MKO: DIVISION OF AS MERKO EHITUS: COMMERCIAL REGISTRY ENTRY AND FURTHER STEPS


Merko Ehitus            	        Company Announcement                           
01.08.2008                                                                     

DIVISION OF AS MERKO EHITUS: COMMERCIAL REGISTRY ENTRY                          

Today, the Registration Department of the Harju County Court registered the     
division of AS Merko Ehitus. According to the division plan published in the    
stock exchange release on 30.04.2008, the following changes took effect today.  

The business name of the currently listed company has been changed to AS        
Järvevana. The new company has been named AS Merko Ehitus. The business of the  
former AS Merko Ehitus, i.e. all assets, liabilities and contracts, including   
equity interest in other companies, as well as the business name of “Merko      
Ehitus” now belong to the new AS Merko Ehitus, except for the liquid assets to  
the amount of the maximum possible outcome of the criminal proceedings in the   
so-called land swap case and contingent liabilities related to the proceedings, 
which belong to AS Järvevana as of today's entry.
                              
AS Järvevana and AS Merko Ehitus concluded on 31.07.08 a cooperation agreement, 
specifying the terms and conditions for the exercise of the options and the     
terms of the loan agreed on in Annex 3 of the Division Plan as well as other    
issues relating to the division and the principles for the administration and   
development of the property named in the same document. The cooperation         
agreement is available on the following website:                                
http://www.merko.ee/investor/news  
                                             
The management of the company has carried out all required preparatory          
procedures to ensure that trading with the new shares can start on the main list
of the Tallinn Stock Exchange on 11.08.2008. In the course of the preparatory   
procedures, the prospectus of the new AS Merko Ehitus will be published next    
week, subject to the approval of the Estonian Financial Supervision Authority.  

Alar Lagus                                                                      
Member of the Management Board                                                  
6 805 105                                                                       
merko@merko.ee
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