MERKO EHITUS

ANNOUNCEMENT



COMMENTARY TO H1 2001 FINANCIAL RESULTS



The H1 2001 unaudited and consolidated net sales of Merko Ehitus group amounted

to 561,8 million EEK, and net profit was 33,1 million EEK.  The respective 

figures year ago were net sales of 518,3 million EEK and net profit of 25,8 

million EEK.



The consolidated financial results of Merko Ehitus group include the results of 

AS Merko Ehitus in Estonia (project management and construction), SIA Merks in 

Latvia (project management and construction), UAB Merko Statyba in Lithuania 

(project management and construction), 100% holding in subsidiary Gustaf 

(construction), 66% holding in subsidiary Merko Tartu (construction), and 65%

holding in subsidiary Matek (production of structures for small houses).



Financial results of Merko Ehitus group also include the results of the 50% 

holding affiliated enterprise Normanni Linnagrupi AS (project management,) and

25% holding affiliated enterprise Tartu Maja Betoontooted (production of

concrete).



Financial ratios illustrating the activities of Merko Ehitus group in H1 2001

were:







				H1 2001 	H1 2000 

Net profit margin		 5,9%	 	  4,9%

Operating profit margin	  	 5,2%		  4,9%

Return on equity (per year)	38,1%	         45,1%

Return on assets (per year)	14,9%	         16,4%

Current ratio	                 1,6	          1,3

Invoice turnover (per year)	 9,8	          8,2

Equity-to-assets ratio	        44,6 %	         34,4 %





Year 2001 consolidated and unaudited income statement and balance sheet are

compiled in accordance with the principles of the International Accounting

Standards (IAS), and correspond with the Estonian legal acts regulating the

accounting principles used.





Ülo Metsaots

Financial Director

+372 61 05 110