Harju Elekter                 NEWS RELEASE                      06/12/2003



EXTENSION OF RELATED COMPANY OF HARJU ELEKTER



An extraordinary meeting of shareholders of AS Keila Kaabel, a related company

of Harju Elekter, was held on 12 June this year, and it was decided that a

factory extension project would be launched. According to the business plan,

the sales of the factory would double in the next two years, when the project

has been implemented.



New equipment will be installed to broaden the product range. The drawing and

production lines of copper and aluminium cables will be fully reconstructed.

Draka NK Cables will provide the equipment and related know-how. The equipment

cost EEK 21m (EUR 1.35m). Harju Elekter will invest EEK 18m (EUR 1.15m) in the

building extension for the larger production facilities. Construction work 

will begin in June, and the final deadline is December 2003. After 

reconstruction, Keila Kaabel will use 7600 m2 of production area plus over 

10,000 m2 of outdoor storage area under a long-term commercial lease contract 

with Harju Elekter, the owner of the registered immovable.



As a result of the negotiations, the parties agreed that AS Keila Kaabel would

issue 200 new shares each to Draka NK Cables to finance the investment and

know-how. Harju Elekter will also sell to Draka NK Cables 105 shares of AS

Keila Kaabel, the proceeds of which (EEK 8.7m or EUR 556,000) will be invested

in the extension of the Keila Kaabel production building. The financial income

of Harju Elekter from the sale of the shares will be reflected in the results

of the third calendar quarter. After the issue and sale of the shares on 1 

July 2003, the share capital of Keila Kaabel will be EEK 26m (EUR 1.66m), 

which will be divided among the shareholders as follows: 34% Harju Elekter 

and 66% Draka NK Cables.



After the accession of Estonia and the other Baltic states to the European

Union, we expect infrastructure construction to grow sharply and raise demand

for the products of Keila Kaabel as the market leader and largest cable 

factory in the Baltic States. The new technology and know-how and the 

extended production facility will enable the Keila Kaabel factory to improve 

productivity and broaden its product range and quality.



AS Keila Kaabel was founded by Harju Elekter and Nokia Kaapeli in 1992 with a

share capital of EEK 24m (EUR 1.53m). Sales in 2002 were EEK 331.7m 

(EUR 21.2m), and net profit was EEK 15.1m (EUR 0.97m). The company employs 67 

people; ten new employees will be hired after the extension.



Andres Allikmäe

Chairman of Management Board

Phone +372 674 7400



Further information: Endel Palla, Chairman of Supervisory Board of Harju 

Elekter (phone +372 674 7400).





Moonika Vetevool

PR manager

+372 6 712 761