Tallinna Kaubamaja            FINANCIAL RESULTS                 05/03/2002



FINANCIAL RESULTS, Q1 2002



COMMENTARY TO FINANCIAL RESULTS, Q1 2002



The consolidated unaudited net sales for the 1st Quarter 2002 were 338,2

million kroons (21,6 million euros). The net sales of the comparable period of

last year were 298,6 million kroons (19 million euros). The average sales area

in the 1st Quarter was 26 631 sq m and within the same period last year 25 535

sq m. The increase in net sales of the Group in the 1st quarter of 2002 was

13,3 per cent and the increase in sales area was 4,3 per cent.





The consolidated net profit of the Group of the 1st Quarter was 8,9 million

kroons (0,6 million euros) that is an increase of 14,8 million kroons (0,95

million euros) in comparison to the same period last year when the loss of the

Group was 5,9 million kroons (0,4 million euros).



In the 1st Quarter the efficiency of the Group considerably improved: the net

sales per employee increased by 22 per cent in comparison to the same period

last year and the sales area per employee increased by 12 per cent. At the

same time the average number of employees decreased by 7 per cent. The

inventory turnover increased by 17 per cent in the 1st Quarter of 2002.



In the 1st Quarter The Group had extraordinary income of 1,4 million kroons

(0,09 million euros) in connection withy the sales of fixed assets (real

estate in Veerenni Street in Tallinn and the building of the Elektra shop in

Tartu).



Great attention has been paid to further improvement of assortment with the

focus on completeness of a collection and good balance of price and quality.

Better conditions have been negotiated with several suppliers that reflect in

the prices of goods sold in the store. Several new brands have been added to

the assortment, e.g. womens wear Taifun, womens shoes Luciano Barachini, mens

casual wear Dockers and exclusive cosmetics Shiseido, and the visual

merchandising of goods has been considerably improved. The number of customers

entering the Tallinn Department Store was 4 per cent higher than in the same

period last year.



The average purchase of customers of A-Selver Ltd. has increased by 2 per cent

and the number of purchases in comparable sales area has increased by 3,7 per

cent. The total number of purchases including the new Tondi Selver increased

by 18,2 per cent. The success factors thriving the sales were better focus on

the stability of the assortment, smooth functioning of the supply chain and

better visual merchandising of goods. Due to the expansion of the Selver chain

the amount of supplies has increased that in its turn has enabled to negotiate

more favourable comditions with the suppliers.



This year at least four new supermarkets will be added to the Selver chain,

three of them will be located in cities outside Tallinn. The total additional

sales area will be ca 5200 sq m. Best efforts are made in order to open the

fifth supermarket named Torupilli Selver in the real estate owned by Tallinna



Kaubamaja Kinnisvara Ltd (Tallinna Kaubamaja Real Estate) in Vesivärava Street

in December this year with the sales area of ca 1700 sq m. If this aim is

realised, the number of the existing Selver stores will be doubled.





Katrin Mühls

CFO

6 673 200





CONSOLIDATED BALANCE SHEET AS OF 31.03.2002



in thousands of EEK/EUR

                                      31.03.2002     31.12.2001

                                       The Group      The Group

ASSETS                                EEK     EUR    EEK     EUR

Current assets

Cash and bank                       24 263  1 551  76 199  4 870

Trade receivables                    2 128    136   5 100    326

Other receivables                    2 524    161   3 063    196

Accrued income                          88      6      83      5

Prepaid expenses                     6 078    388   2 496    160

Inventories                        184 934 11 819 170 693 10 909

Total current assets               220 015 14 062 257 633 16 466

Non-current assets

Long-term financial assets

Shares of assoc. companies           3 029    194   2 844    182

Long-t receivables from ass. Co.s   12 028    769  12 028    769

Other long-term receivables              0      0       0      0

Total long-term fin. assets         15 057    962  14 872    951

Tangible fixed assets

Land and buildings                 360 138 23 017 360 567 23 044

Plant and equipment                 71 104  4 544  70 469  4 504

Other equipment and fixtures       141 505  9 044 141 514  9 044

Accumulated depreciation          -160 614-10 265-151 123 -9 659

Construction in progress            20 200  1 291   4 062    260

Prep. to suppl. for tang. FA         3 863    247   2 459    157

Total tangible fixed assets        436 196 27 878 427 949 27 351

Intangible assets                   -1 631   -104  -1 713   -110

Total non-current assets           449 622 28 736 441 108 28 192

TOTAL ASSETS                       669 637 42 798 698 741 44 658



LIABILITIES AND OWNERS’ EQUITY

Debt liabilities                   104 036  6 649 131 053  8 376

Cust. advances for goods and serv.                  3 161    202

Supplier payables                  105 540  6 745 108 552  6 938

Other payables                      19 263  1 231  24 031  1 536

Total current liabilities          228 838 14 625 266 796 17 051

Long-term debt liabilities          33 032  2 111  33 032  2 111

Total non-current liabilities       33 032  2 111  33 032  2 111

Total liabilities                  261 870 16 737 299 828 19 162

Owners’ equity

Share capital                       67 882  4 338  67 882  4 338

Statutory legal reserve              7 269    465   7 269    465

Reval. reserve of fixed assets     159 846 10 216 160 964 10 287

Retained earnings                  163 916 10 476 127 040  8 119

Net profit for the financial year    8 854    566  35 758  2 285

Total owners’ equity               407 767 26 061 398 913 25 495

TOTAL LIAB. AND OWNERS’ EQUITY     669 637 42 798 698 741 44 658





CONSOLIDATED INCOME STATEMENT, Q1 2002



in thousands of EEK/EUR

                                         2 002   2 002  2 001   2 001

                                         1st Q   1st Q  1st Q   1st Q

                                          EEK     EUR    EEK     EUR

Operating income

Net sales                                338 185 21 614 298 532  19 080

Other operating income                     8 272    529   4 110     263

Total operating income                   346 457 22 143 302 642  19 342

Operating expenses

Cost of goods sold                      -253 850-16 224-226 034 -14 446

Other operating expenses                 -36 705 -2 346 -35 778  -2 287

Personnel expenses                       -32 573 -2 082 -30 082  -1 923

Depreciation                             -12 475   -797 -12 576    -804

Deprec. and value adj. of FA             -12 558   -803 -12 541    -801

Depreciation of  goodwill/badwill             82      5     -35      -2

Other expenses                              -687    -44    -621     -40

Total operating expenses                -336 290-21 493-305 090 -19 499

Operating profit                          10 167    650  -2 448    -156

Financial income                             788     50     149      10

Fin. income on shares in subsid.             184     12

Interest income                              604     39     149      10

Financial expenses                        -2 101   -134  -3 662    -234

Fin. expense on shares in subsid.              0      0     -73      -5

Interest expenses                         -2 090   -134  -3 576    -229

Other financial expenses                     -11     -1     -12      -1

Profit bef. minority int. and taxes        8 854    566  -5 961    -381

Minority interest                              0      0     109       7

Net profit                                 8 854    566  -5 852    -374





Katrin Mühls

CFO

6 673 200