Eesti Telekom                 NEWS RELEASE                      12/19/2002



PRECEPT OF THE COMPETITION BOARD



Debate   over  the  precept  of  the  Competition   Board

continues at the Administrative Court



On  December 18, 2002, the Supreme Court forwarded to the

Administrative Court for revision the precept  issued  by

the   Competition   Board,  which  had   been   cancelled

previously  by the Tallinn Administrative Court  and  the

Circuit  Court,  based  on  suit  submited  by  AS  Eesti

Telefon.



The   Supreme  Court  found  that  the  precept  of   the

Competition Board regarding minute tariffs of  the  voice

communication services within a network is inadequate for

making  the  final judgment. The Administrative  and  the

Circuit  Court have not assessed all pieces of  evidence.

The   Supreme  Court  considers  it  necessary  for   the

Administrative   Court   to   use   assistance   of   the

Communications Board when revising the case.



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.



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.  The Competition Board appealed  the  judgment

passed  by the Circuit Court to the Supreme Court, which,

on December 18, annul the earlier judgments and forwarded

the case to the Administrative Court for revision.



AS Eesti Telefon is a 100%-owned subsidiary of AS Eesti

Telekom.





Hille Võrk

Financial Manager

6 272 460