AS TALLINNA SADAM               STOCK EXCHANGE RELEASE                  03.12.2004



Founding of a subsidiary of Tallinna Sadam AS



Proceeding from the requirements of the Power Market Act effecting  on  01.01.2005

Tallinna Sadam AS  founded  a  subsidiary  Tallinna  Sadama  Elektrivõrk  OÜ.  The

company was entered into the Commercial Register on 01.12.2004 with  the  size  of

share capital EEK 200 000. The limited liability company is located at Sadama  25,

Tallinn, the Republic of Estonia.



The fields of activity of the  limited  liability  company  include  providing  of

network service through the distribution network (incl. design  and  construction,

construction   surveillance   of   power   network   related   objects,   repairs,

reconstruction and alignment of  electrical  equipment  and  exploitation  of  the

power network) and sale of electricity.





Erik Sakkov

Marketing Director

+372 631 8067