MERKO EHITUS

INCOME STATEMENT



CONSOLIDATED INCOME STATEMENT 01.01.00-30.09.00



consolidated,

in thousand EEK,

unaudited

                                            2000          1999          1999

                                        9 months                    9 months



Net Sales                                910 004       733 657       523 930

Cost of goods sold                       850 448       669 652       454 985

GROSS PROFIT                              59 556        64 005        68 945

Marketing expenses                         6 230        10 576         7 697

Administration and general expenses       19 200        28 498        20 983

Other income                               6 308         5 790         5 426

Other expenses                             3 841         7 405         8 011

OPERATING PROFIT                          36 593        23 316        37 680

Financial income from stocks of 

subsidiary companies                                        12            12

Financial income from stocks of 

associated companies                         717         1 637         2 706

Income from other noncurrent 

financial investments                      1 051

Foreign exchange gain                      2 881         1 277           711

Other interest and similar income          2 645         5 279         3 122

TOTAL FINANCIAL INCOME                     7 294         8 205         6 551

Financial expenses related to

subsidiary companies                                    67 577*       11 339

Financial expenses related to

associated companies                         741           141           146

Interest expense                             539         1 693         1 589

Foreign exchange loss                      1 649         1 498           289

Other financial expenses                     394           345        56 534*

TOTAL FINANCIAL EXPENSES                   3 323        71 254*       69 897*

PROFIT FROM NORMAL OPERATIONS             40 564       -39 733*      -25 666*

Profit before taxes                       40 564       -39 733*      -25 666*

Income tax                                               1 314        12 214

Deferred income tax                                     -1 484          -373



Net profit (-loss) for the 

financial year                            40 564       -39 563*      -37 507*



Minority interest                            833           183             8

NET PROFIT ( - LOSS) FOR THE GROUP        39 731       -39 746*      -37 515*



* Includes the one-off financial expense of 56 238 thousand EEK  due to the

spin-off of E.L.L. Kinnisvara



Net profit of Merko Ehitus group, without one-off financial expense of 56 238

thousand EEK due to the spin-off of E.L.L. Kinnisvara, was 18 723 thousand EEK

for nine months and 16 492 thousand EEK for the whole year of 1999.





Ülo Metsaots

Financial Director

+372 6 105 110