HÜVITUSFOND

ANNOUNCEMENT



INCREASED HOLDING IN SUBSIDIARY



After the share issue Hüvitusfond's holding in its subsidiary AS Werol 

Tehased grew from 67.70% to 79.80%.



On 01.08.00 the general meeting of AS Werol Tehased shareholders 

decided to cancel 4,000,000 of the company's shares with EEK 10 par 

value in order to cover the net loss posted in previous years. As a 

result the company's share capital amount decreased from EEK 73.3 

million to EEK 33.3 million. The shareholders also decided to issue 

4,000,000 new shares with EEK 10 par value, at issue price of EEK 10.

The subscription period for the issue was 1.08.00-31.08.00. 

Hüvitusfond subscribed for 2,000,000 shares; the other shareholders, 

AS Lõunatööstus and AS Era Pank (bankrupt), did not subscribe for 

shares to be issued. The Management Board of AS Werol Tehased cancelled 

the unsubscribed shares. As a result of the issue the share capital 

amount of AS Werol Tehased grew from EEK 20 million to EEK 53.3 million. 

After the issue Hüvitusfond owns 79.8%, AS Lõunatööstus 11.7% and AS 

Era Pank (bankrupt) 8.5% holding in AS Werol Tehased share capital.



Reduction and increase of AS Werol Tehased share capital was due to 

loss posted upon the launch of the company, as a result of which the 

company's owners' equity amount was not in compliance with the 

requirements stipulated in §301 of the Commercial Code. Also the 

company's capital base needed to be strengthened in order to support 

the company's growth.





Jaanus Kosemaa

PR manager

+372 66 51 800