Eesti Telekom                 NEWS RELEASE                03/06/2003 10:00



PROFIT ALLOCATION PROPOSAL



The net profit of AS Eesti Telekom was 1,040,401 thousand

kroons  (66,494  thousand EUR)  in  2002.  The  company’s

distributable  funds totalled 2,132,574  thousand  kroons

(136,296   thousand  EUR)  (according  to  the   Estonian

Accounting Law).



The  Council has approved the Management Board’s proposal

that  the  distributable  funds  for  2002  of  2,132,574

thousand kroons (136,296 thousand EUR), according to EAL,

be allocated as follows:



1.    To  distribute between shareholders and to  pay  to

  shareholders as dividends 515,197 thousand kroons (32,927

  thousand EUR) as follows:



  1.1. Dividends payable to all holders of A shares total

     515,187 thousand kroons (32,926 thousand EUR), i.e. 3.75

     kroons (0.24 EUR) per A share.

1.2. Dividend payable to the holder of B share totals

10,000 kroons (639 EUR).

  

2.   To distribute between shareholders and to pay out to

  shareholders as "extraordinary dividend" 309,112 thousand

  kroons (19,756 thousand EUR) as follows:



  2.1. Dividends payable to all holders of A shares total

     309,112 thousand kroons (19,756 thousand EUR), i.e. 2.25

     kroons (0.14 EUR) per A share.

  

  To  pay  the  total of 824,299 thousand kroons  (52,682

  thousand EUR), i.e. 6 kroons (0.38 EUR) per A share, as

  dividends to the holders of A shares and the  total  of

  10,000 kroons (639 EUR) to the holder of B share.



3.    Left to be carried forward in the balance sheet  is

  1,308,265 thousand kroons (83,613 thousand EUR).





Hille Võrk

Financial Manager

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