Tallinn Stock Exchange      ANNOUNCEMENT       21.06.2005



CHANGES IN RULES OF BALTIC STOCK EXCHANGES'INDICES



As  a  part  of the integration of the Nordic and  Baltic

securities market, the Baltic stock exchanges will  adopt

the  NOREX index rules as from July 1, 2005. The  current

rules of calculating BALTIX, RIGSE, TALSE and VILSE  will

be affected.



The  Baltic  stock exchanges will adopt the  NOREX  rules

“Rules for the construction and maintenance of the  NOREX

Exchanges' All-share, Sector and Benchmark Indices”.  The

rules  are available at <a href='http://www.norex.com' target='_blank'>http://www.norex.com</a> and on the websites

of Baltic stock exchanges at <a href='http://www.omxgroup.com/tallinn' target='_blank'>http://www.omxgroup.com/tallinn</a>



In  connection with the adoption to the NOREX rules  some

rule  changes will be made regarding RIGSE, TALSE,  VILSE

and BALTIX. Below is the list of the major changes:



1) Reinvestments of dividends



In the current formula the dividend adjustment is made by

adding  the dividend amount to the price of the dividend-

paying  share  in the numerator. In the new  formula  the

dividend amount is subtracted from the share price in the

denominator.  In  practice  the  change  means  that  the

adjustment  in the new model takes place in  the  opening

index  basket  on  the dividend ex-date  whereas  in  the

current  model  the dividend is adjusted only  after  the

first  trade is made with the dividend-paying  share.  In

the current model the adjustment for some illiquid shares

can  take place several days or even weeks after the  ex-

dividend   date.  The  new  model  makes   the   dividend

adjustment whether there were trades or not.



2) Introduction of the NOREX price algorithm



To  represent the price of a share in the index  formula,

the following rules will be applied:

- If  an  officially  registered  trading  price  for  an

  index stock has not been quoted on the relevant trading

  day, the last quoted trading price shall be used in the

  calculation.

- If  a  bid has been  quoted  that is  higher  than  the

  last quoted trading price, the bid shall be applied  in

  the calculation.

- If  an  offer  has  been  quoted that is lower than the

  last quoted trading price, the offer shall be applied in

  the calculation.

- If  either  the  closing  bid  or offer is  used as the

  closing  value, this price will be viewed as  the  last

  traded  price  in the calculation of the index  on  the

  following  day,  until a new official  trade  price  is

  registered.



The  purpose of the NOREX Price Algorithm is to attain  a

price  for  index calculation, which is more precise  for

illiquid shares than the price of the last trade.





The  calculation  of BALTIX remains to be  based  on  the

official  last quoted trading price for the  security  or

the price at the close of the Index on the previous day.



3) Merger / take-over



In  case of merger or takeover the share in question will

be  excluded  from the index effective  on  the  day  the

acquiring   company  controls  at  least   90%   of   the

outstanding shares in the acquired company.



The  term  “control” is here defined as when either,  (a)

the  acquiring  company notifies the Exchanges  of  their

control or receiving accepts of at least 90 per cent, (b)

the  transaction  is registered in the Exchanges  trading

system or (c) the shares are registered with the CSDs.



For the calculation of BALTIX - if a company’s shares are

at  least 90 per cent owned by one owner, the shares  are

to be excluded from the index calculation during the next

quarterly  review, if the Baltic Exchanges do not  decide

otherwise.



4) Valuation method for spin-offs



In  addition to the currently used exclusion rule  a  new

“valuation  method”  will  be  introduced  for   spin-off

adjustments. The aim is to attain a value for  the  spun-

off  share  or right so that exclusion can be avoided  on

the  ex-date.  The  value  of  the  share/right  can   be

calculated with the following three methods:



- When the share/right is listed on another exchange.

- When the company informs the public about the value.

- The median value of valuations from members (minimum 5

  valuations).



If  none of the above-mentioned methods is applicable the

Exchanges have the possibility to exclude the share/right

for  the  ex-date  or  until  an  appropriate  price  are

available.



For   more   information   please   visit   our   webpage

<a href='http://www.omxgroup.com/tallinn' target='_blank'>http://www.omxgroup.com/tallinn</a>





Tallinn Stock Exchange

Market Services

+372 640 8800