Merko Ehitus                  NEWS RELEASE                      12/05/2003



NEW BOARD MEMBER



Due to Mr Ülo Metsaots’s transfer to the service of the holding company

Merko Group, he was removed from among the members of the Board in a meeting

of the Supervisory Board meeting held on December 1st 2003 taking effect

on January 5th 2004 and Mr Alar Lagus was elected as a new member of the

Board taking effect on January 5th 2004.



Mr Lagus graduated from Tallinn Technical University in 1993.



Employment history of Mr Lagus for the past three years:



2000-2002 - Hansabank, Head of the Corporate Client Division;

2002-2003 - Hansabank, Corporate Banking, Customer Relation Manager.



Mr Lagus does not own shares of AS Merko Ehitus.





Tõnu Toomik

Chairman of the Board

+372 6 805 105