Tallinna Kaubamaja            NEWS RELEASE                      01/27/2004



PRESS CONFERENCE OF VIRU CENTER



In connection with the press conference of Viru Centre where Tallinna

Kaubamaja AS is participating, taking place today, we issue the following

information:



The unaudited net sales of AS Tallinna Kaubamaja (parent company) for 12

months of 2003 was 579,4 million kroons (37 million euros), showing a

decrease of 1 per cent over the same period last year, when the respective

figure was 584,6 million kroons (37,4 million euros). