Hüvitusfond                   FINANCIAL RESULTS                 08/27/2002



UNAUDITED FINANCIAL RESULTS, 6 M 2002



Compensation   Fund’s   unaudited   profit   before   new

obligation  issues was 35,4 million kroons  (2,3  million

EUR) in 1st half 2002 compared to the previous year’s 1st

half  profit before new obligation issues of 40,2 million

kroons (2,6 million EUR).



In  the  six  months  of  2002 Compensation  Fund  earned

interest  income 38,2 million kroons (2,4  million  EUR).

Interest expense was 3,2 million kroons (0,4 million EUR,

most of it was interest on Compensation Fund bonds issued

to  the public. Net interest income in 1st half 2002  was

32,4  million kroons (2,1 million EUR) compared  to  40,6

million kroons (2,6 million EUR) in 1st half 2001.



Profit  from trading securities (stocks traded  on  stock

exchange  and  shares  of money market  funds)  was  11,2

million kroons (0,7 million EUR) compared to loss of -1,7

million kroons (-0,1 million EUR) in 1st half 2001.



Profit  from  investment securities (bonds, publicly  not

traded  stocks) was 8,3 million kroons (0,5 million  EUR)

in  2002  compared to profit of 7,7 million  kroons  (0,5

million EUR) in 2001.



Provisions increased by 14,4 million kroons (0,9  million

EUR), compared to 10,8 million kroons (0,7 million EUR)in

1st half  2001.



Fund’s operating profit in 1st half 2002 was 34,3 million

kroons  (2,2 million EUR) compared to 48,5 million kroons

(3,1 million EUR) in 2001.



Profit  from  subsidiaries amounted to 1  million  kroons

(0,01  million EUR), compared to the loss of 8,3  million

kroons (0,5 million EUR) in 1st half 2001.



Fund’s  net  profit was 35,3 million kroons (2,3  million

EUR) compared to 40,2 million kroons (2,6 million EUR) in

1st half 2001.



Fund’s assets decreased in 1st half 2002 by 123,5 million

kroons  (7,9 million EUR) due to redemption of  bonds  in

the amount of 150,6 million kroons (9,6 million EUR).



Fund’s  owner’s  equity was 1 144  million  kroons  (73,1

million EUR). Compared to the end of 2001 it increased by

current year’s profit.





Balance Sheet                                                  

(in thousands, EEK, EURO)                                      

unaudited

                                                               

ASSETS                      30.06.2002 30.06.2002 31.12.2001 31.12.2001

                                   EEK       EURO        EEK       EURO

1. Cash and bank accounts      372 176     23 786    267 882     17 121

2. Trading securities           46 097      2 946     72 644      4 643

3. Loans and other             198 176     12 666    229 715     14 681

receivables

4. Investment securities       470 291     30 057    530 451     33 902

5. Investments in              130 469      8 338    235 838     15 073

subsidiaries

6. Tangible assets                 884         57      1 329         85

7. Intangible assets                 3          0          6          0

8. Other assets                 25 030      1 600     28 808      1 841

Total assets                 1 243 126     79 450  1 366 673     87 346

                                                               

LIABILITIES AND OWNER’S                                        

EQUITY

Liabilities                                                    

9. Obligations issued to        91 806      5 867    242 478     15 497

the public

10. Other liabilities            6 982        446     15 220        973

Total liabilities               98 788      6 314    257 698     16 470

Owner’s equity                                                

11. State’s capital          1 109 081     70 883  1 264 081     80 789

12. Retained earnings             -106         -7   -219 641    -14 038

13. Profit from the             35 363      2 260     64 535      4 125

current accounting period

Total owner’s equity         1 144 338     73 136  1 108 975     70 876

Total liabilities and        1 243 126     79 450  1 366 673     87 346

owner’s equity







Income Statement                                           

(in thousands, EEK, EURO)                                  

unaudited

                                     H1                H1          

                                   2002              2001

                                    EEK     EURO      EEK      EURO

1. Interest income               38 190    2 441   54,085     3 457

2. Interest expense              -5 800     -371  -13,504      -863

3. Interest income, net          32 389    2 070   40,581     2 594

4. Net result from trading       11 195      715   -1,679      -107

securities

5. Net result from investment     8 278      529                493

securities                                          7,709

6. Dividends                      1 546       99    1,712       109

7. Other income                   1 607      103    2,973       190

8. Operating expenses            -6 217     -397  -10,031      -641

9. Other expenses                   -22       -1   -3,625      -232

10. Provisions                  -14 440     -923  -10,862      -694

11. Operating profit             34 337    2 195   48,501     3 100

12. Profit/loss from              1 026       66   -8,313      -531

subsidiaries

13. Net profit                   35 363    2 260   40 188     2 568





Jaanus Kosemaa

head of public relations

6651800, 05104614