Harju Elekter                 NEWS RELEASE                      09/09/2003



ACQUISITION OF SUBSIDIARY IN LITHUANIA



On 8 September 2003, AS Harju Elekter signed a preliminary contract for 

acquisition of a 51% holding in the Lithuanian company UAB Rifas. The 

unconsolidated net sales of Rifas are LIT 7m or EEK 32m and the Group

employs 61 persons. The transaction will close in week 40; the parties

are not disclosing the price.



Harju Elekter buys 1250 shares or 25% of the company from the former owner.

A placing of 2650 new shares will be held for Harju Elekter. After the

transaction, AS Harju Elekter will own 51% of UAB.



UAB Rifas was founded in 1991. Its main business is design of automatic

equipment, manufacture and installation of control centres. Besides the

parent company, the Rifas Group comprises the 51% subsidiary UAB Automatikos

Iranga (sales in 2002: LIT 1.3m) and the 50.3% subsidiary UAB Birzu

Montuotojas (sales in 2002: LIT 1.1m). The main business of Automatikos

Iranga is the design of industrial and process automatic equipment, and

Birzu Montuotojas is specialised in electrical installation work. The main

business of the parent company Rifas is the manufacture of electrical and

control boards. The unconsolidated sales of the company for the 2002 were

LIT 7m or EEK 32m, and the profit margin is 8-10%.



After acquiring the subsidiary, Harju Elekter will have not only a

considerable share in the automatics sector, but goods prospects to increase

the market share in the Lithuanian energy distribution and building sector.

To promote sales in Lithuania, the capacity of the Rifas plant will be

doubled. Close cooperation between the Estonian, Finnish, and Lithuanian

subsidiaries of Harju Elektri Grupp will imply a wider product range.



Harju Elekter was founded in 1968 and is now a leading producer of

electrical equipment and materials in the Baltic States. Harju Elekter has

holdings in the subsidiaries AS Eltek (100%) and Satmatic Oy (100%), and in

the related companies AS Keila Kaabel (34%) and AS Saajos Balti (33.3%).

Harju Elekter also has a 12% holding in PKC Group Oyj, a company listed on

the Helsinki Stock Exchange. The group’s sales amounted to EEK 149.6m (EUR

9.6m) in the first half of 2003, of which 48.3% was exported. The net profit

was EEK 65.6m (EUR 4.2m).







Andres Allikmäe

Chairman of Management Board

+372 6 747 400





Moonika Vetevool

PR manager

+372 6 712 761