RESULTS OF OPERATIONS - FOR THE 3rd QUARTER 2007, EEK


MANAGEMENT REPORT                                                               
                              

Overview                                                                        

During the 3rd quarter of 2007 the Company's total sales increased, year on     
year, by 13.1% to 168.7 mln EEK. Total water and sewerage services sales volumes
increased by 0.5%. Sales to residential customers increased by 9.9% year on     
year, sales to commercial customers within the service area increased by 4.3%   
year on year, and sales to commercial customers outside of the service area     
increased by 43.6% reaching 637 000 m3 or 4.5 mln EEK year on year. The         
Company's quarterly operating profit was 88.5 mln EEK, which is a 10.1 mln EEK  
increase compared to the 3rd quarter of 2006. The Company invested 165.3 mln    
EEK, from which 106.7 mln EEK was invested in networks extension and            
rehabilitation.                                                                 

--------------------------------------------------------------------------------
| mln EEK           | 3 Q |  3 Q   | Chan | 9 months  |  9 months  |  Change   |
|                   | 2007|  2006  |  ge  |   2007    |    2006    |           |
|                   |     |        |      |           |            |           |
--------------------------------------------------------------------------------
| Sales             | 168.7|  149.2 | 13.1 |     550.4 |      485.7 |     13.3%
| 
|                   |      |        |    % |           |            |          
| 
--------------------------------------------------------------------------------
| Main operating    | 157.1|  144.6 | 8.7% |     482.6 |      440.3 |      9.6%
| 
| activities        |      |        |      |           |            |          
| 
--------------------------------------------------------------------------------
| Other operating   | 11.5 |    4.6 | 151. |      67.8 |       45.4 |     49.2%
| 
| activities        |      |        |   9% |           |            |          
| 
--------------------------------------------------------------------------------
| Gross profit      | 104.8|   92.4 | 13.4 |     334.3 |      282.2 |     18.5%
| 
|                   |      |        |    % |           |            |          
| 
--------------------------------------------------------------------------------
| Gross profit      | 62.1%|  61.9% | 0.3% |     60.7% |      58.1% |      4.5%
| 
| margin %          |      |        |      |           |            |          
| 
--------------------------------------------------------------------------------
| Operating profit  | 88.5 |   78.4 | 12.8 |     284.0 |      263.5 |      7.8%
| 
|                   |      |        |    % |           |            |          
| 
--------------------------------------------------------------------------------
| Operating profit  | 52.4%|  52.5% | -0.2 |     51.6% |      54.2% |     -4.9%
| 
| margin %          |      |        |    % |           |            |          
| 
--------------------------------------------------------------------------------
| Profit before     | 76.7 |   67.5 | 13.7 |     251.2 |      231.8 |      8.3%
| 
| taxes             |      |        |    % |           |            |          
| 
--------------------------------------------------------------------------------
| Profit before     | 45.5%|  45.2% | 0.6% |     45.6% |      47.7% |     -4.4%
| 
| taxes margin %    |      |        |      |           |            |          
| 
--------------------------------------------------------------------------------
| Net profit        | 76.7 |   67.5 | 13.7 |     195.9 |      184.9 |      5.9%
| 
|                   |      |        |    % |           |            |          
| 
--------------------------------------------------------------------------------
| ROA %             | 3.1% |   2.8% | 12.3 |      8.0% |       7.7% |      4.6%
| 
|                   |      |        |    % |           |            |          
| 
--------------------------------------------------------------------------------
| Debt to total     |52.9% | 54.9%  |-3.7% |     52.9% |      54.9% |  -3.7%   
| 
| capital           |      |        |      |           |            |          
| 
| employed          |      |        |      |           |            |          
| 
--------------------------------------------------------------------------------

Gross profit margin - Gross profit / Net sales                                  
Operating profit margin - Operating profit / Net sales                          
Profit before taxes margin - Profit before taxes / Net sales                    
ROA - Net profit /Total Assets                                                  
Debt to Total capital employed - Total Liabilities / Total capital employed     


Profit and Loss Statement                                                       

3rd quarter 2007                                                                

Sales                                                                           

In the 3rd quarter of 2007 the Company's total sales increased, year on year, by
13.1% to 168.7 mln EEK.  Sales from the Company's main operating activities were
157.1 mln EEK. Sales in the main operating activity principally comprise of     
sales of water and treatment of wastewater to domestic and commercial customers 
within and outside of the services area, and fees received from the City of     
Tallinn for operating and maintaining the stormwater system.                    

