Merko Ehitus                  NEWS RELEASE                      06/28/2004



CLOSING OF CONSTRUCTION AGREEMENT



On June 21st 2004 AS Merko Ehitus, OÜ Estconde-E and

OOO Severstoi concluded a main construction agreement

with OOO Rockwool North for reconstruction of the factory

complex in Vyborg, Leningrad oblast. The estimated price

of the project is EEK 200 000 000 (EUR 13 000 000) and

the scheduled completion time of construction works is

the second half of 2005.





Alar Lagus

Member of the Board

+372 6 805 109