Hüvitusfond                   NEWS RELEASE                      06/05/2002



INTEREST AND REDEMPTION OF SERIES IX



Compensation Fund redeems its public issue of bonds of series IX on June 18,

2002. On the redemption day interest income and redemption amount will be

paid to investors.



Interest on bonds of IX series is 5,7% or 5,70 Estonian kroons per one bond.

Interest on bonds of IX series is based on 3 months interbank rate Talibor 

and a fixed rate of 1,5% that is added to 3 months Talibor. Compensation 

Fund fixes Talibor 4 times a year at the end of each quarter. For the 13 

days of 2nd quarter of 2001 interest related to Talibor was 5,5%. For the 

3rd quarter of 2001 4,68%, for 4th quarter 2001 3,97%, for the 1st quarter 

of 2002 3,97% ja for the remaining 77 days of 2nd quarter 2002 the interest

rate of the 1st qarter will hold. Weighted average of Talibor is 4,2%, fixed

rate is 1,5% and the interest is therefore 5,7%.



Interest income will be paid to those investors, who are bondholders

acocording to the data of The Estonian Central Depository for Securities 

(ECSD) on June 16, 2002, end of day.



Redemption sum will be paid to those investors, who are bondholders 

acocording to the data of The Estonian Central Depository for Securities 

(ECSD) on June 18, 2002 at 8 am.



The outstanding amount of IX series bonds is 46 million kroons in nominal 

value.



Interest income paid by Compensation Fund to those bondholders who are 

natural persons, is not subject to personal income tax.



Compensation Fund pays out in total 2,6 million kroons as interest income 

and 46 million kroons as redemption amount to holders of IX series bonds.

The public issue of IX series bonds took place from May 21 to June 18, 1997.

792 natural persons and 3 legal entities participated in the issue.





Jaanus Kosemaa

Head of public relations

6651800, 05104614