EESTI TELEKOM

CASH FLOW STATEMENT



CONSOLIDATED CASH FLOW STATEMENT H1 2000



ESTONIAN TELECOM AND SUBSIDIARY COMPANIES

CASH FLOW STATEMENT



In thousands of Estonian kroons

                                  6 mths to 6 mths to

                                 30 June 00 30 June 99

Cash flow from operating                     

activities

Profit before tax and minority      544,497   417,133

interest

Adjustments for:                             

  Depreciation                      477,459   431,483

  Profit/Loss from sales and         -2,996       607

write-off of fixed assets

  Income from subsidiaries and          174      -437

associated companies

  Net interests (income-                 19    13,003

/expense+)

  Other non-cash adjustments           -220     3,765

Operating profit before working   1,018,933   865,554

capital changes

                                             

  Change in current receivables     -14,631  -111,410

  Change in inventories              -6,736   -27,722

  Change in current liabilities      48,421    39,980

(except loans)

Adjusted cash generated from      1,045,987   766,402

operations

                                             

  Interest paid                     -14,638   -21,030

  Income tax paid                   -54,723  -114,224

Net cash flow from operating        976,626   631,148

activities

                                             

Cash flow used in investing                  

activities

Purchase of property, plant and    -458,405  -391,783

equipment

Purchase of licenses                -11,177    -9,514

Purchase of shares and other       -100,200   -63,334

securities

Proceeds from sales of property,      4,598       615

palnt and equipment

Proceeds from sales of shares and    60,000    13,671

other securities

Cash receipts from loan repayment       187        77

Loan granted                            -50         0

Interest received                    11,074    12,729

Net cash used in investing         -493,973  -437,539

activities

                                             

Cash flow used in financing                  

activities

Repayment of nonconvertable long-    -3,482    -4,357

term debt

Repayment of long-term borrowings  -314,745   -46,745

Proceeds from short term                  0    56,000

borrowings

Payment of finance lease               -850    -2,155

liabilities

Dividends paid to minority             -208  -115,150

shareholders

Dividends paid                            0   -62,757

Income tax paid on dividends            -49         0

Net cash flow used in financing    -319,334  -175,164

activities

                                             

Net increase / - decrease in cash   163,319    18,445

and cash  equivalents

Cash  and cash equivalents at       485,318   272,022

beginning of year

Cash and cash equivalents at end    648,637   290,467

of period





Raul Kalev

PR-manager

+372 6460 220