Eesti Telekom                 NEWS RELEASE                      07/03/2003



ACQUISITION



Connecto   Ltd.,   which  is  51%-owned   subsidiary   of

Eesti  Telekom's  fully  owned  Elion  Enterprises   Ltd.

(previously  Eesti  Telefon Ltd.), acquired  all  of  the

shares   of  Estonian  telecommunication  company  Reveko

Telekom Ltd.



In  accordance  with the purchase and sale agreement,  AS

Connecto  purchased 55 percent of the  shares  of  Reveko

Telekom  from TeliaSonera and 45 percent of  shares  from

Estonian  private persons. The price of the  deal  is  14

million  kroons  (0.9 million euros). As TeliaSonera  has

48.9  per cent ownership in AS Eesti Telekom, the  parent

company of the Eesti Telekom Group, the transition can be

treated  as  a  transaction with related  party.  Neither

Council  nor  Management Board of Eesti Telekom  have  no

other personal interest in the transaction.



Reveko Telekom (www.reveko.ee) was founded in 1995. It is

involved  in  different indoor solutions: installing  and

construction of telecommunication systems and networks as

well   as  operator  services.  Reveko  Telekom  has   22

employees, the company´s turnover was 35.5 million kroons

(2.3 million euros) and profit 1.3 million kroons (83,000

euros) in 2002.



As  providing  indoor  solutions  is  one  of  Connecto´s

strategic  business  areas,  the  acquisition  allows  to

strengthen Connecto´s position in the Estonian market and

to speed up the development of the company.



As  for the turnover AS Connecto (www.connecto.ee) is one

of  the  largest company in the Baltics, offering design,

installation, construction and maintenance  services  for

telecommunication and electrical systems. The turnover of

AS  Connecto totalled 260.8 million kroons (16.6  million

euros)  in  2002,  and its profit totalled  12.6  million

kroons  (0.8  million euros). Company was established  in

2001 and employs 445 people. The company has a subsidiary

in Latvia Connecto Latvia.





Hille Võrk

Financial Manager

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