MERKO EHITUS

BALANCE SHEET



CONSOLIDATED BALANCE SHEET AS OF 31.03.2000



consolidated, unaudited

in thousand EEK

                                          31.03.2000  31.12.1999  31.03.1999



Cash and bank                                 14 692      25 239      18 953



Marketable securities                         24 528      27 699      43 397



Accounts receivable                          120 880      87 734      84 187

Allowance for doubtful receivables              -124        -124         -30

Total accounts receivable                    120 756      87 610      84 157

Receivables from subsidiary

and parent companies                           1 735       1 735

Receivables from associated companies          3 107       1 222       1 131

Other short-term receivables                  49 769      37 697      24 921

Total other receivables                       54 611      40 654      26 052



Interest receivable                              363         467         727

Dividends receivable                                         218

Other accrued income                             171         945       1 824

Total accrued income                             534       1 630       2 551



Prepaid taxes                                  2 578       2 587       5 051

Other prepaid expenses                        18 810      10 307       7 601

Total prepaid expenses                        21 388      12 894      12 652



Raw materials                                  2 301       2 535       1 664

Work-in-progress                                 386                  26 791

Finished goods                                   973       1 133          53

Merchandise purchased for resale               3 278       3 327       3 823

Prepayments to suppliers                       4 893       1 550         488

Total inventories                             11 831       8 545      32 819

TOTAL CURRENT ASSETS                         248 340     204 271     220 581



Shares in subsidiaries                        10 764      11 207      12 741

Other shares, holdings and debt securiti         115         115       2 317

Miscellaneous long-term receivables            4 092       4 028      15 473

Total long-term financial assets              14 971      15 350      30 531



Land and buildings                            48 810      46 904      88 078

Ground lease                                   1 603       1 603       7 765

Plant and equipment                           13 627      12 988      11 718

Other equipment and fixtures                   7 183       6 854       9 005

Accumulated depreciation                     -18 032     -16 138     -15 118

Self-constructed physical assets

under construction                               156         110       1 206

Prepayments for noncurrent physical assets                                39

Total noncurrent physical assets              53 347      52 321     102 693



Development costs                                                          5

Purchased concessions, patents, licenses           9           9

Goodwill                                       1 091       1 206       1 550

Total intangible assets                        1 100       1 215       1 555



TOTAL NONCURRENT ASSETS                       69 418      68 886     134 779



TOTAL ASSETS                                 317 758     273 157     355 360





Debentures (except bank loans)                 1 744       6 107         182

Current period long-term debt repayment                                2 590

Short-term loans from financial institut         393       2 035      12 034

Total debt obligations                         2 137       8 142      14 806



Customer prepayments                          92 881      43 109      20 123

Accounts payable to suppliers                 56 766      52 526      42 859



Payables to subsidiary and parent

 companies                                        48          48       1 816

Payables to associated companies                             398       6 903

Total other payables                              48         446       8 719



Tax liabilities                                6 016       5 318       3 729



Payables to employees                          6 189       5 572       5 117

Interests payable                                  9           9         195

Other accrued expenses                         7 990      11 433       1 724

Total accrued expenses                        14 188      17 014       7 036



Short-term provisions                          1 266       1 310       2 642

Other pre-paid revenue                        19 316      29 485      55 924

TOTAL CURRENT LIABILITIES                    192 618     157 350     155 838



Non-convertible debt                           6 854       6 854       8 085

Long-term loans from financial institutions                           26 544

Total long-term liabilities                    6 854       6 854      34 629



Payables to subsidiary and parent

 companies                                                                42

Other noncurrent provisions                                            2 221

TOTAL NONCURRENT LIABILITIES                   6 854       6 854      36 892



Share capital                                 88 500      88 500      88 500

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

Mandatory legal reserve                        4 875       4 875       2 950

Retained earnings                              7 971      47 717      58 753

Net profit for the financial year              9 018     -39 746       6 188

Rate fluctuation                               1 910       1 818         614

TOTAL OWNERS' EQUITY                         115 224     106 114     159 955



MINORITY INTERESTS                             3 062       2 839       2 675



TOTAL LIABILITIES AND

OWNERS' EQUITY                               317 758     273 157     355 360





Ülo Metsaots

Financial Director

+372 6 105 110