TALLINNA SADAM                STOCK EXCHANGE RELEASE                   21.12.2004



PORT OF TALLINN'S COMMENTARY ON THE ARTICLE PUBLISHED IN EESTI PÄEVALEHT AND BNS NEWS



An explanation to article "Wrong  Decisions  Made  Port  Lose  Over  Half  Billion

Kroons" published in Eesti Päevaleht on 15 December 2004.



In Port of Tallinn's opinion  the  statement  is  misleading  since  the  possible

increase of the investment project cost is presented as the  potential  amount  of

economic loss incurred by the company.



The construction cost of the coal terminal  in  the  amount  of  EEK  600  million

provided in the article was the initial evaluation of the construction cost  prior

conclusion of design work. As a result of the state procurement conducted by  Port

of Tallinn the cost of the coal terminal territory formation and  construction  of

the  quay  amounted  to  EEK  726.5  million.  Together  with  communications  and

additional work the final cost of construction  is  estimated  to  reach  EEK  812

million.



Other arguably loss-making investment decisions referred to  in  the  article  are

potential investment decisions based on the investment cost-benefit analysis.



As of today the potential liabilities from  mentioned  investment  decisions  have

not materialized, hence it cannot be stated  that  the  company  has  incurred  an

actual loss from increase in the investment cost.





Erik Sakkov

Marketing Director

+372 631 8067