AS EESTI TELEKOM                      STOCK EXCHANGE RELEASE       22 APRIL 2005



                         PROPOSAL FOR PROFIT DISTRIBUTION





The net profit of AS Eesti Telekom was 993,178 thousand EEK (63,477 thousand  EUR)

in 2004.  The  company's  distributable  funds  totalled  2,182,349  thousand  EEK

(139,478 thousand EUR).



The Management Board's proposal is that  the  distributable  funds  for  2,182,349

thousand EEK (139,478 thousand EUR) should be allocated as follows:



1) To allocate to the statutory legal reserve 310 thousand EEK (20 thousand EUR).

2) The number of shares is 137,954,528. To distribute between shareholders and  to

   pay out to shareholders as dividends 1,103,636 thousand  EEK  (70,535  thousand

   EUR), i.e. 8.00 EEK (0.51 EUR) per share.

3) Left to be carried forward in the balance sheet 1,078,403 thousand EEK  (68,923

   thousand EUR).













      Jaan Männik                             Hille Võrk



      Chairman of the                          Member of the

      Management Board                         Management Board