Merko Ehitus                  FINANCIAL RESULTS                 03/18/2004



AUDITED FINANCIAL RESULTS 2003



Income statement 2003

consolidated, audited in thousand EEK and EUR



                                        EEK                      EUR

                                  2003         2002         2003        2002



Sales                        2 707 663    1 669 597      173 051     106 706

Cost of sales               (2 429 125)  (1 499 283)    (155 249)    (95 821)



Gross profit                   278 538      170 314       17 802      10 885



Marketing expenses             (15 832)     (14 118)      (1 012)       (902)

Administrative expenses        (73 347)     (49 821)      (4 688)     (3 184)

Other operating income          15 326        2 156          980         138

Other operating expenses        (2 137)     (10 015)        (137)       (640)



Operating profit               202 548       98 516       12 945       6 296



Financial income and expenses

from stocks of subsidiaries        542            0           35           0

Financial income and expenses

from stocks of associates        4 446        2 739          284         175

Financial income and expenses from

other noncurrent fin. invest.    1 084        1 674           69         107

Interest expense                (2 503)        (805)        (160)        (51)

Foreign exchange gain           (2 692)      (3 739)        (172)       (239)

Other financial income and

expense                         (5 684)       4 386         (363)        280

Total financial income and

expenses                        (4 807)       4 255         (307)        272



Profit before taxes            197 741      102 771       12 638       6 568



Income tax                     (10 901)      (3 209)        (697)       (205)



Net profit for the

financial year                 186 840       99 562       11 941       6 363



Minority interest               (2 367)        (699)        (151)        (45)



Net profit for the group       184 473       98 863       11 790       6 318

				

Net profit per share

(basic and diluted, in EEK&EUR)  20,84        11,17         1,33        0,71





Balance sheet as of 31.12.2003

consolidated, audited in thousand EEK and EUR



                                        EEK                     EUR

                               31.12.2003  31.12.2002  31.12.2003  31.12.2002



Cash and cash equivalents        240 152      96 310      15 348       6 155

Marketable securities             36 096      53 018       2 307       3 388

Accounts receivable              408 296     164 714      26 095      10 528

Other receivables                 27 385      25 339       1 750       1 619

Accrued income                       673       1 403          43          90

Prepaid expenses                  21 180      14 433       1 354         922

Inventories                      255 263     224 340      16 314      14 338



TOTAL CURRENT ASSETS             989 045     579 557      63 211      37 040



Long-term financial assets        32 489      46 241       2 077       2 955

Real-estate investments           52 869      35 308       3 379       2 257

Noncurrent physical assets        73 051      50 390       4 669       3 221

Intangible assets                 (1 592)     (5 283)       (102)       (338)



TOTAL NON-CURRENT ASSETS         156 817     126 656      10 023       8 095



TOTAL ASSETS                   1 145 862     706 213      73 234      45 135



Debt obligations                  12 447      12 805         796         818

Customer prepayments              17 881      42 820       1 143       2 737

Merchandise credit               267 597     178 151      17 103      11 386

Other payables                    24 199       4 712       1 547         301

Tax liabilities                   21 352      16 351       1 365       1 045



Accrued expenses                  21 095      19 976       1 348       1 277

Current provisions               286 728     108 285      18 324       6 921



TOTAL CURRENT LIABILITIES        651 299     383 100      41 626      24 485



Long-term payables                16 399       2 604       1 048         166

Other long-term payables           9 532      14 900         609         952



TOTAL NON-CURRENT LIABILITIES     25 931      17 504       1 657       1 118



TOTAL LIABILITIES                677 230     400 604      43 283      25 603



Share capital                     88 500      88 500       5 656       5 656

Share premium                      2 950       2 950         189         189

Mandatory legal reserve            8 850       8 850         566         566

Retained earnings                180 430     101 480      11 531       6 486

Net profit for the financial year184 473      98 863      11 790       6 318

Exchange rate differences         (1 380)        174         (88)         11

TOTAL OWNERS' EQUITY             463 823     300 817      29 644      19 226



Minority interest                  4 809       4 792         307         306



TOTAL LIABILITIES AND

OWNERS' EQUITY                 1 145 862     706 213      73 234      45 135





Alar Lagus

Management Board member

+372 6 805 109