PRO KAPITAL

ANNOUNCEMENT



ABOUT EXPANSION OF KRISTIINE KAUBANDUSKESKUS



After review of shopping center's expansion plans and discussion on further 

development of the project, the Supervisory Board of AS Pro Kapital Eesti 

fully owned subsidiary AS Kristiine Kaubanduskeskus decided on 11.10.2000 to 

change its initial plan to rent out the new premises to an operator company, 

which would open a multiplex cinema on the new premises.



Such changes were made due to growing demand for rent premises in Kristiine 

Kaubanduskeskus. According to the amended plans, Kristiine Kaubanduskeskus 

will gain approximately 9,000 m2 of premises after expansion of the building; 

all of it will be rented out for shopping and service premises. The shopping 

center's parking lot will also be expanded, and will have parking space for 

800 cars. In order to realize the amended expansion plans, the company will 

make investments in value of EEK 130 million, or less than initially 

projected. The investments will be funded from the company's equity and bank 

loan.



The shopping center will be expanded to the territory owned by AS Kristiine 

Kaubanduskeskus. The construction works will be launched this year; the II 

stage construction works are scheduled to be completed in August 2001.



In order to realize the multiplex cinema project, the company will continue 

talks with an operator company. According to the initial plans, the cinema 

will be built on the empty part of the estate owned by Kristiine 

Kaubanduskeskus.





Additional information:

Allan Remmelkoor, AS Kristiine Kaubanduskeskus

CEO, tel. +372 665 0341





Ilona Saari

Board member of PK Group

+372 614 4924