Harju Elekter to establish subsidary

For the purpose of streamlining the management structure of the group, specifying the rights and liability as well as better organisation of accounting and analysis, at its meeting of 3 March 2005, the supervisory board of the company decided to establish a 100% subsidiary of Harju Elekter on the basis of the Electrical Equipment Plant of Harju Elekter. The business name of the company will be AS Harju Elekter Elektrotehnika and it will commence independent economic activities from 1 April. The financial year of the company will last from 1 January to 31 December. The share capital of AS Harju Elekter Elektrotehnika will be MEEK 16, divided into 1.6 million shares with a nominal value of EEK 10. Shares will be paid for by monetary contributions into the bank account of the company to be established. The supervisory board of the company will consist of four members - chairman Endel Palla and members Andres Allikmäe, Karin Padjus and Lembit Libe. The management board of the company has one member. The former director of the Electrical Equipment Plant Ülo Merisalu was appointed as the manager; he will be removed from the management board of the parent company of Harju Elekter in relation to his transfer to the position of the manager of AS Harju Elekter Elektrotehnika since 1 April 2005. All the present employees of the Electrical Equipment Plant will be transferred to the established subsidiary under the currently valid employment contracts. At the moment, the Electrical Equipment Plant employs 149 people. AS Harju Elekter Elektrotehnika will continue in its present area of activity which is design, manufacturing and marketing of electrical equipment for energy distribution, industrial and construction sector. At the same time, the company will remain liable for the manufacturing of electrical equipment and product development in the entire group, including in Finland and Lithuania. The parent company of AS Harju Elekter will focus on the further strategic development of the group, provision of management, financial and support services to subsidiary and affiliated undertakings, property management and commerce.