Merko Ehitus                  NEWS RELEASE                      08/09/2002



CONCLUDING A CONTRACT



UAB Merko Statyba, a part of Merko Ehitus Group, and AB "Baltic Shopping

Centers" entered a construction contract regarding building of a shopping and

leisure centre in Kaunas, Lithuania. The total area of the centre will be

circa 76 000 m2 and will include a super market of circa 22 000 m2, building

material shop together with a gardening centre totalling circa 18 000 m2 in

area, sales premises for rental purposes of circa 26 000 m2 and a leisure

centre complex of 10 000 m2. The leisure centre includes a cinema, bowling

hall, nightclub and a health spa. 

The total costs of the building project will not be made public upon 

partners' mutual agreement.

Building activities will commence in August 2002 and the centre will be

opened in November 2003.





Additional information:

Tiit Ottis, UAB Merko Statyba, CEO, tel. +372 50 17 792

                                    tel. +370 86 67 384





Marko Pern

Financist

+372 6 105 161