EESTI TELEKOM

ANNOUNCEMENT



EMT RECOGNIZED AS COMPANY WITH SMP



On May 30, 2001, a letter was sent to AS EMT by the National

Communications  Board saying that AS EMT  is  recognized  as

undertaking with significant market power.



A decision was made by the Estonian Competition Board on May

21,   2001,   that  established  EMT  as  undertaking   with

significant   market   power  on  the   market   of   mobile

communication services as its market share in net  sales  of

the  services  exceeds 40% and it can operate  independently

from its competitors to considerable extent.



Under   the   Telecommunication  Act  an  undertaking   with

significant  market power must connect other operators  with

its  own  networks  and provide interconnection  and  access

services. Charges for the services must be cost based.



AS EMT is a 100% subsidiary of AS Eesti Telekom.





Hille Võrk

Financial manager

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