Merko Ehitus                  ANNOUNCEMENT                    08.12.2004



LARGE-SCALE INVESTMENT



SIA Merks, a subsidiary of AS Merko Ehitus, invests 469 million kroons

(30 million euros) in building a multifunctional center in Riga during

the following 15 months.



The net area of the center, which is designed by a Canadian company

Stadium Consultants International Inc., is ca. 24 000 m2 and holds

up to 12 500 visitors. The center will be built by spring 2006 for

the Ice hockey World Championships held in Riga.



AS Merko Ehitus may adjust its dividend policy due to this considerable

investment.





Marko Pern

Financist

+372 6 805 130