XXL.EE

ANNOUNCEMENT



TERMINATION OF PRELIMINARY AGREEMENT



On 23.05.2000 Scandinavian Baltic Development Limited (fund manager of EBRD 

Baltic Post Privatisation Fund) announced its decision to waive its right to 

buy EEK 34 million direct issue of XXL.EE shares. According to Scandinavian 

Baltic Development Limited, the main reason for this decision was the 

company's complicated historical background, proceeding from the major 

managerial errors of the company's previous executive management, and also 

recent instability of technology shares. 



The preliminary agreement was made with Scandinavian Baltic Development 

Limited on 17.04.2000; the share issue was approved by the extraordinary 

general meeting of AS XXL.EE shareholders on 29.04.2000.



As a result of this decision, the Management Board of AS XXL.EE have 

commenced negotiations with alternative partners in order to find necessary 

amount of financing to the company.



In the nearest future the Management Board intends to call a new 

extraordinary general meeting of AS XXL.EE shareholders. The company will 

then also release a respective announcement.





Arho Anttila arho@xxl.ee

CEO

+372 6 507 500