Merko Ehitus                  NEWS RELEASE                      05/21/2004



REVIVAL OF NEGOTIATIONS



The City Council of Riga, the Latvian Icehockey Federation and SIA

Merks (100% subsidiary of AS Merko Ehitus located in the Republic

of Latvia) resumed negotiations on building a multifunctional sports

and leisure centre in Riga.



The total area of the centre will be 33 000 m2 with 12 000 seats

and the whole building is to be completed in 2006 for the Icehockey

World Championships held in Riga.



SIA Merks has not yet concluded a contract for building the

above-mentioned centre.





Alar Lagus

Member of the Board

+372 6 805 109