Eesti Telekom                 NEWS RELEASE                      12/19/2002



CONNECTO'S AGREEMENT WITH LATTELEKOMIGA



AS Connecto has concluded an agreement with Lattelekom



A  framework agreement for the construction of networks  was

concluded this week between AS Connecto’s Latvian subsidiary

SIA  Connecto Latvia and Latvia’s largest telecommunications

company  SIA  Lattelekom. In accordance with  the  concluded

agreement, Connecto Latvia will become one of four companies

that  will  begin to plan and construct Lattelekom’s  fibre-

optic and copper cable based telecommunications networks.



Lattelekom is Connecto’s most significant client in  Latvia,

and the agreement offers SIA Connecto Latvia the possibility

to  develop  in  the  area of fixed  networks,  through  the

provision of planning and construction services. At the same

time,  Connecto Latvia will obtain the opportunity to  offer

the full range of Connecto services - planning, construction

and maintenance - to local construction companies and owners

of telecommunications infrastructure.



Connecto  predicts a turnover of 25 million kroons (about  1

million  lats)  in Latvia in the coming year. This  turnover

does  not  include materials; the main supplier of materials

in Latvia is Lattelekom itself.



AS  Connecto is a 100%-owned subsidiary of AS Eesti Telefon,

and in 2001 had a turnover of 212 million kroons and profits

of  8.4 million kroons. AS Connecto employs 450 people,  and

has  one of the largest turnovers of companies in the Baltic

region  that  specialise in the construction and maintenance

of  communications networks. SIA Connecto Latvia has been  a

100%-owned subsidiary of AS Connecto since February 2002.





Hille Võrk

Financial Manager

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