EESTI TELEKOM

ANNOUNCEMENT



INCREASING SHAREHOLDING IN AS TELEFONIPOOD



On  December 23, 2000 AS Eesti Telefon, a 100% subsidiary

of  AS  Eesti  Telekom,  signed an agreement  to  acquire

additional 30% of the shares of AS Telefonipood.



By  now, after making all contractual payments, AS  Eesti

Telefon has become 100% owner of AS Telefonipood.



Increasing share in AS Telefonipood is part of  AS  Eesti

Telefon project aimed on improving effectiveness  of  the

private  customers service. AS Telefonipood is the  owner

of  the  “Hallo”  telephone-shops chain. Both  fixed  and

mobile telephones are on sale in “Hallo” telephone-shops.

The chain mediates about 34% of AS EMT subscriptions.



The  acquisition cannot be treated as a transaction  with

related party, neither Council nor Management Board of AS

Eesti  Telefon  have no other personal  interest  in  the

transaction.





Hille Võrk

Financial Manager

+372 6 272 460