LEKS KINDLUSTUS

ANNOUNCEMENT



INFORMATION TO SHAREHOLDERS



Leks Kindlustuse AS hereby announces that on 31.05.2000 the 

Management Boards of Leks Kindlustuse AS (hereinafter Leks 

Kindlustus) and Balti Kindlustuse AS (hereinafter Balti Kindlustus) 

signed the agreement for merger of the two insurance companies. 

According to the merger agreement, Leks Kindlustus will be merged 

with Balti Kindlustus. The merger of Balti Kindlustus and Leks 

Kindlustus will be effected through exchange of shares, whereby 

each shareholder of Leks Kindlustus will receive 0.06 shares in Balti 

Kindlustus in exchange for each per Leks Kindlustus share, i.e. one 

Balti Kindlustus share in exchange for 16.6 Leks Kindlustus shares. 

The fraction, non-whole number, parts of shares held by Leks 

Kindlustus shareholders will be compensated with additional payment, 

the size of which will be calculated based on the market price of 

Leks Kindlustus shares at the time the merger is registered at the 

merging company's (Balti Kindlustuse) domestic Commercial Registry. 

Hence, in accordance with the merger agreement, all shareholders of 

Leks Kindlustus will become shareholders in Balti Kindlustus after 

completion of merger.



Currently Balti Kindlustus owns approximately 99.3% shareholding in 

Leks Kindlustus; Leks Kindlustus has submitted an application to 

Tallinn Stock Exchange for delisting its shares from the TSE 

Secondary List.



We hereby announce that currently a shareholder has an option to sell 

its shares and warrants to Balti Kindlustus under the following terms 

and conditions:



Transaction order for sale of shares:

Security:		 		 	 Leks Kindlustus share

ISIN code:		 		 	 EE3100002965

Transaction price per share:		 	 EEK 18.00 

Number of shares to be sold:		 	 decided by seller

Buyer:		 		 		 Balti Kindlustuse AS

Buyer's account operator:		  	 AS Eesti Ühispank

Settlement:		 			 Delivery versus payment



Transaction order for sale of warrants:

Security:		 		 	 Leks Kindlustuse warrant

ISIN code:		 		 	 EE3902002965

Transaction price per warrant:		         EEK 2.00 

Number of warrants to be sold:		         decided by seller

Buyer:		 		 		 Balti Kindlustuse AS

Buyer's account operator:			 AS Eesti Ühispank

Settlement:		 			 Delivery versus payment



In case a shareholder wishes to conduct a transaction in securities 

under these terms and conditions, it must present a transaction order 

showing the aforementioned data, to its account operator bank. A 

shareholder is entitled to sell his or her shares and warrants under 

the aforementioned terms and conditions until 31.07.2000.





Pille Eikner

PR manager

+372 62 67 200