Klementi                      NEWS RELEASE                      06/02/2003



DOWNSIZING DURING RESTRUCTURING



AS Klementi continues to restructure, commenced according 

to the plan last autumn, in order to increase the 

efficiency of the company and achieve compliance with the 

competition conditions on the market.



When the company was taken over by the new majority 

shareholder Alta Capital, the number of the employees in 

the group amounted to 632. During the past nine months, 

that figure has dropped by 9%. By the end of the third 

quarter of 2003, the number of the people employed by the 

group is expected to be 506, which will be by 20% less 

than a year ago.



The downsizing affects all the profit centres and is aimed, 

above all, at reducing the overhead costs of the company.



During the year, the management of the company hopes to save EEK 9-11m.



During the restructuring, Klementi has managed to decrease 

the share of simple subcontracting and at the same time to 

significantly increase the turnover of its own trademarks. 

Since the 2003 autumn season, women’s clothes have been

sold under the trademarks of Klementi on the following 

markets: Estonia, Sweden, Finland, Latvia, Russia and Lithuania.



In May 2003, the company opened successfully two shops operating 

under the trademark of Klementi and employing the new concept in 

Tallinn and Riga. The shops are restructured gradually and the 

process is planned to be completed by the end of 2004.



"During the restructuring, we have fixed the strategic aims of 

Klementi, that is, to focus on the two main trademarks PTA and 

Klementi and to expand our markets in the Nordic countries and Russia. 

At the same time, it is important to balance the structure of 

expenditure and the revenue base of the company fast and vigorously,"

said the manager of AS Klementi Toomas Leis.



AS Klementi develops the following trademarks of women’s clothes: 

PTA, Klementi, MasterCoat, Piretta and Mallimari. The consolidated 

net turnover of AS Klementi was EEK 133.3m in 2002. AS Klementi 

has its own shop chain currently comprising 15 shops in the Baltic 

countries; in addition, over 200 shops in Scandinavia sell women’s 

clothes under the trademarks of AS Klementi.





Toomas Leis

CEO

+372 6 710 700