Tallinna Kaubamaja            NEWS RELEASE                      12/24/2002



ISSUE OF BONDS



Tallinna Kaubamaja AS issued bonds in the amount of 35 million EEK (EUR 2,2

million) with the term of two years and maturity date on December 20th 2004.

The face value of the bonds is 10 000 EEK (EUR 640). The bonds were issued in

two stages. The interest rate was formed on the basis of offers presented in

subscription forms.



Stage 1 of the issue amounted to 15 million EEK (EUR 0,96 million) and the

value date was on December 13th. There were 15 subscribers and offers

amounted to 71,7 million EEK (EUR 4,6 million). The yield was 4,85 per cent

p.a.



Stage 2 of the issue amounted to 20 million EEK (EUR 1,3 million) and the

value date was on December 20th. There were 12 subscribers and offers

amounted to 41 million EEK (EUR 2,6 million). The yield was 4,8 per cent p.a.



The arranger of the issue was Eesti Ühispank (Estonian Union Bank).



With the funds Tallinna Kaubamaja AS refinanced its bonds in the amount of

31,5 million EEK (EUR 2 million) that were due on December 20th this year.





Katrin Mühls

CFO

6 673 200