Tallinna Kaubamaja            NEWS RELEASE                      06/26/2003



INVESTMENT INTO DEVELOPMENT PROJECT



On 26th of June Tallinna Kaubamaja AS concluded a long- term lease agreement

with Rocca al Mare Shopping Centre. In the end of August Tallinna Kaubamaja

will open a fashion store on the second floor of the shopping centre with a

sales area of 800 sq m. The size of the related investment is 5 million EEK

(EUR 0,32 million).



The concept of the fashion store is a part of the long-term strategy of the

Group to increase and secure its market share in Estonian retail sector. The

large-scale project of the Group in the super and hypermarket sector - the

Selver chain - has been a success, the Selver chain is among the biggest in

Estonia.



With the fashion store concept Tallinna Kaubamaja AS intends to come closer

to customers who know and value Tallinna Kaubamaja and visit shopping centres

with high volume of entrants that are attractive due to good parking

facilities, easy access from main roads and high concentration of goods and

services offered in such shopping centres.



The fashion store of Tallinna Kaubamaja offers medium-priced fashion and

personal items to the whole family including such brands as S. Oliver, Tom

Tailor, PepperCorn and Solid. The brand portfolio has been widened by new

brands Mexx, PTA and B-Young that will also be offered in the renewed

Tallinna Kaubamaja (Tallinn Department Store) to be opened in early spring of

2004. In addition to fashion clothes for women, men and children the store

also offers cosmetics, perfumes, underwear and accessories. All the loyal

customer concessions will be valid in the fashion store.





Katrin Mühls

CFO

6 673 200