MERKO EHITUS

BALANCE SHEET



CONSOLIDATED BALANCE SHEET AS OF 30.06.2001



unaudited, in thousand EEK



                                                    30.06.01     31.12.00



Cash and cash equivalents                             62 436       42 294



Marketable securities                                 66 869       95 042



Accounts receivable                                  115 705      203 327

Allowance for doubtful receivables                      -494         -506

                   Total accounts receivable         115 211      202 821



Receivables from subsidiary and parent companies       1 735        1 735

Receivables from associated companies                 11 405        3 029

Other short-term receivables                          34 901       18 423

                     Total other receivables          48 041       23 187



Interest receivable                                      553          542

Other accrued income                                       -            6

                          Total accrued income           553          548



Prepaid taxes                                          2 122        2 546

Other prepaid expenses                                 1 583          781

                        Total prepaid expenses         3 705        3 327



Raw materials                                          1 578        2 516

Work-in-progress                                         194          598

Finished goods                                           741        1 781

Merchandise purchased for resale                      29 302        8 112

Prepayments to suppliers                               1 592          578

Construction-in-progress                              14 277       10 464

Due from customers                                    14 382       26 516

                             Total inventories        62 066       50 565



TOTAL CURRENT ASSETS                                 358 881      417 784



Shares in associated companies                         5 960        5 303

Other shares, holdings and debt securities             1 800        1 800

Miscellaneous long-term receivables                    5 814        5 020

              Total long-term financial assets        13 574       12 123



Land and buildings                                    36 876       41 740

Ground lease                                             458        1 603

Plant and equipment                                   15 205       13 841

Other equipment and fixtures                          10 848        9 119

Accumulated depreciation                             -24 085      -22 438

Prepayments for noncurrent physical assets                 -        2 867

             Total noncurrent physical assets         39 302       46 732

Purchased concessions, patents, licenses, etc.            69           31

Goodwill                                                   -          747

                      Total intangible assets             69          778



TOTAL NONCURRENT ASSETS                               52 945       59 633

TOTAL ASSETS                                         411 826      477 417



Debentures (except bank loans)                         1 799        8 732

Short-term loans from financial institutions             157          159

                        Total debt obligations         1 956        8 891

Customer prepayments                                  36 477       31 313

Accounts payable to suppliers                        107 044      150 957



Payables to associated companies                           -        1 337

Tax liabilities                                        4 734       11 846

Payables to employees                                  6 659        7 254

Other accrued expenses                                   388          372

                        Total accrued expenses         7 047        7 626

Provisions for construction warranty liability         2 614        2 710

Due to customers                                      58 335       94 773

Other current provisions                                 496          437

                      Total current provisions        61 445       97 920

Other pre-paid revenue                                      -          57



TOTAL CURRENT LIABILITIES                            218 703      309 947

Non-convertible debt                                      67            -

Accounts payable to suppliers                          5 354            -

TOTAL NONCURRENT LIABILITIES                           5 421            -



Share capital                                         88 500       88 500

Paid-in capital over par                               2 950        2 950

Mandatory legal reserve                                8 205        4 875

Retained earnings                                     49 213            6

Net profit for the financial year                     33 089       66 595

Rate fluctuation                                       1 829          541

TOTAL OWNERS' EQUITY                                 183 786      163 467

MINORITY INTERESTS                                     3 916        4 003

TOTAL LIABILITIES AND OWNERS' EQUITY                 411 826      477 417





Ülo Metsaots

Financial Director

+372 61 05 110