Klementi                         ANNOUNCEMENT                          25.01.2005



Conversion of AS Klementi's convertible bonds into AS Klementi's shares



On January 3rd, 2005, The Bankruptcy Estate of PTA Group OY, which is currently

the holder of 50 000 convertible bonds of AS Klementi, informed the management of

AS Klementi regarding the intention to convert 50 000 convertible bonds into 50

000 AS Klementi shares.



The decision regarding the convertible bonds issue was made at AS Klementi's

ordinary shareholders meeting on March 24th, 2000. The conditions of the

convertible bonds were changed and amended at AS Klementi's extraordinary

shareholders meeting on August 28th, 2002.



The issuing price of convertible bonds is 24 EEK per bond and redemption date is

December 31st, 2005. Convertible bonds have a 5% annual interest.



Necessary application and documents regarding the conversion and share capital

increase will be submitted by the AS Klementi management to the Estonian Business

Registry within coming few days. As a result the share capital of AS Klementi

will be increased by 1,2 million EEK.





Toomas Leis

CEO

AS Klementi

+372 6 710 700