AS MERKO EHITUS                    ANNOUNCEMENT                   16.09.2005



New Board Member



At the Supervisory Board meeting of AS Merko Ehitus held on September 15,

2005, director of the company's civil engineering division, Mr Andres

Agukas, was elected as the fifth member of the Board.



Andres Agukas commences his duties as a member of the Board on October 1,

2005, and will be in charge of the building activities of AS Merko Ehitus.



So far Jaan Mäe has been in charge of the the building and develpoment

activities, but hereafter he will be in charge of the residential

construction and real estate develompent of AS Merko Ehitus.



Andres Agukas has been in Merko Ehitus since 1999 and since 2002 he has

headed the civil engineering division.



Andres Agukas graduated from Tallinn Technical University in 1990 holding

a degree in road construction.



Mr Agukas does not own shares of AS Merko Ehitus.



Mr Tõnu Toomik

Chairman of the Board

+372 6 805 105