Sales of water and wastewater treatment were 144.6 mln EEK, a 7.6% increase     
compared to the third quarter of 2006, resulting from the 10.8% increase in     
tariffs from 1 January 2007 for the Company's residential and commercial        
customers.                                                                      

Included within this amount were the following increases by sector: Sales to    
residential customers increased by 9.9% to 77.5 mln EEK. Sales to commercial    
customers within the service area increased by 4.3% to 59.9 mln EEK. Sales to   
commercial customers outside of the service area - primarily bulk volumes of    
wastewater treatment services provided to the surrounding municipalities -      
increased by 43.6% reaching 637 000 m3 or 4.5 mln EEK. Overpollution fees       
received were 0.6 mln EEK lower than in the 3rd quarter of 2006.                

In the third quarter of 2007, the volumes sold to residential customers were    
influenced by the seasonality factor. As the third quarter of 2007 was          
extraordinary rainy compared to same period in 2006, the usage of gardening     
water was relatively lower, reflecting in lower sales. This loss of sales is to 
some extent (+2 mln EEK extra sales as specified below) recovered in the        
stormwater disposal and firehydrant services line, as due to the rainy season,  
the treatment volumes of stormwater increased.                                  

The volumes sold to commercial customers inside the service area decreased      
compared to the relevant period in 2006 due to several factors combined. Most of
the volumes lost in Tallinn are due to companies moving to the surrounding      
municipalities, attracted by cheaper real estate prices. Most of these customers
are re-captured through the bulk-supply contracts signed with the surrounding   
municipalities. In the 2nd quarter of 2007, one of the Company's biggest        
industrial customers moved its facilities out of our area, resulting in a volume
loss of 56 000 m3 in the 3rd quarter only. We have recognised that the external 
factors such as the “bronze night” event and a heat on the real estate market   
have had their negative effect on the overall economy and also to the Company's 
commercial sales.                                                               

The statistics show, that following the “bronze night” event in April, the      
tourist flow to Tallinn has slowed down. Tourists are an important consumer     
group for the Company, who use the water and wastewater services through the    
commercial customers (hotels, restaurants, SPAs etc). Also the real estate      
market seems to have reached a point of stagnation. Even though the number of   
new apartments and business buildings constructed in Tallinn has continued to   
increase, a large share of new buildings remain vacant as commercial customers  
as well as people in need of space are moving to surrounding areas due to more  
affordable real estate prices. This trend is also reflected in the Company`s    
sales to surrounding areas, which has increased by 43.6% compared to the same   
period last year.                                                               

The sales from the operation and maintenance of the stormwater and firehydrant  
system increased by 24.5% to 10.3 mln EEK in the 3rd quarter of 2007 compared to
the same period in 2006. This is in accordance with the terms and conditions of 
the contract whereby the stormwater and firehydrant costs are invoiced based on 
actual volumes treated. This is contractually agreed up to 2015.                

Sales revenues from other operating activities, at 11.5 mln EEK (mainly         
connections and stormwater construction) was 7 mln EEK higher than in the 3rd   
quarter of 2006.                                                                

Cost of Goods Sold and Gross Margin                                             

The cost of goods sold for the main operating activity was 55.2 mln EEK in the  
3rd quarter of 2007, an increase of 2.3 mln EEK or 4.4% from the equivalent     
period in 2006.                                                                 
In the 3rd quarter of 2007 the Company has for the third successive quarter     
recorded zero failures in all pollution measures taken, and as a result the     
amount of pollution tax payable reduced by 1.7 mln EEK.                         

