AS Tallinna Vesi                STOCK EXCHANGE RELEASE                  21.07.2005



AS TALLINNA VESI WATER TARIFF INCREASE APPLICATION



Today, on 21st of July, AS Tallinna Vesi submitted  an  application  for  a  water

tariff increase of 9,6% to the City of Tallinn. The City of  Tallinn  is  required

to approve the new tariff by September 30th, 2005. The new tariff will be  applied

from January 2006.  Planned  tariff  increase  was  agreed  by  AS  Tallinna  Vesi

Supervisory Council on 19th of July.



The current tariff is based on the formula agreed with  the  City  of  Tallinn  in

2002. The new tariff comprises of the K coefficient of 6,5% and the CPI of 3,1%.





Eteri Harring

Head of Treasury and IR

Tel. + 372 6262 225

eteri.harring@tvesi.ee



Heli Sõber

PR specialist

Tel. + 372 6262 226

heli.sober@tvesi.ee