PRO KAPITAL GRUPP

ANNOUNCEMENT



ACQUISITION OF A SUBSIDIARY



On June 26, 2001, Pro Kapital Latvija, subsidiary of

Pro Kapital Grupp, signed an agreement for acquisition 

of 100% holding in SIA Kliversala Re shares. The shares 

were acquired for USD 4,133,650 (appr. EEK 75 million) 

from Talinvest Real Estate and Nordeco. Additionally,

Pro Kapital compensated the seller's previous expenses

in the amount of USD 80,110.



The above transaction shall not be considered as transaction 

with related parties, as determined by the Rules and Regulations 

of the Tallinn Stock Exchange. Thus, Pro Kapital has not taken 

any additional obligations.



SIA Kliversala Re has real estate in the center of Riga

on the bank of River Daugava (address Trijadibas 5).

The area of the real estate of three separate lots with 1980, 

38,436 and 991 m2 totals 41,407 m2. 17 old factory buildings 

on the premises will be pulled down.



Pro Kapital Grupp intends to develop the district into 

an exclusive dwelling area.





Aivar Pihlak

Board member, PK Group

+372 614 4920