EESTI ÜHISPANK

ANNOUNCEMENT

20.07.1999

 

FORTUM AND ÜHISPANK WILL ACQUIRE 100% OF AS VIRU ENERGIA

 

Tomorrow, on July 21, the parties will sign an agreement by which  

the

Finnish  energy  group  Fortum  will  obtain  70  per  cent of AS 

Viru

Energia  from  AS  Viru  Keemia  Grupp.  Ühispank  will  acquire   

the

remaining 30 per cent.

 

Viru Energia owns the  gas-based power station in  Kohtla-Järve, 

which

produces  electricity  and  heat.  For  fuel,  the  power station 

uses

generator gas produced as a  result of thermal treatment of  oil 

shale

(in the amount of approximately 50  per cent) and natural gas (in  

the

remaining amount).

 

Viru Energia owns  the distribution systems  of electricity and  

heat,

and  the  enterprise  sells  electricity  bought from other sources 

as

well.

 

The present  acquisition cannot  be treated  as a  deal with  a 

person

connected to an issuer, and the members of the supervisory council  

or

management have no personal interests in the deal.

 

The aim of the bank's  participation is to continue co-operation  

with

Fortum.  In  November  1998  also,  the  corporate finance division 

of

Ühispank  acted  as  the  advisor   and  partner  to  Fortum  in   

the

privatisation of AS Läänemaa Elektrivork located in Haapsalu.

 

Additional information:

 

Mr. Margus Kangro                               Mr. Andres Taukar

Director of corporate finance division          Director

Eesti Ühispank                                  IVO Energia AS

Tel: +372 6 656 810                             Tel: +372 6 277 277