APPLICATION FOR SUSPENSION OF TRADING AND ADDING WATCH NOTATION TO MERKO EHITUS SHARES

On March 14, 2008 AS Merko Ehitus announced through the TSE information system
of an intention to evaluate restructuring alternatives with a purpose of
separating business activities and criminal proceedings related to land swap
transactions. According to the announcement the management of the company will
present its proposals about group's restructuring to shareholders by April 15,
2008, the latest. The company also informed investors about a request of
suspension of trading in shares of Merko Ehitus until the restructuring
proposal is disclosed. 

On March 14 AS Merko Ehitus filed an application for suspension of trading with
Merko Ehitus shares until the restructuring proposal is disclosed through the
TSE information system. 

The Managing director of TSE decided to reject the application because in the
TSE's opinion the long-term suspension of trading due to the restructuring
intention disclosure is not in investors' best interests. In a situation where
a listed company has an obligation to disclose all significant information
through the stock exchange's information system and by that ensure equal
treatment of all investors, TSE does not approve long term obstruction of
trading. TSE is ready to re-evaluate suspension of trading if new significant
circumstances arise or in case of insider information leakage. 

The TSE would like to point the investors' attention to circumstances that the
effect that restructuring of a company may have on its assets, liabilities and
future prospects cannot be evaluated currently. Therefore, the investors'
interests might be harmed, especially considering the circumstance that on the
moment of disclosure of the information the manner, time schedule and
accompanying circumstances of reconstruction are not known. 

Based on this information, the Managing director of TSE decided to add a watch
notation to the shares of AS Merko Ehitus starting from March 17, 2008, based
on article 3.5.4.7 of the chapter Supervision of TSE Rules. 

Based on the clause 3.5 of the chapter Supervision of TSE Rules, TSE has right
to add a watch notation to a share and to trading information displayed on
the Web site to draw the market participants' attention to significant
circumstances related to a security or an issuer. According to the clause
3.5.4.7 of the chapter Supervision of TSE Rules, one of the grounds for adding
the watch notation is a situation that may materially damage the interests of
investors in the opinion of TSE. 


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