Estiko                        NEWS RELEASE                      01/16/2004



NOTIFICATION OF TAKE-OVER BID



According to the rules of takeover bids, AS  Rondam, registry code 10086617, 

address  Riia mnt 132 Tartu 51014, makes a  takeover bid to all shareholders 

of AS Estiko, 10000356, address Tehase 16  Tartu 50107, to buy all AS Estiko 

shares in their possession on the following conditions:





Shares and their number:



The takeover  bid includes all AS Estiko shares  (hereinafter referred to as 

the Shares)  not  in  the  possession  of  AS  Estiko,  AS Rondam or persons 

connected with them, i.e. 371 463 shares.

E-shares issued by AS Estiko are freely transferable ordinary  shares listed 

on  Tallinn Stock Exchange. The nominal value of each E-share is  10 EEK and 

one share  equals  one vote. The total number of Shares issued is 5 978 146. 

In  addition, AS Estiko  has issued  6 920 B1  preferred shares which do not 

give votes and have fixed interests. 1 240 of these are in the possession of 

31  private  shareholders.  B1  preferred  share  is a share without  voting 

rights,  guaranteed  dividends  on which are 6 to 15 per cent of its nominal 

value a year according  to the decision of the general meeting. The value of 

the share remains nominal and if  the owner wants the public limited company 

to buy it back, it is bought for the nominal  value. The nominal value of B1 

preferred share is 10 EEK.





Term of the takeover bid:



The takeover bid is valid from 6 January 2004 to 5 p.m. on 3 February 2004.





Takeover bid price and method of payment:



13.40 EEK an E-share and

10.00 EEK a B1 preferred share 

to be paid by bank transfer on Value Date.





Value Date:



5 February 2004





To  sell their E-shares,  shareholders  should turn to  the bank where their 

securities account is and register the  transaction  order of selling shares 

to AS Rondam no later than 5 p.m. on 3 February 2004.



All owners of B1 shares should go to the office of AS Estiko no later than 5 

p.m. on 3 February 2004 to conclude a written sales contract. AS Estiko acts 

as an authorised representative  of AS Rondam in buying the B1 shares during 

the term of the takeover bid. 



The money for the shares shall be  transferred to shareholders’ bank account 

on the Value Date, i.e. 5 February 2004.



The  number  of  AS Estiko  E-shares  controlled  by AS Rondam is 5 607 923. 

Neinar Seli, who has 100 per cent of AS Rondam shares, is a person acting in 

Conformance  with the  Bidder  and does not have any AS Estiko shares on the 

date of the bid. When the Bid  ends, AS Estiko has an intention to terminate 

listing of its E-shares on stock exchange. 



The  present  takeover  bid  has  been approved by the Financial Supervision 

Authority according to the rules set in the Securities Market Act of Estonia 

and rules of takeover bids.



The  prospectus  for  takeover  bid at the office of AS Estiko at 16, Tehase 

Str.,   Tartu   and   at   the  home   page  of   Tallinn   Stock   Exchange 

<a href='http://www.hex.ee/.' target='_blank'>http://www.hex.ee/.</a>



Additional information:

Ellen Tohvri

Authorised representative of AS Rondam

Tel. +372 7 308 300



< Translation of 2004-01-05 News Release >





Ellen Tohvri

Member of the Board

+372 7 308 300