EESTI TELEKOM

CASH FLOW STATEMENT



AUDITED CONSOLIDATED CASH FLOW STATEMENT 1999



IAS, audited                                               

EEK thous.                                                 

                                        G R O U P            Parent Company

                                       1999        1998        1999       1998

Cash flow from operating                                               

activities

Profit before tax and minority      904,883     746,842     580,262    319,930

interest

Adjustments for:                                                       

Depreciation                        881,059     723,643         676        383

Pension expenses                     10,343           0           0          0

Profit(-)/Loss(+) from sales          2,725       3,458          36          6

and write-off of fixed assets

Profit from sales of                      0      -6,117           0     -7,198

investments

Income from subsidiaries and           -648        -448    -592,829   -332,400

associated companies

Interests (income-                   19,805      36,097     -25,388    -24,834

/expens+)(net)

Other non-cash adjustments            4,864      -4,820           0        -60

Operating profit before working   1,823,031   1,498,655     -37,243    -44,173

capital changes

                                                                       

Change in current receivables      -121,455    -109,872        -270        -10

Change in inventories               -33,901         293         -16        231

Change in current liabilities        78,492     155,226      -5,502      5,570

(except loans)

Adjusted cash generated from      1,746,167   1,544,302     -43,031    -38,382

operations

                                                                       

 Interest paid                      -39,394     -55,331           0          0

 Income tax paid                   -158,784    -153,287      17,000    -22,125

Net cash flow from operating      1,547,989   1,335,684     -26,031    -60,507

activities

                                                                       

Cash flow from investing                                               

activities

Purchase of property, plant and    -981,152  -1,008,125      -3,168       -578

equipment

Purchase of licenses                -31,782     -20,097           0          0

Acquisition of a subsidiary         -11,502     -18,594           0          0

Purchase of investments             -65,868      -4,671     -65,729          0

Long-term deposit                         0        -150           0          0

Proceeds from sales of                2,853       2,517          48          0

property, palnt and equipment

Proceeds from sales of               70,262      23,822      65,449     25,610

investments

Cash receipts from loan                 753         436           0        315

repayment

Dividends received                      240       4,291     150,198    147,233

Interest received                    21,032      16,607      29,349     21,816

Net cash flow from investing       -995,164  -1,003,964     176,147    194,396

activities

                                                                       

Cash flow from financing                                               

activities

Repayment of nonconvertable          -7,383      -8,382           0          0

long-term debt

Proceeds from long-term                   0     100,000           0          0

borrowings

Repayment of long-term             -119,505    -114,695           0          0

borrowings

Payment of finance lease             -5,577     -16,032           0          0

liabilities

Proceeds from short-term             56,000     232,000           0          0

borrowings

Repayment of short-term             -56,000    -280,000           0          0

borrowings

Proceeds from issuance of share           0           1           0          1

capital

Minority contributions for                0         320           0          0

shares

Dividends paid                      -62,757     -57,326     -62,757    -57,326

Dividends paid to minority         -144,307    -137,408           0          0

shareholders

Net cash flow from financing       -339,529    -281,522     -62,757    -57,325

activities

                                                                       

Net increase / - decrease in        213,296      50,198      87,359     76,564

cash and cash  equivalents

                                                                       

Cash  and cash equivalents at       272,022     221,824     118,244     41,680

beginning of year

Cash and cash equivalents at        485,318     272,022     205,603    118,244

end of year





Raul Kalev

PR-manager

6460 220