MERKO EHITUS

BALANCE SHEET



AUDITED BALANCE SHEET 31.12.1999



audited

in thousand EEK

                                          CONSOLIDATED         PARENT COMPANY

                                      31.12.99   31.12.98   31.12.99   31.12.98



Cash and bank                           25 239     14 199      5 353        764



Marketable securities                   27 699     14 945     27 457     14 812



Accounts receivable                     87 734    139 143     71 095    126 353

Allowance for doubtful receivables        -124        -30          0        -30

Total accounts receivable               87 610    139 113     71 095    126 323

Receivables from subsidiary and 

parent companies                         1 735                 6 038      5 849

Receivables from associated companies    1 222      1 238      1 222      1 238

Other short-term receivables            37 697     34 164     17 743     28 498

Total other receivables                 40 654     35 402     25 003     35 585



Interest receivable                        467        350        442        296

Dividends receivable                       218          0        218      3 000

Other accrued income                       945      1 778        945      1 778

Total accrued income                     1 630      2 128      1 605      5 074



Prepaid taxes                            2 587      5 488      1 412      4 286

Other prepaid expenses                  10 307     11 158      9 030     10 383

Total prepaid expenses                  12 894     16 646     10 442     14 669



Raw materials                            2 535      2 078          0          0

Work-in-progress                             0     14 186          0          0

Finished goods                           1 133        100          0          0

Merchandise purchased for resale         3 327      8 229      3 280      3 275

Prepayments to suppliers                 1 550        370          0          0

Total inventories                        8 545     24 963      3 280      3 275

TOTAL CURRENT ASSETS                   204 271    247 396    144 235    200 502



Shares in subsidiaries                       0          0     33 446    111 192

Shares of associated companies          11 207     10 962     11 207     10 934

Other shares, holdings and debt

securities                                 115      1 565        115        115

Miscellaneous long-term receivables      4 028     13 754      3 467      4 145

Total long-term financial assets        15 350     26 281     48 235    126 386



Land and buildings                      46 904     87 799     39 548     26 292

Ground lease                             1 603      7 762      1 603      1 603

Plant and equipment                     12 988     14 098      6 225      6 716

Other equipment and fixtures             6 854      6 437      4 821      4 598

Accumulated depreciation               -16 138    -13 121    -12 367     -9 668

Self-constructed physical 

assets under construction                  110        809          0          0

Prepayments for noncurrent 

physical assets                              0         39          0          0

Total noncurrent physical assets        52 321    103 823     39 830     29 541



Development costs                            0          8          0          0

Purchased concessions, patents,

licenses, etc.                               9          0          0          0

Goodwill                                 1 206      1 665          0          0

Total intangible assets                  1 215      1 673          0          0



TOTAL NONCURRENT ASSETS                 68 886    131 777     88 065    155 927



TOTAL ASSETS                           273 157    379 173    232 300    356 429



Debentures (except bank loans)           6 107        191      3 706          0

Current period long-term debt repayment      0      3 456          0          0

Short-term loans from 

financial institutions                   2 035     30 707          0     23 626

Total debt obligations                   8 142     34 354      3 706     23 626



Customer prepayments                    43 109     29 961     12 952     26 784

Accounts payable to suppliers           52 526     59 786     35 570     45 225



Payables to subsidiary and 

parent companies                            48      1 518     29 073     49 378

Payables to associated companies           398      4 671        397      4 671

Total other payables                       446      6 189     29 470     54 049

Tax liabilities                          5 318      3 238      3 740        800



Payables to employees                    5 572      7 337      4 130      4 958

Interests payable                            9        302          0        186

Other accrued expenses                  11 433      1 294        393         65

Total accrued expenses                  17 014      8 933      4 523      5 209



Short-term provisions                    1 310      2 585      1 152      1 806

Other pre-paid revenue                  29 485     41 562     28 222     36 519

TOTAL CURRENT LIABILITIES              157 350    186 608    119 335    194 018



Non-convertible debt                     6 854      8 125      6 851      8 000

Long-term loans from 

financial institutions                       0     26 544

Total long-term liabilities              6 854     34 669      6 851      8 000



Payables to subsidiary and 

parent companies                             0         42          0          0

Other noncurrent provisions                  0      2 315          0      1 254

TOTAL NONCURRENT LIABILITIES             6 854     37 026      6 851      9 254



Share capital                           88 500     88 500     88 500     88 500

Paid-in capital over par                 2 950      2 950      2 950      2 950

Mandatory legal reserve                  4 875      2 950      4 875      2 950

Retained earnings                       47 717     20 270     47 717     20 270

Net profit for the financial year      -39 746     38 483    -39 746     38 483

Rate fluctuation                         1 818          4      1 818          4

TOTAL OWNERS' EQUITY                   106 114    153 157    106 114    153 157



MINORITY INTERESTS                       2 839      2 382          0          0



TOTAL LIABILITIES AND OWNERS' EQUITY   273 157    379 173    232 300    356 429





Ülo Metsaots

Financial Director

+372 6105110