MERKO EHITUS

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO CONSOLIDATED FINANCIAL RESULTS, 9M 2001



The 9m 2001 unaudited and consolidated net sales of Merko Ehitus 

group amounted to EEK 894.9 million, and net profit was EEK 55.9 

million. The respective figures year ago were net sales of EEK 

910 million and net profit of EEK 39.7 million.



Merko Ehitus group is a construction company active in Estonia,

Latvia and Lithuania. Group's net sales and consolidated net sales 

were as follows (in thousand EEK):



                                                                   Consolidated

                                                      Net sales       net sales

Companies in Estonia

               Construction

               AS Merko Ehitus                          582,682         571,864

               AS Gustaf (100% holding)                  74,336          45,995

               AS Merko Tartu (66% holding)              40,692          39,040

               Production of structures for small houses

               OÜ Matek (71.6% holding)                  40,351          38,667

               Construction

               AS Normanni Linnagrupp (50% holding)      11,400              -

               AS Insenervõrgud (50% holding)                 0              -

               Production of concrete

               AS Tartu Maja Betoontooted (25% holding)  72,315              -

Companies in Latvia

               Construction

               SIA Merks (100% holding)                 104,066         104,066

Companies in Lithuania

               Construction

               UAB Merko Statyba (100% holding)          95,236          95,236





Financial ratios illustrating the activities of Merko Ehitus group in 9m 2001

were:



				       9m 2001         9m 2000 

Net profit margin		 	 6.2 %		 4.4 %

Operating profit margin	  	 	 6.0 %		 4.0 %

Return on equity (per year)		40.4 %		43.6 %

Return on assets (per year)		15.7 %		14.5 %

Current ratio	                 	 1.6		 1.3

Invoice turnover (per year)	 	 7.3		 7.0

Equity-to-assets ratio	        	43.5 %		29.8 %



					

The 9m 2001 consolidated and unaudited income statement and balance sheet are

compiled in accordance with the principles of the International Accounting

Standards (IAS), and correspond with the Estonian legal acts regulating the

accounting principles used.





Ülo Metsaots

Management Board member

+372 6 105 110