EESTI TELEKOM

CASH FLOW STATEMENT



ESTONIAN TELECOM, UNAUDITED CASH FLOW OF 2000



ESTONIAN TELECOM AND SUBSIDIARY COMPANIES

CASH FLOW STATEMENT (Unaudited)

Financial statements are prepared in thousands of kroons

                                     2000       1999

Cash flow from operating                   

activities

Profit before tax and           1,096,311    904,883

minority interest

Adjustments for:                           

Depreciation                      969,321    881,059

Increase in employee                    0     10,343

benefits

Profit/Loss from sales and         -3,704      2,725

write-off of fixed assets

Income/ expense from                  180       -648

subsidiaries and associated

companies

Interests income/ expense             280     19,805

net

Other non-cash adjustments          2,006      4,864

Operating profit before         2,064,394  1,823,031

working capital changes

Change in current                    -211   -121,455

receivables

Change in inventories              -7,525    -33,901

Change in current                 190,598     78,492

liabilities (except loans)

Adjusted cash generated from    2,247,256  1,746,167

operations

Interest paid                     -34,180    -39,394

Income tax paid                   -50,718   -158,784

Net cash flow from operating    2,162,358  1,547,989

activities

                                           

Cash flow from investing                   

activities

Purchase of property, plant    -1,206,999   -981,152

and equipment

Purchase of licenses              -31,842    -31,782

Investment into associated        -15,000          0

company

Acquisition of subsidiaries,      -12,000    -11,502

net of cash acquired

Purchase of shares and other     -110,432    -65,868

securities

Proceeds from sales of             10,686      2,853

property, plant and

equipment

Proceeds from sales of             99,840     70,262

shares and other securities

Dividends received                      7        240

Cash receipts from loan               210        753

repayment

Loan granted                          -91          0

Interest received                  31,284     21,032

Net cash flow from investing   -1,234,337   -995,164

activities

                                           

Cash flow from financing                   

activities

Proceeds from issued               94,251          0

debentures

Repayment of non-convertible       -6,971     -7,383

long-term debt

Repayment of long-term           -334,989   -119,505

borrowings

Proceeds from short term                0     56,000

borrowings

Repayment of short term                 0    -56,000

borrowings

Payment of finance lease           -6,024     -5,577

liabilities

Dividends paid to minority           -320    -62,757

shareholders

Dividends paid                   -549,543   -144,307

Net cash flow from financing     -803,596   -339,529

activities

                                           

Net increase / - decrease in      124,425    213,296

cash and cash  equivalents

Cash  and cash equivalents        485,318    272,022

at beginning of year

Cash and cash equivalents at      609,743    485,318

end of period





Hille Võrk

Financial Manager

6 272 460