HÜVITUSFOND

ANNOUNCEMENT



INCREASED HOLDING IN SUBSIDIARY



After the share issue Hüvitusfond's holding in its subsidiary 

AS Werol Tehased grew from 67.70% to 79.80%.



On 17.05.01 the general meeting of AS Werol Tehased shareholders 

decided to cancel 2,500,000 of the company's shares with EEK 10 par 

value in order to cover the net loss posted in previous years. As a 

result the company's share capital amount decreased from EEK 53.3 

million to EEK 28.3 million. The shareholders also decided to issue 

625,000 new shares with EEK 10 par value, at issue price of EEK 10.



The subscription period for the issue was 17.06.01-03.07.01.

Hüvitusfond subscribed for 498,873 shares; the other shareholders, 

AS Lõunatööstus and AS Era Pank (bankrupt), did not subscribe for 

shares to be issued. The Management Board of AS Werol Tehased cancelled 

126,127 unsubscribed shares. As a result of the issue the share capital 

amount of AS Werol Tehased grew by EEK 5 million to EEK 33.3 million. 

After the issue Hüvitusfond owns 82.84%, AS Era Pank (bankrupt) 7.25%,

AS Lõunatööstus 4.97% and AS Veland Verad 4.94% holding in AS Werol 

Tehased share capital.



Reduction and increase of AS Werol Tehased share capital was due to 

loss posted in previous years, as a result of which the company's 

owners' equity amount was not in compliance with the requirements 

stipulated in §301 of the Commercial Code. Also the company's capital 

base needed to be strengthened in order to support the company's growth.





Jaanus Kosemaa

PR manager

+372 66 51 800