Rakvere Lihakombinaat                ANNOUNCEMENT                    07/09.11.2005



AS Rakvere Lihakombinaat to acquire 100% of the shares of subsidiary AS Ekseko



The Management Board of AS Rakvere Lihakombinaat has  announced  an  extraordinary

meeting of the shareholders of the subsidiary AS Ekseko on 7  November  2005.  The

agenda of the meeting will be the takeover of the  shares  held  by  the  minority

shareholders of the  public  limited  company  by  the  majority  shareholder.  AS

Rakvere Lihakombinaat currently holds 99.31% of  the  shares  of  AS  Ekseko.  The

shares will be transferred in return for fair monetary compensation in  accordance

with Subsection 3631 of the Commercial Code. In order to acquire the  shares  held

by AS Ekseko's minority shareholders, AS  Rakvere  Lihakombinaat  has  established

the amount of the  monetary  contribution  payable  to  these  shareholders.  This

amount has been inspected by an auditor, with an auditor's report  issued  by  the

audit firm Rimess MRI OÜ.



AS Ekseko is the biggest pig farming company in  the  Baltic  States.  The  parent

company acquired a majority share in the company in 1996, and has so far  invested

over 250 million kroons in the business.  AS  Ekseko  has  been  a  strategic  raw

material base for AS Rakvere Lihakombinaat, providing  high  quality  products  at

low cost price. As the core investor, AS Rakvere Lihakombinaat has borne  all  the

risks related to the management of the cash flows  of  AS  Ekseko,  and  has  also

served as the company's main customer.





Olle Horm

Chairman of the Management Board



Contact person:

Teet Soorm

Chairman of the Management Board of AS Ekseko

Telephone: 50 27 307