Eesti Telekom                 NEWS RELEASE                      07/10/2002



TELIA AND SONERA PLAN TO MERGER



On  March  26, 2002, Sonera of Finland and Telia of  Sweden,

the major shareholders of Eesti Telekom, announced that they

are  to merge. The plan for the merger was presented to  the

European  Union for approval. On July 10, 2002, the European

Commission  announced  the approval of  the  merger  between

Telia   and  Sonera.  The  approval  is  based  on   certain

commitments agreed by Telia and Sonera.



After  the  merger, the combined group will  possess  a  49%

share in Eesti Telekom.





Hille Võrk

Financial manager

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