The increase in chemical costs was due to larger amount of wastewater treated in
the 3rd quarter of 2007 compared to the 3rd quarter of 2006, which was partly   
balanced by relatively low methanol prices in the 3rd quarter. The chemical     
costs were 5.5 mln EEK, which represents an 11.6% increase compared to the      
corresponding period in 2006.                                                   

Electricity costs increased by 0.9 mln EEK or 16.1% due to higher electricity   
prices and increased volume of wastewater treated in the 3rd quarter of 2007    
compared to the 3rd quarter of 2006.                                            

Salaries expenses increased by 0.3 mln EEK or 3.3%. As a consequence of the     
highly competitive labour market and rapidly growing salaries. The salaries     
increase is still in all categories below the overall increase in average       
salaries in Estonian market, which according to the latest statistics has       
increased by more than 20% year on year. In late 2006 all the Company's salaries
were reviewed and increased to ensure competitiveness in the market and retain  
key personnel.  However, the figure also reflects the efficiencies made from    
improvements in working practices that have led to a decrease in the headcount. 
In the 3rd quarter of 2007, the average number of people working for the Company
was 313 people, compared to 319 people in the 3rd quarter of 2006.              

Other cost of goods sold in the main operating activity increased by 2.4 mln    
EEK, or 30% year on year. In the 3rd quarter other costs increased due to       
increased costs on a number of support services contracts, such as transport,   
security services reflecting the significant increase in labour costs in        
Tallinn.                                                                        

As a result of all of the above the Company's gross profit for the 3rd quarter  
of 2007 was 104.8 mln EEK, which represents an increase of 12.4 mln EEK, or     
13,4%, compared to the gross profit of 92.4 mln EEK for the 3rd quarter of 2006.

Operating Costs and Operating Margin                                            

Marketing expenses increased by 0.9 mln EEK to 3.2 mln EEK during the 3rd       
quarter of 2007 compared to the corresponding period in 2006.  At the beginning 
of July 2007, the company formed a new business unit focusing on new business   
development. The increase in depreciation charges accounted within marketing    
expenses is due to the inclusion of the depreciation related to the completion  
of the last stage of implementation of the Customer Information and Billing     
system (KLIF).                                                                  

General administration expenses increased by 1 mln EEK to 12.1 mln EEK in the   
3rd quarter of 2007 as a consequence of an increase in salaries and other       
general administration expenses. Approximately 0.5 mln EEK accounted for        
switching from owning the computers into the lease contracts as well as         
outsourcing the maintenance of software development - a corresponding reduction 
can be found in the depreciation charge.  In addition to these changes there    
were higher technical services agreement and legal services costs.              

Included within the above cost categories are staff costs. These totaled 15.6   
mln EEK in the 3rd quarter of 2007, which is a 0.6 mln EEK or 4.2% increase     
compared to the same period in 2006, which as mentioned earlier was due to of   
the company wide revision of salaries.                                          

Other net income/expenses totalled a cost of 1.1 mln EEK in the 3rd quarter of  
2007 compared to a cost of 0.6 mln EEK in the 3rd quarter of 2006.              

As a result of all of the above the Company's operating profit for the 3rd      
quarter of 2007 was 88.5 mln EEK, an increase of 10.1 mln EEK compared to an    
operating profit of 78.4 mln EEK achieved in the 3rd quarter of 2006.           

