EESTI TELEKOM

ANNOUNCEMENT

04.11.1999

 

ACQUISITION OF MAJORITY STAKE IN DISTRIBUTION CHAIN "HALLO"

 

Today Estonian Telecom's subsidiary Estonian Telephone Company 

("ETC") acquired 70 % holding in Telefonipood Ltd, which owns one of 

the Estonian largest chains of telephone-shops called "Hallo".

 

As agreed by the parties the value of the transaction will be not 

revealed. As a result of the acquisition, ETC targets to improve the 

client service and distribution of its products in terms of quality 

and volume. 

 

Main part of the operations of "Hallo" chain is sell of mobile 

communication products and services; however, the largest shops of 

"Hallo" are also offering fax machines and fixed line service 

equipment. The "Hallo" chain consists of 40 selling centres all over 

Estonia. 35 % of total subscription agreements of Estonian Mobile 

Telephone Ltd are currently executed by "Hallo". In the future ETC's 

current 5 telephone-shops and 23 service centres will also start 

operate under the brand name "Hallo".

 

In 1998 the net sales of Telefonipood Ltd was EEK 93.5 million and 

net profit EEK 3.5 million.

 

 

Raul Kalev

PR-manager

+372 64 60 220

+372 50 77 797