HÜVITUSFOND

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO AUDITED FINANCIAL RESULTS, H1 2001



The Supervisory Board of Hüvitusfond approved the fund's H1 2001 

financial results. In H1 2001 Hüvitusfond earned net income 

in amount of EEK 40.2 million (EEK 34 million last year,

increasing by EEK 6 million).



In H1 the fund earned EEK 54 million in interest income, whereas 

more than half of net interest income was earned from investments in 

bonds. Interest expenses totaled EEK 13.5 million, mostly including 

interest paid on bonds. Net interest income was EEK 40.5 million (EEK 

45 million last year).



Loss from trading portfolio (stock exchange listed shares and money 

market instruments) was EEK 1.7 million. Loss was mainly due to decreased

share prices during the audited period. Income from trading portfolio

totaled EEK 8 million in H1 2000.



Income from investment portfolio (bonds, less liquid shares and 

units) was EEK 7.7 million (EEK 3.8 million in H1 2000). Interest

income from bonds in investment portfolio is shown on interest income 

account on income statement.



Change in allowance for doubtful receivables was EEK 10.9 million, 

compared to EEK -1.9 million in H1 2000.



In H1 Hüvitusfond earned EEK 48.5 million of gross profit (EEK 46.1 

million in H1 2000). 



In H1 the fund saw EEK 8.3 million loss from subsidiaries (mainly from

Werol Tehased), decreasing from EEK 12 million loss during the 

same period last year.



Hüvitusfond's operating profit in H1 totaled EEK 40.2 million 

(EEK 34 million in H1 2000). The fund did not issue bonds in H1.



In H1 Hüvitusfond's total assets decreased by EEK 113.6 million due to 

redemption of bonds (total volume EEK 137.5 million). 



As of 30.06.01 the fund's owners equity stood at EEK 1,084.6 million

(EEK 1,061.2 million in 30.06.00).





Jaanus Kosemaa

PR manager

+372 66 51 800