Eesti Telekom                 NEWS RELEASE                12/03/2003 10:00



ACQUISITION



Eesti  Telekom's  fully  owned  Elion  Enterprises   Ltd.

acquired  all  of  the shares of related  company  EsData

Ltd.,   which  offers  data  communication  and  Internet

services.



In accordance with the purchase and sale agreement, Elion

Enterprises purchased 70 percent of the shares of  EsData

from  TeliaSonera for approximately 6.776 million  kroons

(433,000  euros).  So  far  Elion  Enterprises  owned  30

percent of the shares of EsData. As TeliaSonera has  48.9

per  cent  ownership  in Eesti Telekom  Ltd,  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.



Acquisition  consolidates Elion Group data  communication

and  Internet services and utilizes synergies in  network

management and customer service between both companies.



EsData  (www.estnet.ee)  was  founded  in  1993.  Company

offers  digital  leased  lines,  Internet  leased  lines,

Internet dial-up service, global IP transit service,  web

hosting  and  server  hosting  services.  EsData  has   9

employees,  the company´s turnover was 10 million  kroons

(640,000 euros) and profit 81,000 kroons (5200 euros)  in

2002.





Hille Võrk

Financial Manager

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