Financial expenses                                                              

Net Financial expenses were 11.7 mln EEK in the 3rd quarter of 2007, which is an
increase of 0.8 mln EEK or 7.6% compared to the 3rd quarter of 2006. The        
Company's interest costs have increased by 14,6% compared to the 3rd quarter of 
2006. This is due to the fact that half of the Company's loans are connected to 
the 6 month Euribor rate, which was 4.228% in 3rd quarter of 2007 compared to   
3.298% in the 3rd quarter of 2006. The increase in interest expenses is         
partially offset by an increase in financial income earned during the 3rd       
quarter of 2007, as a result of a more favourable cash position, and increasing 
interest rates.                                                                 

Profit Before Tax                                                               

The Company's profit before taxes for the 3rd quarter of 2007 was 76.7 mln EEK, 
which is 9.2 mln EEK higher than the profit before taxes of 67.5 mln EEK for the
3rd quarter of 2006.                                                            

Results for the first nine months of 2007                                       

During the first nine months of 2007 the Company's total sales increased, year  
on year, by 13.3% to 550.4 mln EEK.  Sales from the Company's main operating    
activities were 482.6 mln EEK. Sales of water and wastewater treatment were     
447.8 mln EEK, a 9.1% increase compared to the first nine months of 2006.       

The Company's profit before taxes for the first nine months of 2007 was 251.2   
mln EEK, which is 19.3 mln EEK higher than the profit before taxes of 231.8 mln 
EEK in the relevant period in 2006. The results for the first nine months of    
2007 were impacted by the fact that the Ministry of Environment gave final      
approval to the success of the nitrogen project, which resulted in the release  
of a provision worth 13.3 mln EEK for environmental taxes. The results for the  
first nine months of 2006 were impacted by the sale of excess land in           
Paljassaare worth 24.1 mln EEK. When eliminating these one-offs, the underlying 
profit before tax has increased by 30.2 mln EEK to 237.9 mln EEK i.e. 14.6%     
year-on-year.                                                                   


Balance sheet                                                                   

During the nine months of 2007 the Company invested 165.3 mln EEK into fixed    
assets. Non-current assets were 2,186 mln EEK at 30 September 2007. Current     
assets decreased by 69.3 mln EEK to 261.1 mln EEK in the first nine months of   
the year, which was largely attributable to a decrease in cash reflecting the   
dividend payout.                                                                

Current liabilities decreased by 25.2 mln EEK to 127.9 mln EEK in the first nine
months of the year. This was mainly due to decreased trade and other payables   
and taxes payable.                                                              

The company continues to maintain its leverage level within its target range of 
50-60% with total liabilities to total capital employed of 52.9% as at 30       
September 2007. Long-term liabilities stood at 1,166.9 mln EEK at the end of    
September 2007, consisting almost entirely of the outstanding balance on the two
long-term bank loans.                                                           


Cash flow                                                                       

During the first nine months of 2007, the Company generated 270.2 mln EEK of    
cash flows from operating activities, an increase of 27.4 mln EEK compared to   
the corresponding period in 2006. Operating profit continues to be main driver  
for growth.                                                                     

In the first nine months of 2007 net cash outflows from investing activities    
were 98.6 mln EEK, which is 77.2 mln EEK more than in 2006. This was mainly due 
to increased investment levels. In the first nine months of the year, the       
company invested 165.3 mln EEK - 106.7 mln EEK networks extension and           
rehabilitation, 42.5 mln EEK Paljassaare wastewater treatment plant and         
wastewater treatment, 8.2 mln EEK water quality (Ülemiste water treatment plant 
and raw water) and 7.9 mln EEK other investments (IT, capital maintenance,      
meters, etc).                                                                   

Cash outflows from financing activities were 251.8 mln EEK during the first nine
months of the year compared to cash outflow of 204.9 mln EEK during the first   
nine months of 2006, reflecting increased dividend payments and related taxes.  

As a result of all of the above factors, the total cash outflow in the first    
nine months of 2007 was 80.2 mln EEK compared to a cash inflow of 16.5 mln EEK  
in the first nine months of 2006. Cash and cash equivalents stood at 169.3 mln  
EEK as at 30 September 2007.                                                    


Employees                                                                       

In the third quarter of 2007 the average number of employees was 313 people.    


