Eesti Telekom                 FINANCIAL RESULTS           03/11/2003 10:00



AUDITED RESULTS, EUR



Consolidated Financial Statements of

                    AS Eesti Telekom

                          2002







AS Eesti Telekom and Subsidiary Companies



Income statements for the year ended 31 December 2002



Financial statements are prepared in thousands of euros (EUR)

Income statement

                                   CONSOLIDATED

                                2002      2001

                                      Restated

Revenues                              

Net sales                    285,513   265,516

Change in work-in-progress        55        34

Capitalized self-              4,179     5,568

constructed assets

Other revenues                 5,863     2,714

Total revenues               295,610   273,832

Operating expenses                            

Materials, consumables,     (96,107)  (86,380)

supplies and services

Other operating expenses    (27,792)  (27,746)

Personnel expenses          (32,787)  (34,177)

Other expenses               (2,735)   (2,117)

Total operating expenses   (159,421) (150,420)

Profit/(loss) from           136,189   123,412

operations before

depreciation

Depreciation and            (63,941)  (72,582)

amortization

Profit/(loss) from            72,248    50,830

operations

Net income/(expenses) from     (329)     1,715

subsidiaries and

associates

Other net financing items        411     (749)

Profit before tax             72,330    51,796

Income tax on dividends      (5,835)   (1,977)

Profit after tax              66,495    49,819

Minority interest                  -      (36)

Net profit for the period     66,495    49,783

Earnings per share                            

Basic earnings per share        0.48      0.36

(in euros)

Diluted earnings per share      0.48      0.36

(in euros)



AS Eesti Telekom and Subsidiary Companies



Balance sheets as at 31 December 2002



Financial statements are prepared in thousands of euros (EUR)

Balance sheet

                                CONSOLIDATED

                                 2002       2001

ASSETS                                 

Non-current assets                     

Property, plant and           170,879    194,538

equipment

Goodwill                          236        947

Licences, patents and           2,483      2,641

trademarks

Investments in                  1,451      1,147

subsidiaries and

associates

Other investments                 173        176

Other non-current assets          130        369

Total non-current assets      175,352    199,818

Current assets                                  

Inventories                     5,971      6,648

Trade and other                40,987     34,604

receivables

Cash and cash equivalents      61,549     29,669

Total current assets          108,507     70,921

TOTAL ASSETS                  283,859    270,739

EQUITY AND LIABILITIES                          

Capital and reserves                            

Issued capital                 87,804     87,804

Reserves                       28,591     28,591

Translation reserve               (2)          -

Accumulated profits           132,870    114,668

Total capital and reserves    249,263    231,063

Non-current liabilities                         

Interest-bearing loans and      1,263      3,139

borrowings

Current liabilities                             

Trade and other payables       30,009     29,785

Interest-bearing loans and      2,282      5,635

borrowings

Provisions                      1,042      1,117

Total current liabilities      33,333     36,537

TOTAL EQUITY AND              283,859    270,739

LIABILITIES





AS Eesti Telekom and Subsidiary Companies



Cash flow statements for the year ended 31 December 2002



Financial statements are prepared in thousands of euros (EUR)

Cash flow statement

                                 CONSOLIDATED

                                  2002        2001

Cash flows from / (to)                  

operating activities

Profit before income tax        72,330      51,796

on dividends and minority

interest

Adjustments for:                                  

Depreciation and                63,941      72,582

amortization

(Profit)/loss from sales       (3,497)          94

and write-off of fixed

assets

(Income)/expense from              329     (1,715)

subsidiaries and

associates

(Profit)/loss from                (19)         500

revaluation of investments

Interests                      (1,060)       (196)

(income)/expense, net

Other non-cash adjustments         (3)        (19)

Operating profit (loss)        132,021     123,042

before working capital

changes

Change in current              (5,604)     (3,618)

receivables

Change in inventories              746       2,889

Change in current                 (50)    (10,188)

liabilities

Adjusted cash generated        127,113     112,125

from (used in) operations

Interest paid                    (490)       (970)

Income tax paid                (5,835)           -

Net cash from / (used in)      120,788     111,155

operating activities

                                                  

Cash flow from / (to)                             

investing activities

Purchase of property,         (37,887)    (58,454)

plant and equipment

Purchase of licenses           (2,153)     (2,296)

Acquisition of                       -       (926)

subsidiaries

Acquisition of associated        (639)       (383)

companies

Purchase of investments,             -        (97)

shares and other

Proceeds from sales of           5,459         730

property, plant and

equipment

Proceeds from sales of               -       2,780

investments

Loans granted                     (28)       (305)

Cash receipts from                   4           5

repayment of loans

Dividends collected                  6          12

Interest collected               1,070       1,245

Net cash from / (used in)     (34,168)    (57,689)

investing activities

                                                  

Cash flow used in                                 

financing activities

Proceeds from long-term             32          28

debt

Repayment of long-term             (1)         (1)

debt

Repayment of unsecured               -     (6,391)

short-term bonds

Proceeds from                      101           -

nonconvertible long-term

debt

Repayment of                     (379)       (334)

nonconvertible long-term

debt

Repayment of long-term         (5,064)     (6,713)

borrowings

Repayments of obligations      (1,136)     (1,063)

under finance lease

liabilities

Proceeds from short-term             -       5,000

borrowings

Repayment of short-term              -     (5,000)

borrowings

Dividends paid                (48,293)    (48,293)

Net cash used in financing    (54,740)    (62,767)

activities

                                                  

Net increase/(decrease) in      31,880     (9,301)

cash and cash equivalents

Cash and cash equivalents       29,669      38,970

at beginning of year

Cash and cash equivalents       61,549      29,669

at end of year





Hille Võrk

Financial Manager

6 272 460