Eesti Telekom                 FINANCIAL RESULTS           03/06/2003 10:00



2002.A. AUDITED RESULTS



Consolidated  Income Statements, Balance Sheets

                    and Cash Flow Statements of

                        AS Eesti Telekom

                  for the financial year ended

                        31 December 2002







AS Eesti Telekom and Subsidiary Companies



Income statements for the year ended 31 December 2002



Financial statements are prepared in thousands of kroons (EEK)

Income statements

                                        CONSOLIDATED

                                     2002       2001

                                            Restated

Revenues                                   

Net sales                       4,467,311  4,154,438

Change in work-in-progress            864        529

Capitalized self-constructed       65,384     87,112

assets

Other revenues                     91,737     42,461

Total revenues                  4,625,296  4,284,540

Operating expenses                        

Materials, consumables,        (1,503,759) (1,351,555)

supplies and services

Other operating expenses        (434,844)  (434,137)

Personnel expenses              (513,005)  (534,754)

Other expenses                   (42,786)   (33,118)

Total operating expenses       (2,494,394) (2,353,564)

Profit / (loss) from            2,130,902  1,930,976

operations before depreciation

Depreciation and amortisation  (1,000,468) (1,135,661)

Profit / (loss) from            1,130,434    795,315

operations

Net income/(expenses) from        (5,153)     26,828

subsidiaries and associates

Other net financing items           6,443   (11,719)

Profit before tax               1,131,724    810,424

Income tax on dividends          (91,298)   (30,932)

Profit after tax                1,040,426    779,492

Minority interest                       -      (557)

Net profit for the period       1,040,426    778,935

Earnings per share                        

Basic earnings per share (in         7.57       5.67

kroons)

Diluted earnings per share (in       7.57       5.67

kroons)





AS Eesti Telekom and Subsidiary Companies



Balance sheets as of 31 December 2002



Financial statements are prepared in thousands of kroons (EEK)

Balance sheets

                                  CONSOLIDATED

                                    2002       2001

ASSETS                                    

Non-current assets                        

Property, plant and            2,673,673  3,043,869

equipment

Goodwill                           3,687     14,814

Licences, patents and             38,853     41,325

trademarks

Investments in subsidiaries       22,696     17,940

and associates

Other investments                  2,710      2,758

Other non-current                  2,048      5,766

receivables

Total non-current assets       2,743,667  3,126,472

Current assets                                     

Inventories                       93,428    104,013

Trade and other receivables      641,300    541,440

Cash and cash equivalents        963,043    464,217

Total current assets           1,697,771  1,109,670

TOTAL ASSETS                   4,441,438  4,236,142

EQUITY AND LIABILITIES                             

Capital and reserves                               

Issued capital                 1,373,833  1,373,833

Reserves                         447,348    447,348

Translation reserve                 (25)          -

Accumulated profits            2,078,979  1,794,170

Total capital and reserves     3,900,135  3,615,351

Non-current liabilities                            

Interest-bearing loans and        19,761     49,115

borrowings

Current liabilities                                

Trade and other payables         469,537    466,028

Interest-bearing loans and        35,706     88,166

borrowings

Provisions                        16,299     17,482

Total current liabilities        521,542    571,676

TOTAL EQUITY AND               4,441,438  4,236,142

LIABILITIES







AS Eesti Telekom and Subsidiary Companies



Cash flow statements for the year ended 31 December 2002



Financial statements are prepared in thousands of kroons (EEK)

Cash flow statements

                                     CONSOLIDATED

                                       2002      2001

Cash flows from / (to) operating             

activities

Profit before income tax on       1,131,724   810,424

dividends and minority

   interest

Adjustments for:                                     

Depreciation and amortization     1,000,468 1,135,661

(Profit) / loss from sales and     (54,718)     1,473

write-off of fixed assets

(Income) / expense from               5,153  (26,828)

subsidiaries and associates

(Profit) / loss from revaluation      (294)     7,823

of investments

Interests (income) / expense,      (16,582)   (3,070)

net

Other non-cash adjustments             (47)     (309)

Operating profit / (loss) before  2,065,704 1,925,174

working capital changes

Change in current receivables      (87,679)  (56,615)

Change in inventories                11,676    45,210

Change in current liabilities         (782) (159,419)

Adjusted cash generated from /    1,988,919 1,754,350

(used in) operations

Interest paid                       (7,663)  (15,179)

Income tax paid                    (91,298)         -

Net cash from / (used in)         1,889,958 1,739,171

operating activities

                                                     

Cash flows / (to) from investing                     

activities

Purchase of property, plant and   (592,798) (914,606)

equipment

Purchase of licenses               (33,682)  (35,928)

Acquisition of subsidiaries               -  (14,486)

Acquisition of associated          (10,000)   (6,000)

companies

Purchase of investments, shares           -   (1,510)

and other

Proceeds from sales of property,     85,421    11,426

plant and equipment

Proceeds from sales of                    -    43,500

investments

Loans granted                         (440)   (4,770)

Cash receipts from repayment of          60        84

loans

Dividends collected                      96       181

Interest collected                   16,736    19,487

Net cash from / (used in)         (534,607) (902,622)

investing activities

                                                     

Cash flow used in financing                          

activities

Proceeds from long-term debt            484       440

Repayment of long-term debt            (10)      (15)

Repayment of unsecured short-             - (100,000)

term bonds

Proceeds from nonconvertible          1,576         7

long-term debt

Repayment of nonconvertible long-   (5,951)   (5,223)

term debt

Repayment of long-term             (79,238) (105,038)

borrowings

Repayments of obligations under    (17,769)  (16,629)

finance lease liabilities

Proceeds from short-term                  -    78,233

borrowings

Repayment of short-term                   -  (78,233)

borrowings

Dividends paid                    (755,617) (755,617)

Net cash used in financing        (856,525) (982,075)

activities

                                            

Net increase / (decrease) in        498,826 (145,526)

cash and cash equivalents

Cash and cash equivalents at        464,217   609,743

beginning of year

Cash and cash equivalents at end    963,043   464,217

of year





Hille Võrk

Finantsjuht

6 272 460