Dividends and share performance                                                 

Based on the results of the 2006 financial year, the Annual General Meeting of  
shareholders of AS Tallinna Vesi voted to pay 196,010,000 EEK of dividends. Of  
this 10 000 EEK was paid to the owner of the B-share and 196 000 000 EEK, i.e.  
9.8 EEK per share to the owners of the A-shares.  Dividends were paid on 15 June
2007.                                                                           

As of 30 September 2007 AS Tallinna Vesi shareholders, with a holding over 5%,  
were:                                                                           

--------------------------------------------------------------------------------
| United Utilities (Tallinn) BV                     | 35.3%                    |
--------------------------------------------------------------------------------
| City of Tallinn	                                  | 34.7%                    |
--------------------------------------------------------------------------------
| Morgan Stanley + Co International Equity client   | 7.43%                    |
| account                                           |                          |
--------------------------------------------------------------------------------
| Nordea Bank Finland Plc clients account trading   | 5.55%                    |
--------------------------------------------------------------------------------

At the end of the reporting period, 30 September 2007, the closing price of the 
AS Tallinna Vesi share was 226.88 EEK (14.50 EUR), which is a 9.5% increase     
compared to the closing price of 207.32 EEK (13.25 EUR) at the beginning of the 
period, outperforming the market as the OMX Tallinn index dropped by 6.4% during
the relevant period.                                                            


Operational achievements in 2007                                                

The work on the new Paljassaare sludge processing building nears completion and 
commissioning activities have begun with full hand over programmed for October  
2007. The project provides for the more effective and efficient operation and   
maintenance of this equipment and will realise further benefits in the operation
of the wastewater and sludge treatment processes. The sludge composting         
fields were completed in the 3rd quarter and these have been taken into full    
operation. These projects enable the Company to continue with its               
environmentally friendly and cost effective policy of disposing zero sludge to  
landfill. The total cost of the project is over 40 mln EEK. 
-        In the 3rd quarter, the excellent wastewater treatment performance     
continued with  all outfall effluent samples at all locations compliant with    
requirements and as a consequence the environmental charges for the quarter     
attracted a 50% reduction.                                                      
-        In quarter 3 OHSAS accreditation was awarded to the company and the    
certification will be formally presented to the company on 26th October.        
On 26 September the City Council approved the tariffs for water and wastewater  
services for 2008. The tariff increase is going to be at expected level, i.e.   
11.7%. The tariff increase consists of +6.5% increase of the K-coefficient,     
+5.8% increase of CPI and -0.6% increase due to change of law.                  

