EESTI ÜHISPANK

ANNOUNCEMENT



ÜHISPANK WILL SET UP A JOINT VENTURE WITH EESTI TELEFON



Ain Hanschmidt, Chairman  of the Management  Board of Eesti  Ühispank,

and Jaan Männik,  Chairman of the  Management Board of  Eesti Telefon,

have  signed  a  memorandum   of  understanding,  stating  that   both

companies have come to an agreement on setting up a joint venture  for

the development  of prime  internet environment  and that  work is  to

start on its acts of association.



The joint  venture is  based on  the principle  of equal participation

with equity in  the amount of  EEK 30 mio.  When the negotiations  are

over, the  supervisory boards  of both  parent companies  will have to

approve  the  foundation  details  (incl.  name  and leadership of the

joint venture).



The joint venture will set up  in order to create a reliable  and most

frequently used Internet environment in Estonia. The joint venture  is

a spin-off  for providing  services outside  the core  business of its

parent  companies  in  all  major  e-business  areas: B2B (Business to

Business), B2C  (Business to  Consumer), C2B  (Consumer to  Business),

C2C  (Consumer  to  Consumer)  and  it  is  to  create  the  necessary

infrastructure.   The  joint  venture  is  to provide portal services,

mediation  through  different  sales  environments  and client service

systems,  logistics  services  as  well  as software and technological

solutions.



Eero Raun

Head of PR Department

Eesti Ühispank

Tel.: +372 6655 256





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