Harju Elekter                 NEWS RELEASE                      06/18/2004



LITHUANIAN SUBSIDIARY OPENS A NEW PLANT



UAB Rifas, the Lithuanian subsidiary of Harju Elekter, opened a new production

building in Panevezys. The newly-built production area has 1300 square metres

of floor space that allows for doubling of the plant’s production volumes and

expanding the product range from manufacturing automation products to energy

distribution and construction products. The necessary know-how for entering

the new market segment and a large number of components and semi-finished

products will be supplied from Estonia.



The investment in the construction and technical equipment totalled EEK 8m

(EUR 0.5m). The project was financed from own funds, which was possible thanks

to the contribution made by Harju Elekter in the share capital of Rifas in

2003.



UAB Rifas was founded in 1991. In October 2003 Harju Elekter acquired 51% of

the shares of Rifas. The company’s main business is design and sale of

equipment for industrial control and automation, manufacture and installation

of control centers. Net sales of Rifas for the 2003 were LIT 7m (EEK 32m or

EUR 2m).



Harju Elekter is a leading producer of electrical equipment and materials in

the Baltic States. Harju Elekter has holdings in the subsidiaries AS Eltek

(100%), Satmatic Oy (100%) and UAB Rifas (51%), and in the related companies

AS Keila Kaabel (34%) and AS Saajos Balti (33.3%). Harju Elekter also has more

than 10% holding in PKC Group Oyj, a company listed on the Helsinki Stock

Exchange.







Andres Allikmäe

Chairman of the Board

+372 6747 400





Moonika Vetevool

PR manager

+372 6712 761