Harju Elekter                 NEWS RELEASE                      08/30/2004



DECISIONS OF THE SUPERVISORY BOARD MEETING



The supervisory board of AS Harju Elekter decided the following at the meeting

on 30 August 2004:



1) The share capital of AS Harju Elekter shall be increased by EEK 2 million

to EEK 56 million by an issue of new shares by way of monetary contributions.



2) For increasing share capital, EEK 200 000 ordinary registered shares with a

nominal value of EEK 10 shall be issued.



3) Deriving from the resolutions adopted at the annual general meeting of

shareholders of Harju Elekter on 27 April 2000, the resolutions adopted by the

supervisory board on 18 August 2000, and the provisions of the TSE Rules, the

issue price of the shares to be issued is EEK 40 per share, including an issue

premium of EEK 30 per share.



4) Subscription for the shares to be issued shall take place from 16 September

to 30 September 2004 on the premises of the management board of Harju Elekter

at the address: Paldiski mnt. 31, 76606 Keila, on working days from 8 to 16.



5) The resolution of the general meeting of shareholders of Harju Elekter of

27 April 2000 precludes the pre-emptive right of shareholders to subscribe for

the shares to be issued and the issue of shares is directed at persons who,

pursuant to the resolutions of the general meeting of shareholders of 27 April

2000 and the meeting of the supervisory board of 18 August 2000, have

concluded a share option contract valid at the time of subscription for shares

or who, as entitled persons, have acquired such right of option deriving from

a share option contract via the management board to the extent specified in

the share option contract.



6) The full issue price of the subscribed shares must be paid simultaneously

with the subscription for the shares.



7) The shares to be issued entitle a shareholder to dividends starting from

the financial year of 2004.



8) The management board of Harju Elekter shall confirm the results of the

subscription for the shares as of 30 September 2004 by 4 October 2004 at the

latest.



9) In the case of under subscription of shares, the supervisory board of Harju

Elekter shall, in 15 days from the end of the subscription period and after

receiving the results of the subscription of shares from the management board,

cancel the shares not subscribed for during the subscription period and

consider the share capital to be increased to the extent that the shares were

actually subscribed and paid for.



10) The funds accrued from the issue of shares shall be used for extending

production, first and foremost for increasing the production capacity of

electrical installations.

The same resolution of the supervisory board increased the investment plan for

2004.





Andres Allikmäe

Chairman of the Management Board

+372 6747 400





Moonika Vetevool

PR manager

+372 6712 761