--------------------------------------------------------------------------------
| INCOME STATEMENT                           |          |          |           |
--------------------------------------------------------------------------------
| (thousand EEK)                             |  9M 2007 |  9M 2006 |  12M 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales from main operating activities       |  482 623 |  440 267 |   589 176 |
--------------------------------------------------------------------------------
| Revenues from other operating activities   |   67 798 |   45 436 |   104 048 |
--------------------------------------------------------------------------------
| Net sales                                  |  550 421 |  485 703 |   693 224 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Costs of goods sold (main operating        | -157 207 | -162 114 |  -220 537 |
| activities)                                |          |          |           |
--------------------------------------------------------------------------------
| Costs of goods sold (other operating       |  -58 867 |  -41 345 |   -97 096 |
| activities)                                |          |          |           |
--------------------------------------------------------------------------------
| GROSS PROFIT                               |  334 347 |  282 244 |   375 591 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses                         |   -9 709 |   -7 111 |    -9 578 |
--------------------------------------------------------------------------------
| General administration expenses            |  -41 571 |  -36 171 |   -51 319 |
--------------------------------------------------------------------------------
| Other income/ expenses (-)                 |      908 |   24 513 |    23 229 |
--------------------------------------------------------------------------------
| OPERATING PROFIT                           |  283 975 |  263 475 |   337 923 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income / expenses (-)            |  -32 811 |  -31 643 |   -42 981 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES                        |  251 164 |  231 832 |   294 942 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax on dividends                    |  -55 285 |  -46 896 |   -46 896 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD                  |  195 879 |  184 936 |   248 046 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:                           |          |          |           |
--------------------------------------------------------------------------------
| Equity holders of A-shares                 |  195 869 |  184 926 |   248 036 |
--------------------------------------------------------------------------------
| B-share holder                             |       10 |       10 |        10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share in kroons               |     9,79 |     9,25 |     12,40 |
--------------------------------------------------------------------------------
| BALANCE SHEET                              |          |          |           |
--------------------------------------------------------------------------------
| (thousand EEK)                             | 30.09.20 | 30.09.20 | 31.12.200 |
|                                            |       07 |       06 |         6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS                                     |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS                             |          |          |           |
--------------------------------------------------------------------------------
| Cash at bank and in hand                   |  169 252 |  223 590 |   249 413 |
--------------------------------------------------------------------------------
| Customer receivables                       |   81 618 |   73 090 |    71 490 |
--------------------------------------------------------------------------------
| Accrued income and prepaid expenses        |    5 581 |    5 919 |     4 756 |
--------------------------------------------------------------------------------
| Inventories                                |    3 015 |    3 270 |     3 142 |
--------------------------------------------------------------------------------
| Assets for sale                            |    1 680 |    1 531 |     1 648 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS                       |  261 146 |  307 400 |   330 449 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS                         |          |          |           |
--------------------------------------------------------------------------------
| Tangible assets                            |    1 919 |    1 846 | 1 877 105 |
|                                            |      273 |      720 |           |
--------------------------------------------------------------------------------
| Intangible assets                          |   48 266 |   39 600 |    52 595 |
--------------------------------------------------------------------------------
| Unfinished assets - non connections        |   90 495 |  111 849 |    91 676 |
--------------------------------------------------------------------------------
| Unfinished pipelines - new connections     |  124 873 |  108 426 |   117 162 |
--------------------------------------------------------------------------------
| Prepayments for fixed assets               |    3 099 |    2 998 |     2 795 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS                   |    2 186 |    2 109 | 2 141 333 |
|                                            |      006 |      593 |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS                               |    2 447 |    2 416 | 2 471 782 |
|                                            |      152 |      993 |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES                                |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES                        |          |          |           |
--------------------------------------------------------------------------------
| Current portion of long-term borrowings    |        0 |      743 |       473 |
--------------------------------------------------------------------------------
| Trade and other payables, incl. dividends  |   65 477 |   83 212 |    85 250 |
--------------------------------------------------------------------------------
| Taxes payable                              |   14 143 |   25 395 |    30 508 |
--------------------------------------------------------------------------------
| Short-term provisions                      |    2 232 |      476 |       538 |
--------------------------------------------------------------------------------
| Deferred income                            |   46 070 |   51 808 |    36 325 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES                  |  127 922 |  161 634 |   153 094 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES                    |          |          |           |
--------------------------------------------------------------------------------
| Bank loans                                 |    1 166 |    1 165 | 1 166 098 |
|                                            |      757 |      879 |           |
