EESTI ÜHISPANK

ANNOUNCEMENT



APPEAL AGAINST THE JUDGMENT ON THE VEB-FUND CASE



Eesti Ühispank, dissatisfied with the judgment passed by Tallinn  City

Court on the VEB-Fund case on  19 September 2000, has decided to  take

an appeal to Tallinn District Court.



Põhja-Eesti  Pank  that  merged  with  Eesti  Ühispank  never  had the

pertinent claims booked on its balance sheet as these claims had  been

transferred  into  VEB-Fund  form  the  balance  sheet  of Põhja-Eesti

Aktsiapank, the predecessor Põhja-Eesti Pank.



Eesti Ühispank is of the opinion that the freezing of assets  disputed

in this  case was  a political  decision of  the Russian Federation in

order  to   exercise  pressure   on  the   Republic  of   Estonia  and

consequently the whole issue is should be settled by both states.  The

decision to  establish VEB-Fund  and collect  all the  frozen accounts

was made  by Estonian  Parliament. Therefore  Eesti Ühispank  does not

consider itself to be liable for the said claims.



In litigating  the case  of A.O.  Imbi (bankrupt)  vs. Eesti Ühispank,

and the counterclaim of Eesti Ühispank and VEB Foundation to  abrogate

the deal  of A.O.  Imbi (bankrupt)  and OÜ  Erkers, Tallinn City Court

has  passed  the  judgment  that  Eesti  Ühispank  is  to allocate EEK

56 617 234 for  A.O. Imbi's bankruptcy assets.   The judgment did  not

satisfy  the  counterclaim  of   Eesti  Ühispank  and  dismissed   the

counterclaim  of  VEB  Foundation  against  rendering the deal of A.O.

Imbi (bankrupt) and OÜ Erkers null and void.



Eero Raun

Head of PR-department

Eesti Ühispank

Tel: +372 6655 256





Urmas Neetar

head of reporting department

6 656 390