Tallinn Stock Exchange              NEWS RELEASE                        12.01.2005



CASH OFFER TO AS EESTI TELEKOM SHAREHOLDERS



                               NOTICE OF CASH OFFER



On 28 December 2004, as a result of a transaction concluded on the  Tallinn  Stock

Exchange on 23 December 2004, Baltic Tele AB (a company incorporated  pursuant  to

the laws of Sweden, registration number 556454-0085, address c/o  TeliaSonera  AB,

Ekonomi, Box 7754, SE-103 96, Stockholm, Sweden) acquired 100 shares of  AS  Eesti

Telekom (a company incorporated pursuant to the laws  of  Estonia,  registry  code

10234957, address Roosikrantsi 2, 10119 Tallinn). Thereby Baltic  Tele  AB  became

the owner of 50.00004 per cent of votes represented by shares of AS Eesti  Telekom

and, accordingly, gained dominant influence  over  AS  Eesti  Telekom  within  the

meaning of Article 167 of the Securities Market Act of Estonia.



Pursuant to Article 166(1) of the Securities Market Act, a person who  has  gained

dominant influence over the issuer of a  share  listed  on  an  Estonian  exchange

(target issuer) either directly or together with other persons acting  in  concert

is required to make a takeover bid for all shares of  the  target  issuer  with  a

duration of at least for 28 days within 20 days as of gaining dominant influence.



In adherence to Article 166(1) of the Securities  Market  Act  and  in  accordance

with the Rules of Takeover Bids  and  other  laws  effective  in  the Republic  of

Estonia, Baltic Tele AB is hereby offering to acquire from the shareholders of  AS

Eesti Telekom ("Shareholders") all shares of AS Eesti Telekom  not  already  owned

by Baltic Tele AB on the following terms and conditions (the "Offer"):



 1. Baltic Tele AB and persons acting in concert with Baltic Tele AB:



Baltic Tele AB is a company  belonging  to  the  TeliaSonera  group  of  companies

("TeliaSonera Group"). All shares of Baltic Tele AB are owned  by  TeliaSonera  AB

(publ), a company incorporated pursuant to the laws of  Sweden  with  registration

number 556103-4249 ("TeliaSonera AB") which is the ultimate parent company of  the

TeliaSonera Group. The persons acting in concert with Baltic Tele  AB  within  the

meaning of Article 168 of the Securities Market Act of Estonia are  the  companies

controlled by TeliaSonera AB.



 2. Number of shares of AS Eesti Telekom owned by  Baltic  Tele  AB  and  persons

    acting in concert:



Baltic Tele AB owns 68,977,314 shares of AS Eesti Telekom,  representing  50.00004

% of the total number of shares of AS Eesti Telekom. None of  the  persons  acting

in concert with Baltic Tele AB  owns  any  shares  of  AS  Eesti  Telekom  or  any

securities convertible into or rights to subscribe for  any  shares  of  AS  Eesti

Telekom.



 3. Description of shares in respect of which the Offer is made:



The total number of shares issued by AS Eesti Telekom  is  137,954,528,  which  is

made up of one class of shares.



The Offer is made in respect of all shares of AS Eesti Telekom not  already  owned

by Baltic Tele AB, being 68,977,214 shares representing 49.99996 % of  all  shares

of AS Eesti Telekom (the "Shares").



The Shares are freely transferable shares with a nominal value  of  EEK  10  each.

The Shares are  listed  on  the  Tallinn  Stock  Exchange  and  global  depository

receipts ("GDRs") representing the Shares  (each  GDR  represents  3  Shares)  are

admitted to the official list of the United Kingdom Financial  Services  Authority

in its  capacity  as  competent  authority  under  the  United  Kingdom  Financial

Services and Markets Act 2000 and to  trading  on  the  market  organised  by  the

London Stock Exchange plc, where listed securities are traded.  Each  Share  gives

the Shareholder one vote at the  general  meeting  of  shareholders  of  AS  Eesti

Telekom.



 4. Purchase price:



EEK 109.84 per Share (the "Share Price")



 5. Offer period



The period of acceptance of the Offer (the "Offer Period") begins  on  13  January

2005  and  ends  on  23  February  2005  (the  "Closing  Date").  The  transaction

instructions of the Shareholders wishing to accept the Offer  must  be  registered

with the Estonian Central  Register  of  Securities  (the  "ECRS")  by  5.00  p.m.

Estonian time on the Closing Date.



 6. Method of payment of the purchase price and transfer of Shares



Baltic Tele AB shall pay the purchase price to each Shareholder who  has  accepted

to sell his/her/its respective Shares to Baltic Tele  AB  on  7  March  2005  (the

"Value  Date")  to  such  accepting  Shareholder's  cash  account   connected   to

his/her/its securities account against the delivery of the  respective  Shares  by

such accepting Shareholder to Baltic Tele AB (delivery against payment method).



 7. Procedure for accepting the Offer



Each  Shareholder  wishing  to  accept  the  Offer  should  contact  the  relevant

financial institution  operating  the  securities  account  on  which  the  Shares

belonging to such Shareholder are held (ECRS  account  operator)  and  register  a

transaction instruction, in accordance with the terms specified in the  prospectus

of the Offer in more detail, for the sale of respective Shares to Baltic  Tele  AB

against payment.





The prospectus will be made electronically available on the  Internet  website  of

Tallinn Stock Exchange (www.ee.omxgroup.com) and the printed  prospectus  will  be

made available at Hansapank's main branch at Liivalaia 8, Tallinn, Estonia.



The authorised arranger of the Offer is  AS  Hansapank,  registry  code  10060701,

address Liivalaia 8, Tallinn 15040.



All information contained in this document is presented as at  28  December  2004,

the  date  of  submission  of  the  prospectus  and  notice  of   the   Offer   to

Finantsinspektsioon for approval.



The notice, the prospectus of the Offer and the  terms  of  the  Offer  have  been

approved by Finantsinspektsioon on 12 January 2005.