Harju Elekter                 NEWS RELEASE                      09/07/2004



HARJU ELEKTER CONCLUDED A PRELIMINARY LEASEHOLD CONTRACT WIT



On 4.09.2004 AS Harju Elekter and PKC Eesti concluded preliminary leasehold

contracts for long-term lease of additional production space. At the request 

of PKC Group, AS Harju Elekter will expand the production space of its 

Estonian subsidiary by 8400 m2. 5400 m2 of that production space will be at 

the disposal of the PKC Eesti Keila factory and 3000 m2 at the disposal of 

the Haapsalu factory.



PKC Group needs the additional production space due to the increase in the

volume of orders and the transfer of the production operations previously

performed in the Netherlands and Finland, to Estonia. The new halls will be

completed in May 2005. The investment is mainly financed from own funds but 

also by debt financing. The volume of the investment does not exceed 10% of

Harju Elekter's equity according to the latest consolidated balance sheet. 



Harju Elekter rents to its subsidiaries, affiliates and co-operation partners 

a total of 35.6 thousand sq m production and other space.





Andres Allikmäe

Chairman of the Management Board

Tel +372 6747 400





Moonika Vetevool

PR manager

+372 6712 761