Harju Elekter                 NEWS RELEASE                      05/09/2003



LOAN CONTRACT SIGNED



On 29 April 2003, AS Harju Elekter and Sampo Pank Finland concluded a loan

contract in the amount of one million euros (EEK 15.6m) with a the repayment

deadline of 8 years. The parties have agreed not to disclose the applicable 

loan interest. The money will be used to build a new production hall within 

the framework of the expandsioning of the activities of PKC Eesti. The total 

cost of the project is EEK 26m; own funds willshall be used to cover the 

portion not provided by the loan.



PKC Eesti, which is the former cable harnesses factory of AS Harju Elekter, 

has leased production premises from AS Harju Elekter since July 2002. 

Currently Harju Elekter leases to PKC Eesti premises with a total area of 

13,400 m2 of premises, of which 4700 m2 are located in Haapsalu. The 

commissioning of the new production hall in July 2003 will add another 

4500 m2 of leased premises in Keila. In 2002, Harju Elekter earned EEK 12.5m 

by leasing production and other premises.







Andres Allikmäe

Chairman of Management Board

+372 6 747 400





Moonika Vetevool

PR manager

+372 6 712 761