MERKO EHITUS

INCOME STATEMENT



INCOME STATEMENT 01.01.00-31.12.00



Consolidated, unaudited, in thousand EEK

                                                          2000          1999

                                                     12 months     12 months



Net Sales                                            1 420 469       733 657

Cost of goods sold                                   1 319 713       669 652

GROSS PROFIT                                           100 756        64 005

Marketing expenses                                       9 875        10 576

Administration and general expenses                     27 428        28 498

Other income                                             7 868         5 790

Other expenses                                           5 407         7 405

OPERATING PROFIT                                        65 914        23 316

Financial income from stocks of subsidiary companies                      12

Financial income from stocks of associated companies     1 001         1 637

Income from other noncurrent financial investments       1 051

Foreign exchange gain                                    3 815         1 277

Other interest and similar income                        3 917         5 279

                           TOTAL FINANCIAL INCOME        9 784         8 205

Financial expenses related to subsidiary companies                    67 577*

Financial expenses related to associated companies       1 064           141

Interest expense                                           716         1 693

Foreign exchange loss                                    3 829         1 498

Value adjustments to financial assets                      100

Other financial expenses                                   447           345

                         TOTAL FINANCIAL EXPENSES        6 156        71 254*

PROFIT FROM NORMAL OPERATIONS                           69 542       -39 733*



Profit before taxes                                     69 542       -39 733*

Income tax                                               1 341         1 314

Deferred income tax                                        442        -1 484

Net profit (-loss) for the financial year               67 759       -39 563*

incl. minority interest                                  1 164           183

                 NET PROFIT (-LOSS) FOR THE GROUP       66 595       -39 746*



Basic net earnings (loss) per share (in kroons)           7,52	       -4,49**



*  The 1999 income statement 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 for 1999, without the mentioned one-off financial 

   expense, was 16 492 thousand EEK.



** Basic net earnings per share for 1999, without the one-off financial 

   expense of 56 238 thousand EEK  due to the spin-off of E.L.L. Kinnisvara,

   was EEK 1,86.





Ülo Metsaots

Financial Director

+372 6105 110