Eesti Telekom                 NEWS RELEASE                      06/29/2004



EMT TO DEVELOP EDGE SERVICE



EMT  is  the  first in Estonia to start on  28  June  the

development of the EDGE service, which enables fast  data

communication.

EDGE,  i.e. Enhanced Data rates for GSM Evolution,  is  a

further  development of GSM network and  an  intermediary

between the data communication services provided by  GPRS

and  the  3G  network. EDGE enables four  to  five  times

faster data transmission compared to GPRS currently  used

for data transmission in the GSM network.



Alongside  voice communication, EMT predicts an essential

growth  in  data  communication, which is  one  of  EMT's

strategic development areas. The launching of EDGE  helps

increase EMT's revenue from data communication.



The  introduction of EDGE presumes that some GSM  network

base stations and transmission equipment must be replaced

or upgraded. EMT plans to invest ca. 15 million kroons in

the development of EDGE during the first year.



The  supplier  of  EDGE  network  equipment  for  EMT  is

Ericsson.





Krister Björkqvist

CFO

+372 6311 212