Merko Ehitus                  NEWS RELEASE                      07/30/2003



MERKO EHITUS SELLS ITS SHARE IN MATEK



On 29 July 2003 AS Merko Ehitus and OÜ Investar concluded a contract

to sell the 71.62% share of AS Merko Ehitus in OÜ Matek.



The contract sum is 3.9 million kroons (249 255 EUR) of which 

3.2 million kroons is paid upon concluding the contract and

0.7 million kroons will be paid within one (1) year after signing the

contract.



Matek's primary field of operations lies in producing single-family

house constructions.



The above transaction shall not be considered as transaction with

related parties.





Ülo Metsaots

Financial director

6 805 104