--------------------------------------------------------------------------------
| Other payables                             |      114 |      100 |       100 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES              |    1 166 |    1 165 | 1 166 198 |
|                                            |      871 |      979 |           |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                          |    1 294 |    1 327 | 1 319 292 |
|                                            |      793 |      613 |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY CAPITAL                             |          |          |           |
--------------------------------------------------------------------------------
| Share capital                              |  200 001 |  200 001 |   200 001 |
--------------------------------------------------------------------------------
| Share premium                              |  387 000 |  387 000 |   387 000 |
--------------------------------------------------------------------------------
| Statutory legal reserve                    |   20 000 |   20 000 |    20 000 |
--------------------------------------------------------------------------------
| Accumulated profit                         |  349 479 |  297 443 |   297 443 |
--------------------------------------------------------------------------------
| Net profit for the period                  |  195 879 |  184 936 |   248 046 |
--------------------------------------------------------------------------------
| TOTAL EQUITY CAPITAL                       |    1 152 |    1 089 | 1 152 490 |
|                                            |      359 |      380 |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY CAPITAL       |    2 447 |    2 416 | 2 471 782 |
|                                            |      152 |      993 |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW STATEMENT                        |          |          |           |
--------------------------------------------------------------------------------
| (thousand EEK)                             |  9M 2007 |  9M 2006 |  12M 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOWS FROM OPERATING ACTIVITIES       |          |          |           |
--------------------------------------------------------------------------------
| Operating profit                           |  283 975 |  263 475 |   337 923 |
--------------------------------------------------------------------------------
| Adjustment for depreciation                |   59 284 |   59 656 |    81 047 |
--------------------------------------------------------------------------------
| Adjustment for income and expenses from    |   -8 931 |   -4 091 |    -6 952 |
| constructions                              |          |          |           |
--------------------------------------------------------------------------------
| Other financial income and expenses        |     -247 |   -1 183 |      -536 |
--------------------------------------------------------------------------------
| Profit from sale of fixed assets           |       12 |  -24 917 |   -24 917 |
--------------------------------------------------------------------------------
| Expensed fixed assets                      |        0 |      650 |     1 106 |
--------------------------------------------------------------------------------
| Capitalization of operating expenses       |  -14 406 |  -15 878 |   -20 921 |
--------------------------------------------------------------------------------
| Movement in current assets involved in     |   -5 619 |   -8 642 |    -4 142 |
| operating activities                       |          |          |           |
--------------------------------------------------------------------------------
| Movement in liabilities involved in        |  -17 999 |   -3 030 |     5 994 |
| operating activities                       |          |          |           |
--------------------------------------------------------------------------------
| Interest paid                              |  -25 849 |  -23 175 |   -48 051 |
--------------------------------------------------------------------------------
| Total cash flow from operating activities  |  270 220 |  242 865 |   320 551 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOWS FROM INVESTING ACTIVITIES       |          |          |           |
--------------------------------------------------------------------------------
| Acquisition of fixed assets (incl          | -180 561 |  -95 155 |  -192 048 |
| pipelines construction)                    |          |          |           |
--------------------------------------------------------------------------------
| Proceeds from pipelines financed by        |   74 671 |   70 748 |   112 662 |
| construction income                        |          |          |           |
--------------------------------------------------------------------------------
| Proceeds from sale of and prepayments      |       17 |   -2 778 |    -1 293 |
| received/returned(-) for fixed assets      |          |          |           |
--------------------------------------------------------------------------------
| Proceeds from sale of assets and real      |      233 |    1 107 |     1 107 |
| estate investments                         |          |          |           |
--------------------------------------------------------------------------------
| Interest received                          |    7 027 |    4 644 |     6 545 |
--------------------------------------------------------------------------------
| Total cash flow from investing activities  |  -98 613 |  -21 434 |   -73 027 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOWS FROM FINANCING ACTIVITIES       |          |          |           |
--------------------------------------------------------------------------------
| Finance lease payments                     |     -473 |   -1 012 |    -1 282 |
--------------------------------------------------------------------------------
| Dividends paid                             | -196 010 | -157 000 |  -157 000 |
--------------------------------------------------------------------------------
| Income tax on dividends                    |  -55 285 |  -46 896 |   -46 896 |
--------------------------------------------------------------------------------
| Total cash flow from financing activities  | -251 768 | -204 908 |  -205 178 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and bank accounts           |  -80 161 |   16 523 |    42 346 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND EQUIVALENTS AT THE BEGINNING OF   |  249 413 |  207 067 |   207 067 |
| THE PERIOD                                 |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND EQUIVALENTS AT THE END OF THE     |  169 252 |  223 590 |   249 413 |
| PERIOD                                     |          |          |           |
--------------------------------------------------------------------------------

Additional information:                                                         
Eteri Harring                                                                   
Head of Treasury and Investor Relations                                         
+372 6262 225                                                                   
eteri.harring@tvesi.ee

Attachments

astv 9 months eek.pdf