Consolidated Interim Report of AS Eesti Telekom for the IV Quarter and year 2007

In the fourth quarter, the sales revenues of Eesti Telekom’s broadband services segment reached 49.9 million EUR (4th quarter 2006: 49.8 million EUR). Integrated solutions and the rental of connections showed the greatest revenue increase, 44% and 69% respectively. As opposed to previous quarters, the revenues from call connections increased by 4.5% in the last quarter of the year, primarily as a result of the growth of domestic call transit and international calls initiated from the mobile network. The tempo of growth for the retail sales of Elion Group telecommunications and IT merchandise slowed in the fourth quarter to 3% as result of the general cooling of the Estonian economy. In November, Elion Enterprises realized 0.5 million EUR from real estate, which resulted in a 41% increase of other revenues.

Similarly to previous quarters, the trend in connection fees for broadband services is continuing, whereby the clients are replacing individual services with service packages. In the last quarter, the number of Elion triple package users increased by 8,750, reaching 53.5 thousand as of 31 December (31 December 2006: 25.5 thousand). By the end of the year, the total number of Elion IP and cable television clients reached 58 thousand.

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