Eesti Telekom                 CASH FLOW STATEMENT               03/07/2002



AUDITED CASH FLOW STATEMENT 2001



Financial statements are prepared in thousands of kroons (EEK)



                                     CONSOLIDATED     

                                     2001        2000  

Cash  flow  from operating                               

activities

Profit before taxation and        810,424   1,096,575  

minority interest

Adjustments for:                                         

 Depreciation and               1,135,661     969,305  

amortisation

 Profit / loss from sales           1,473      (3,704)  

and write-off of

 fixed assets

 Income / expense from            (26,829)        310  

subsidiaries

 and associated companies

 Profit/loss from                   7,823           -  

revaluation of

 investments

 Interest income / expense         (3,070)        280  

net

 Other non-cash adjustments          (307)       (684)  

Operating profit before         1,925,175   2,062,082  

working capital changes

 Change in current                (56,615)      1,139  

receivables

 Change in inventories             45,210      (7,567)  

 Change in current               (159,419)    188,678  

liabilities

Cash generated from             1,754,351   2,244,332  

operations

 Interest paid                    (15,179)    (22,219)  

 Income tax paid - /                    -     (50,718)  

received (+)

Net cash from operating         1,739,172   2,171,395  

activities

Cash flow used in investing activities

Purchase of property, plant      (914,606) (1,206,949)  

and equipment

Purchase of licenses              (35,928)    (31,842)  

Acquisition of subsidiaries,      (14,486)    (12,000)  

net of cash acquired

Acquisition of associated          (6,000)    (17,409)  

companies

Purchase of investments,           (1,510)     (8,184)  

shares and other

Proceeds from sales of             11,426      10,686  

property, plant and

equipment

Proceeds from sales of             43,500           -  

investments

Loans granted                      (4,770)        (91)  

Cash receipts from repayment           84         210  

of loans

Dividends received                    181           7  

Interest received                  19,487      22,198  

Net cash used in investing       (902,622) (1,243,374)  

activities

Cash flow used in financing                              

activities

Proceeds from long-term debt          440           -  

Repayment of long-term debt           (15)          -  

Issuance of unsecured short-                   94,251  

term bonds

Repayment of unsecured short-    (100,000)          -  

term bonds

Proceeds form nonconvertible            7           -  

long-term debt

Repayment of non-convertible       (5,223)     (6,971)  

long-term debt

Repayment of long-term           (105,039)   (334,989)  

borrowings

Settlement of finance lease       (16,629)     (6,024)  

liabilities

Proceeds from short-term           78,233           -  

borrowings

Repayment of short-term           (78,233)          -  

borrowings

Dividends paid                   (755,617)   (549,543)  

Dividends paid to minority              -        (320)  

shareholders

Net cash used in financing       (982,076)   (803,596)  

activities

Net increase / - decrease in     (145,526)    124,425  

cash and cash  equivalents

Cash  and cash equivalents        609,743     485,318  

at beginning of year

Cash and cash equivalents at      464,217     609,743  

end of year







In thousands of euros (EUR)



                                    CONSOLIDATED      

                                    2001        2000  

Cash  flow  from operating                               

activities

Profit before taxation and        51,796      70,084  

minority interest

Adjustments for:                                         

 Depreciation and                 72,582      61,950  

amortisation

 Profit / loss from sales             94        (237)  

and write-off of

 fixed assets

 Income / expense from            (1,715)         20  

subsidiaries

 and associated companies

 Profit/loss from                    500           -  

revaluation of

 investments

 Interest income / expense          (196)         18  

net

 Other non-cash                      (19)        (43)  

adjustments

Operating profit before          123,042     131,792  

working capital changes

 Change in current                (3,618)         73  

receivables

 Change in inventories             2,889        (484)  

 Change in current               (10,188)     12,059  

liabilities

Cash generated from              112,125     143,440  

operations

 Interest paid                      (970)     (1,420)  

 Income tax paid - /                   -      (3,241)  

received (+)

Net cash from operating          111,155     138,779  

activities

Cash flow used in investing activities

Purchase of property, plant      (58,454)    (77,138)  

and equipment

Purchase of licenses              (2,296)     (2,035)  

Acquisition of                      (926)       (767)  

subsidiaries, net of cash

acquired

Acquisition of associated           (383)     (1,113)  

companies

Purchase of investments,             (97)       (523)  

shares and other

Proceeds from sales of               730         683  

property, plant and

equipment

Proceeds from sales of             2,780           -  

investments

Loans granted                       (305)         (6)  

Cash receipts from                     5          13  

repayment of loans

Dividends received                    12           -  

Interest received                  1,245       1,419  

Net cash used in investing       (57,689)    (79,467)  

activities

Cash flow used in financing                              

activities

Proceeds from long-term               28           -  

debt

Repayment of long-term debt           (1)          -  

Issuance of unsecured short-           -       6,024  

term bonds

Repayment of unsecured            (6,391)          -  

short-term bonds

Proceeds form                          -           -  

nonconvertible long-term debt

Repayment of non-                   (334)       (446)  

convertible long-term debt

Repayment of long-term            (6,713)    (21,410)  

borrowings

Settlement of finance lease       (1,063)       (385)  

liabilities

Proceeds from short-term           5,000           -  

borrowings

Repayment of short-term           (5,000)          -  

borrowings

Dividends paid                   (48,293)    (35,122)  

Dividends paid to minority             -         (20)  

shareholders

Net cash used in financing       (62,767)    (51,359)  

activities

Net increase / - decrease         (9,301)      7,953  

in cash and cash

equivalents

Cash  and cash equivalents        38,970      31,017  

at beginning of year

Cash and cash equivalents         29,669      38,970  

at end of year





Hille Võrk

Financial Manager

+372 6 272 460