Merko Ehitus                  NEWS RELEASE                      01/28/2003



APPLYING FOR OIL-SHALE MINING PERMISSION



OÜ Merko Kaevandused, a 100 per cent subsidiary of AS Merko Ehitus,

has concluded a land use contract for the period of fifteen years

with Erast Küttim regarding Usnova, a landed estate consisting of

circa 550 hectares situated in Kuninga village of Illuka district

in Ida-Virumaa.

An application for the oil-shale mining permission is currently

being processed.

The estimated investments in the project would be around 80 to 150

million Estonian kroons (5 to 10 million euros). Quarrying would be

carried out in the form of opencast mining and the mining project

is expected to last from ten to fifteen years.





Ülo Metsaots

Management Board Member

+ 372 6 105 110