Merko Ehitus                  NEWS RELEASE                      08/12/2004



CONCLUDING A CONTRACT



According to memorandum of understanding signed by Parties on August

9th 2004 AS Merko Ehitus and AS Wendre concluded a contract for

construction works of factory building at Pärnu, 31 Lina Street.

Total area of the building is ca 25 000 m2 and completion time for

the works is set on June 2005.





Marko Pern

Financist

+372 6 805 130