HÜVITUSFOND

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO THE FINANCIAL RESULTS, Q1 2000



In Q1 2000. Hüvitusfond earned net income in amount of EEK 26.8

million. 



In Q1 the fund earned EEK 33.4 million in interest income, whereas 

more than half of net interest income was earned from investments in 

fixed income securities. Interest expenses totaled EEK 10.1 million, 

mostly including interest paid on bonds. Net interest income was EEK 

23.3 million (EEK 26.3 million last year). 



Income from trading portfolio (stock exchange listed shares and money 

market instruments) was EEK 10.7 million (EEK 21.9 million in 

previous period). Lower income was mainly due to decreased volume of

portfolio during the comparable periods.



Income from investment portfolio (bonds, less liquid shares and 

units) was EEK 0.2 million (EEK 2 million in Q1 1999). Interest

income from bonds in investment portfolio is shown on interest income 

account on income statement.



Provisions for doubtful accounts totaled EEK 3.7 million; no 

provisions were made in Q1 1999.



Hüvitusfond's operating profit in Q1 totaled EEK 26.8 million 

(EEK 45.9 million in Q1 1999).



The fund did not issue bonds in Q1, hence the fund's net profit in Q1

amounted to EEK 26.8 million.



In Q1 Hüvitusfond's assets grew by EEK 33 million, and liabilities

decreased by EEK 1.7 million. 



As of 31.03.00 the fund's owners equity stood at EEK 1,053.2 million 

(EEK 885.1 million at end Q1 1999).





Jaanus Kosemaa

Public relations manager

3726651800, 25104614