Eesti Telekom                 NEWS RELEASE                      05/11/2004



THE COUNCIL OPINION



This  opinion has been prepared in accordance with §  171

of  the Securities Market Act and Chapter 9 of the Decree

No.  71 of the Minister of Finance dated 28 May 2002 "The

Takeover Rules" in connection with the takeover bid  made

by  Baltic Tele AB (the "Offeror") concerning the  shares

in AS Eesti Telekom (the "Target Issuer").





The  Supervisory Council of the Target Issuer is  of  the

following opinion:



1.    The  members  of  the Supervisory Council  and  the

   Management Board have no contracts or other relationships

   with the Offeror except that Mr. Erik Hallberg and Mr.

   Mats Salomonsson are members of the board of directors of

   the Offeror. Ms. Annika Christiansson, Mr. Erik Hallberg,

   Mr. Kennet Rådne and Mr. Mats Salomonsson have employment

   agreements  with  the parent company of  the  Offeror,

   TeliaSonera AB (publ). Mr. Krister Björkqvist  has  an

   international  assignment agreement  with  TeliaSonera

   Finland Oyj, a member of TeliaSonera Group.



2.    Ms.  Annika  Christiansson, Mr. Erik Hallberg,  Mr.

   Kennet Rådne and Mr. Mats Salomonsson have been elected

   to  the  Supervisory Council upon the proposal of  the

   Offeror. Mr. Raivo Vare is an independent member of the

   Supervisory  Council whereas his  candidature  to  the

   Supervisory  Council has been made by the  Offeror  in

   accordance  with the shareholders agreement  dated  21

   December 1998 between inter alia the Offeror  and  the

   Republic of Estonia.



3.    The  members  of  the Supervisory Council  and  the

   Management Board have no conflicts of interest arising

   from the takeover bid. Ms. Annika Christiansson, Mr. Erik

   Hallberg, Mr. Kennet Rådne and Mr. Mats Salomonsson have

   not participated in the preparation of the takeover bid.

   Strict  internal  rules have been established  in  the

   TeliaSonera Group to avoid the disclosure of confidential

   information from the Supervisory Council members to the

   team preparing the takeover bid.



4.   The Council estimates that the takeover bid over the

   time  has  sound  economic reasoning.  As  a  part  of

   TeliaSonera group, the Target Issuer can take advantage

   of  the  economies of scale and avail  itself  of  the

   purchasing  power  of TeliaSonera. With  the  combined

   resources and large TeliaSonera market, the Target Issuer

   will be able to offer competitive prices for new customer

   services.  The Offeror has indicated in  the  takeover

   prospectus  that no immediate structural  changes  are

   foreseen with regard to the Target Issuer’s employees but

   the  Offeror will seek to optimally utilise the  human

   resource capacity in the Target Issuer. The independent

   members of the Supervisory Council, Mr. Kalev Kukk, Ms.

   Tiina  Mõis, Mr. Aare Tark and Mr. Raivo Vare estimate

   that the effect of the takeover bid on the Target Issuer

   is positive and does not directly affect the employment

   relationships of the Target Issuers with its employees.



5.    The  members  of  the Supervisory Council  and  the

   Management  Board other than Ms. Tiina  Mõis  and  Mr.

   Krister Björkqvist do not own any shares of the Target

   Issuer  and therefore they are not in the position  to

   accept  or reject the takeover bid. Ms. Mõis  and  Mr.

   Björkqvist both are going to accept the takeover bid.



6.    There  are no agreements between the Target  Issuer

   and any member of the Management Board or the Supervisory

   Council that provide for payment of compensation by the

   Target Issuer or any third party or termination of such

   agreements in the case of a takeover bid concerning the

   shares of the Target Issuer.





This  opinion has been adopted by the Supervisory Council

on 10 May 2004.

                                

Aare Tark                         Annika Christiansson

Chairman of the Supervisory       Member of the Supervisory

Council                           Council

                              

Erik Hallberg                     Alo Kelder

Member of the Supervisory         Member of the Supervisory

Council                           Council

                                 

Kalev Kukk                        Tiina Mõis

Member of the Supervisory         Member of the Supervisory

Council                           Council

                                

Tarmo Porgand                     Kennet Rådne

Member of the Supervisory         Member of the Supervisory

Council                           Council

                                

Mats Salomonsson                  Raivo Vare

Member of the Supervisory         Member of the Supervisory

Council                           Council

                                 

Jaan Männik                       Krister Björkqvist

Chairman of the Management Board  Member of the Management Board





Additional information:

Krister Björkqvist            (372) 6272 465

CFO





Hille Võrk

Finantsjuht

6272460