Market announcement

Title

Division Plan of AS Merko Ehitus

Message

On 30 April 2008, AS Merko Ehitus signed a division plan whereby AS Merko
Ehitus will be divided such that AS Merko Ehitus business, i.e. all assets,
liabilities and contracts, including shareholdings in other companies, as well
as the business name of “Merko Ehitus” will be separated, except for liquid
assets to the amount equal to the possible maximum amount of consequences of
the criminal proceedings in the so-called land swap case and contingent
liabilities related to the criminal proceedings, and will be transferred to a
new company to be founded, which will be operating under the business name of
Merko Ehitus. The division plan will enter into force upon its approval by the
general meeting of the shareholders of AS Merko Ehitus. For passing the
resolution, at least two-thirds of the votes represented at the general meeting
must be in favour. At the general meeting, the management board of AS Merko
Ehitus will explain the legal and economic consequences of the division. 

The division plan is available for examination in the Registration Department
of Harju County Court, on the Tallinn Stock Exchange website at
www.ee.omxgroup.com, and at the seat of AS Merko Ehitus. In addition to the
division plan, the division report, the auditor's report and the three
preceding annual reports and activity reports of AS Merko Ehitus will be made
available to all shareholders for examination at AS Merko Ehitus website
www.merko.ee and at the seat of AS Merko Ehitus one month before the general
meeting. 

The advisors of AS Merko Ehitus in the division procedure are the investment
bank GILD Bankers together with Law Office Tark & Co. 

For further information, please contact:

Tõnu Toomik 
Chairman of Management Board 
6 805 105
merko@merko.ee

Alar Lagus
Member of the Management Board
6 805 109
merko@merko.ee