Tallinn Stock Exchange                 ANNOUNCEMENT                  22/23.11.2005



COMMITTEE'S DECISION ON RAKVERE LIHAKOMBINAAT



On November 17, 2005, the Listing and  Surveillance  Committee  (hereinafter:  the

Committee) of the Tallinn Stock Exchange  reviewed  the  circumstances  identified

and materials collected in the course of supervisory proceedings carried out  with

respect to AS Rakvere Lihakombinaat and decided to impose a fine of five  thousand

(5,000) kroons to AS Rakvere Lihakombinaat for violation of TSE Rules.



Circumstances:



On August 19, 2005 at 13.10 AS Rakvere  Lihakombinaat  disclosed  an  announcement

stating that on August 18, one of the management board members - Veimo  Beilman  -

was recalled and the board continued with three members - Olle  Horm  -  chairman,

Siim Kallast - member, Toomas Koovit - member.



Considering the materials submitted, the Committee concluded:



1. The conduct of AS Rakvere Lihakombinaat  upon  disclosing  the  change  in  the

management board has been contrary to the obligations set out in clause 3.2.1.  of

the section "Requirements for Issuers" (hereinafter: RI) of TSE Rules. The  proper

information disclosure is the key prerequisite  to  secure  the  transparency  and

reliability of the securities  market.  According  to  the  practice  of  TSE  and

interpretation of TSE Rules (incl.  the  interpretation  by  the  TSE  Arbitration

Court) immediate disclosure means disclosing the information on the  same  day  or

at latest before trading begins in the morning of the next trading day, if  it  is

not possible earlier. On extreme  circumstances  the  issuer  has  the  option  to

inform the TSE of the  circumstances  and  to  ask  for  temporary  suspension  of

trading. Thus it would have been acceptable to disclose the information on  August

19 before the trading begins, i.e. before 10:00 AM.



2. Violation of TSE Rules has been evidenced, as assessed  by  the  Committee,  by

the circumstances identified in the course of the supervisory proceedings  carried

out by the TSE.



3. There are no objective circumstances  that  would  have  prevented  AS  Rakvere

Lihakombinaat  from  duly  performing  their  obligations.  There  are  sufficient

grounds to apply the legal remedies within the competence of the Stock Exchange.



Background:



According to clause 1.2.1. of RI, the Issuer is obliged to secure  the  disclosure

of the information specified in RI in such a form and within such time  limits  as

specified in RI.



According  to  clause  3.2.1.  of  RI,  an  Issuer  shall   immediately   disclose

information on any changes in the composition of  the  management  board  and  the

supervisory board, or any change of auditors or procurators.  An  Issuer  is  also

required to send a notice to the Exchange if any person specified in  this  clause

has applied for resignation from his or her position and if an agreement has  been

reached with a person to be employed in any of the  positions  specified  in  this

clause.



According to clause 2.4.1. of RI, information is deemed  disclosed  in  accordance

with these Requirements  when  made  public  as  a  notice  through  the  Exchange

information system.





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