AS MERKO EHITUS                   FINANCIAL RESULTS                   11.04.2005



AUDITED FINANCIAL RESULTS 2004



AUDITED INCOME STATEMENT 2004

consolidated, in thousand EEK and EUR



                                            EEK                   EUR

                                      2004        2003       2004       2003



Sales                            3 110 399   2 707 663    198 791    173 051

Cost of sales                   (2 695 989) (2 429 125)  (172 305)  (155 249)



Gross profit                       414 410     278 538     26 486     17 802



Marketing expenses                 (18 138)    (15 832)    (1 159)    (1 012)

Administrative expenses            (89 089)    (73 362)    (5 694)    (4 689)

Other operating income              13 607      15 326        869        980

Other operating expenses            (3 677)     (2 122)      (235)      (136)



Operating profit                   317 113     202 548     20 267     12 945



Financial income and expenses from

stocks of subsidiaries                (299)        542        (19)        35

Financial income and expenses from

stocks of associate companies        9 950       4 446        636        284

Financial income and expenses from

other long-term fin. investments    (1 478)      1 084        (94)        69

Interest expense                    (3 395)     (2 503)      (217)      (160)

Foreign exchange gain               (5 254)     (2 692)      (336)      (172)

Other financial income and expense  (8 458)     (5 684)      (541)      (363)

Total financial income and expenses (8 934)     (4 807)      (571)      (307)



Profit before taxes                308 179     197 741     19 696     12 638



Income tax                          (9 997)    (10 901)      (639)      (697)



Net profit for fiscal year         298 182     186 840     19 057     11 941

   incl. minority interest           3 584       2 367        229        151

         equity holders

         of the company            294 600     184 473     18 828     11 790



Parent company's net profit per share

(basic and diluted, in EEK and EUR)  33,29       20,84       2,13       1,33





AUDITED BALANCE SHEET AS OF 31.12.2004

consolidated, in thousand EEK and EUR



                                       EEK                      EUR

                             31.12.2004   31.12.2003  31.12.2004  31.12.2003

ASSETS

Current assets

Cash                            141 812      240 152       9 063      15 348

Short-term financial investments 11 775       36 096         753       2 307

Receivables and pre-payments    499 165      554 184      31 903      35 419

Inventories                     351 332      158 613      22 454      10 137

Total current assets          1 004 084      989 045      64 173      63 211



Non-current assets

Long-term financial investments  55 438       32 489       3 543       2 077

Real estate investments          61 389       52 869       3 924       3 379

Tangible assets                 131 765       73 051       8 421       4 669

Intangible assets                 1 110       (1 592)         71        (102)

Total non-current assets        249 702      156 817      15 959      10 023



TOTAL ASSETS                  1 253 786    1 145 862      80 132      73 234



LIABILITIES AND OWNERS' EQUITY

Current liabilities

Loan commitments                 12 578       17 379         804       1 110

Debts and prepayments           488 170      628 729      31 200      40 184

Current provisions                5 784        5 191         369         332

Total current liabilities       506 532      651 299      32 373      41 626



Non-current liabilities

Loans, bonds and finance

lease liabilities                14 046       16 399         898       1 048

Other long-term payables          8 038        9 532         514         609

Total non-current liabilities    22 084       25 931       1 412       1 657



Total liabilities               528 616      677 230      33 785      43 283



Owners' equity

Minority interest                 7 200        4 809         460         307

Capital attributable the Company's equity holders

   Share capital                 88 500       88 500       5 656       5 656

   Share premium                  2 950        2 950         189         189

   Mandatory legal reserve        8 850        8 850         566         566

   Other reserves                (4 663)      (1 380)       (298)        (88)

   Retained earnings            622 333      364 903      39 774      23 321

Total capital attributable

the Company's equity holders    717 970      463 823      45 887      29 644

Total owners' equity            725 170      468 632      46 347      29 951



TOTAL LIABILITIES

AND OWNERS' EQUITY            1 253 786    1 145 862      80 132      73 234





Alar Lagus

Member of Board

+372 6 805 109