MERGER WITH A SUBSIDIARY


The supervisory council of AS Norma (“Norma”) has decided in its meeting held
today, 20.02.2007, to give its consent to the management board of Norma for
initiation of a merger of AS Tööriistavabrik (“TRV”) with Norma. The
supervisory council decided to give its consent to the management board of
Norma for conclusion of a merger agreement with TRV and for organizing other
actions needed for finalization of the merger. Norma is the sole shareholder of
TRV. The merging of TRV into Norma is in conformity with the strategy of Norma
and it is anticipated that the planned merger brings about increased efficiency
in production and decrease in administrative expenditure within Norma group. 

The indicative and simplified timetable of the merger of Norma and TRV is as
follows: 

1.On 21.02.2007 Norma and TRV will conclude a merger agreement that will be
audited. 

2.At least one month before Norma as the sole shareholder of TRV decides on
approving the merger agreement, the shareholders of Norma will be presented the
merger agreement, auditor's report, the last three annual reports of Norma and
TRV and other data required by law and the rules of Tallinn Stock Exchange for
examination. Following the same time limit, the merger agreement will be
presented to the commercial register and a notice regarding the conclusion of
the merger agreement will be published in the official publication Ametlikud
Teadaanded. 

3.After Norma as the sole shareholder of TRV has decided on approving the
merger agreement, the merging companies will present an application to the
commercial register for the registration of the merger. After the registration
of the merger, a notice to the merging companies' creditors will be published
in the official publication Ametlikud Teadaanded. 

In case of finalization of the merger, TRV will be merged into Norma and TRV as
a separate company will be deemed dissolved. 


Additional information: 

Peep Siimon
Chairman of the management board
Phone: + 372 6 500 444
GlobeNewswire