On  the  February  18,1999  JSC"  Hansabank  Insurance"  and JSC "Eesti

Elukindlustus"  signed the merger agreement. The merging party is Eesti

Elukindlustus  and  the  merged party is Hansabank Insurance. The share

exchange  ratio  in the merger process is 1:1. The share capital of the

merged institution is EEK 36 million.

At the end of 1998 the consolidated market share of Hansabank Insurance

and Eesti Elukindlustus was 60%.

The extraordinary shareholders meetings will be held in March 1999.

Both companies are fully-owned subsidiaries of JSC " Hansapank".