Merko Ehitus                  NEWS RELEASE                      01/16/2003



ACQUIRING A ROAD CONSTRUCTION COMPANY



On January 15th 2003 Merko Ehitus concluded a purchase contract to

acquire 100% stake in AS Viskomi Ehitus.

 

The branch of business of AS Viskomi Ehitus covers road construction

in Estonia and company's net sales in 2001 were 42,2 million EEK (2,7

million EUR) and net profit 4,4 million EEK (0,28 million EUR).

2002 interim results were net sales 39,5 million EEK (2,5 million EUR)

and net profit 3,8 million EEK (0,24 million EUR).  



Total cost of the contract will not be made public upon partners'

mutual agreement.



The above transaction shall not be considered as transaction with

related parties.





Ülo Metsaots

Management Board member

+372 6 105 110