MERKO EHITUS

INCOME STATEMENT



AUDITED INCOME STATEMENT 01.01.99-31.12.99



audited

in thousand EEK

scheme 2

                                      CONSOLIDATED            PARENT COMPANY

                                    1999        1998        1999        1998



Net Sales                          733 657     843 156     583 950     783 192

Cost of goods sold                 669 652     768 200     545 487     742 863

GROSS PROFIT                        64 005      74 956      38 463      40 329

Marketing expenses                  10 576       7 504       4 075       4 234

Administration and general expenses 28 498      29 559      16 416      16 569

Other income                         5 790      12 568       2 621       6 355

Other expenses                       7 405       3 020       6 606       2 599

OPERATING PROFIT                    23 316      47 441      13 987      23 282

Financial income from stocks of 

subsidiary companies                    12         504       9 530      22 505

Financial income from stocks of

associated companies                 1 637         844       1 637       1 002

Income from other noncurrent 

financial investments                    0         864           0           0

Foreign exchange gain                1 277         112         441          19

Other interest and similar income    5 279       4 281       5 234       4 401

TOTAL FINANCIAL INCOME               8 205       6 605      16 842      27 927

Financial expenses related to 

subsidiary companies                67 577         197      67 704         523

Financial expenses related to 

associated companies                   141       3 837         141       3 815

Interest expense                     1 693       1 510       1 689         524

Foreign exchange loss                1 498         144       1 193          52

Other financial expenses               345       7 586         136       7 517

TOTAL FINANCIAL EXPENSES            71 254      13 274      70 863      12 431

PROFIT FROM NORMAL OPERATIONS      -39 733      40 772     -40 034      38 778

Extraordinary expenses                   0          19           0           0



Profit before taxes                -39 733      40 753     -40 034      38 778

Income tax                           1 288       1 338         966         216

Deferred income tax                 -1 458       1 023      -1 254          79

NET PROFIT FOR THE FINANCIAL YEAR  -39 563      38 392     -39 746      38 483

incl. minority interest                183         -91           0           0

NET PROFIT                         -39 746*     38 483     -39 746*     38 483



* Net profit of both parent company and affiliated group of Merko Ehitus, 

without one-off financial expense of 56 238 thousand EEK  due to the spin-off

of E.L.L. Kinnisvara, was 16 492 thousand EEK.





Ülo Metsaots

Financial Director

+372 6105110