Tallinna Kaubamaja            NEWS RELEASE                      02/05/2003



LOAN AGREEMENT



On January 29 Tallinna Kaubamaja Kinnisvara Ltd., a full subsidiary of

Tallinna Kaubamaja Ltd., concluded a long-term loan agreement with Eesti

Ühispank (Estonian Union Bank) in the amount of 108 million EEK (EUR 6,9

million) with the term of 8 years. Out of this amount 30 million EEK (EUR 1,9

million) was additional financing and was used to refinance the construction

of the building of Torupilli Selver partly funded by working capital of the

Group until then. 78 million EEK (EUR 5 million) was used to refinance the

existing long-term loan in Hansapank.



The collateral of the loan is first mortgage on property at Gonsiori 2,

Tallinn.





Katrin Mühls

CFO

+372 6 673 200