Hüvitusfond                   NEWS RELEASE                      05/15/2002



INTEREST AND REDEMPTION OF SERIES VII



Compensation  Fund  redeems its public  issue  of  bonds  of

series  VII on May 27, 2002. On the redemption day  interest

income and redemption amount will be paid to investors.

Interest  income  will be paid to those investors,  who  are

bondholders  acocording to the data of The Estonian  Central

Depository  for Securities (ECSD) on May 25,  2002,  end  of

day.

Redemption  sum  will be paid to those  investors,  who  are

bondholders  acocording to the data of The Estonian  Central

Depository for Securities (ECSD) on May 27, 2002 at 8 am.

The  principal interest on bonds of VII series is  7%  or  7

Estonian kroons per one bond and additional interest for the

last  half-year  is  0% according to  the  decision  of  the

Council of Compensation Fund.

The  outstanding amount of VII series bonds  is  40  million

kroons in nominal value.

Interest   income  paid  by  Compensation  Fund   to   those

bondholders  who  are natural persons,  is  not  subject  to

personal income tax.

Compensation  Fund pays out in total 2,8 million  kroons  as

interest  income and 40 million kroons as redemption  amount

to holders of VII series bonds.

The public issue of VII series bonds took place from May  27

to June 21, 1996. 2440 natural persons and 17 legal entities

participated in the issue.





Jaanus Kosemaa

head of public relations

6651800, 05104614