Regarding the suspicions presented to Merko Ehitus Ltd. and Mr Toomas Annus


Today 15 October 2007, suspicions on bribe-offering and breach of trust were
presented to the company and its Chairman of the Supervisory Board, Mr Toomas
Annus. 

Merko Ehitus Ltd. and Toomas Annus are in opinion that the suspicions are not
understandable and the company's managing and supervisory bodies have acted
and act correctly and in full compliance with the law of the Republic of
Estonia. 

Merko Ehitus Ltd. and Mr Toomas Annus believe that an objective investigation
will be carried out in a swift and efficient manner and both the company and
Mr Annus make all efforts to clarify the truth. To protect its rights the
company has signed a legal assistance agreement with the law firm  Teder,
Glikman & Partners.

Merko Ehitus Ltd. is committed to its customers in fulfilling the contractual
obligations and shall continue to inform the Stock Exchange as any updates
and new facts are revealed, as stipulated it the law.

Tõnu Korts
Member of the Board
+372 6 805 105