Harju Elekter                 NEWS RELEASE                      10/01/2003



ACQUISITION OF SUBSIDIARY IN LITHUANIA



According to the preliminary contract made on 8 September 2003, the

transaction by which AS Harju Elekter acquired 51% of the shares of UAB Lifas

(Lithuania) closed today, on 1 October 2003. Chairman Andres Allikmäe and

members: Endel Palla, Ülo Merisalu, Stanislovas Slapsys and Mindaugas Slapsys

were appointed to the management board of the company. Stanislovas Slapsys

continues as the Managing Director. The parties agreed not to disclose the

price of the transaction.



UAB Rifas was founded in 1991. The main business of the company is the

manufacture and sale of electrical control and distribution units and the

design and installation of industrial automation equipment. Besides the parent

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

and the 50.3% subsidiary UAB Birzu Montuotojas. The unconsolidated sales of

UAB Rifas for the 2002 were LIT 7m or EEK 32m, and the profit margin is 8-10%.

The Group employs 61 persons.



After acquiring the subsidiary, Harju Elekter will have 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 Elekter Group 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 almost 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