS AJT Harju

Elekter (AJT), a 100% subsidiary to Harju Elekter. The price of the

transaction is EUR 2.07 million (EEK 32.4 million), of which 61.4% (EUR 1.27

million) will be paid in money and the remaining in PKC shares after an

approval by a meeting of the PKC shareholders. Harju Elekter will guarantee

AJT the operation of the infrastructure, continue to provide management

services and participate in the management bodies of PKC and AJT. The

production premises will remain in the ownership of Harju Elekter and AJT 

will continue to rent them.



AJT as a subcontractor to PKC manufactures wiring harnesses and connection

cables for the leading automotive and electronics companies in North Europe.

According to PKC, the entire production process of particular product groups

until finishing will be introduced to the AJT plants, to be soon accompanied

by end-customer supplies. In addition to considerable cost savings, the change

will result in a shorter supply chain, improved logistics and the flexibility

of client service.



Harju Elekter will use the income earned from selling the AJT shares in its

principal field of activity – manufacturing and marketing of electrical

equipment, expanding both the product range and intensifying its activities

and also contributing to the expansion of its target market share in the

Baltic States and Northern Countries. Harju Elekter will continue to

manufacture electrical connection cables and fibre-optic products in the Group

and use them in its products. The sale of the subsidiary as a second-level

subcontractor will lead to a considerable decrease in the business risks of

Harju Elekter. Continuing cooperation with PKC will provide new development

opportunities to both parties.







Andres Allikmäe

Chairman of management board

+372 6 747 400



Endel Palla

Chairman of supervisory board

+372 6 747 400





Moonika Vetevool

PR manager

+372 6 712 761