Viisnurk                      NEWS RELEASE                      01/06/2003



RESTRUCTURING OF SPORTS GOODS DIVISION



97 employees of the Sports Goods Division and 16 employees of the

Maintenance Unit were given notice today due to the restructuring of the

Sports Goods Division of Viisnurk AS. This includes 30 employees who were

proposed to take up a job in other production units of Viisnurk as the

latter expand their operations.



The restructuring process will result in optimisation of the fixed costs

of the Sports Goods Division and termination of production of less

profitable ski types. At the net sales of 42.5 mil. kroons, the Sports

Goods Division of Viisnurk AS made a loss of 2 mil. kroons in nine months

of 2002.



The total cost of redundancies will be approximately 2 mil. kroons; the

company has applied to Estonian Unemployment Insurance Fund for partial

reimbursement thereof. In addition to that, the Sports Goods Division will

recognise the materials, semi-finished and finished goods and non-current

assets amounting to 6 mil. kroons, which will not be used in the following

periods, as a cost in 2002.



Reverting the operations of the Sports Goods Division of Viisnurk to

profit making within the year 2003 is the main goal of the restructuring

process.





Andrus Aljas

CFO

+372 44 78 355