Viisnurk                      NEWS RELEASE                      02/16/2004



CLOSING OF WOOD DIVISION



Following the restructuring plan announced on January 22, 2004, the

Supervisory and Management Boards of Viisnurk AS have decided to close

the company's Wood Division on 16 April 2004. This decision follows the

decisions to divest the Building Materials and Sporting Goods divisions.

Those decisions were taken in order to restore the sustainable profitabilty

of the company and to focus on its core business activity, furniture

business.



The Wood Division of Viisnurk AS comprises a sawmill, a complex of kilns

and the Wood Panel Factory. The competitiveness of the Wood Division has

been low since the commencement of its activities in 2000 due to the on-

going market slump and high production costs. The net sales of the Wood

Division for the first nine months of 2003 totalled EEK 49 million and

the loss from operations amounted to EEK 13.1 million.



Due to closing, appr. 190 people will be given a notice of dismissal;

however, up to 15% of the employees will be offered a job in other

divisions of Viisnurk AS.

The sale and/or lease of the factories' assets

are currently under consideration.



The total cost of redundancies are estimated to be around EEK 3.5 million;

the company will apply to the Estonian Unemployment Insurance Fund for

partial reimbursement thereof. 2003 profit figures will be affected by

provisions related to restructuring and will be lower than previously

forecast.





Andrus Aljas

Business Controller

+3724478355