EESTI TELEKOM

ANNOUNCEMENT



ACQUISITION



AS  Connecto, which is fully owned by AS Eesti  Telekom's

100%-owned  subsidiary AS Eesti Telefon, acquired  on  11

February  2002 all of the shares of network  construction

company SIA Link, which operates in Latvia.



In  accordance  with the purchase and sale agreement,  AS

Connecto purchased 100 percent of the shares of SIA  Link

from  SIA Fortech, which belongs to the MicroLink  Group.

By  mutual agreement, the parties have not disclosed  the

price of the purchase and sale transaction.



With  the  purchase of SIA Link, AS Connecto  intends  to

expand its strategic activities, i.e. the construction of

fixed-line   networks,   radio  networks   and   internal

networks, to the other Baltic States.



SIA  Link  was  founded  on 28  September  2000,  and  is

involved  mainly with the construction of indoor networks

and  wireless  exterior connections.   SIA  Link  has  20

employees  and  the  company's  annual  turnover   totals

roughly 10 million kroons (639,000 euros).



In   conformity  with  the  Stock  Exchange   Rules   and

Regulations,  we  hereby announce that  this  transaction

cannot  be  considered as a transaction with a  connected

person,  and  neither have the members of the Supervisory

Board  nor Management Board of Eesti Telekom any personal

interests in the transaction.



The  unaudited sales of AS Connecto, which offers design,

installation, construction and maintenance  services  for

telecommunications systems, totalled 212  million  kroons

(13.55  million euros) in 2001, and its unaudited  profit

totalled  8  million kroons (511,000 euros). The  average

number  of  employees in 2001 was 392. AS  Eesti  Telefon

transferred  the  construction  and  maintenance  of  its

telecommunications  networks to AS  Connecto  in  January

2001.





Hille Võrk

Financial Manager

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