AS Merko Ehitus                     ANNOUNCEMENT                     26.09.2005



Concluding a loan contract



On September 22nd, SIA Merks, Latvian subsidiary of AS Merko Ehitus, concluded

a loan contract lending  8 450 euro to the owners of a Latvian company ZIA

Zakusala Estates with a yearly interest of 12 per cent. The said loan matures

on December 1st this year. SIA Zakusala Estates possesses land utilization

rights for over 126 thousand square meters on the Zakusala island in Riga.

SIA Merks intends to acquire a fifty per cent share in SIA Zakusala Estates. 





Marko Pern

Financist

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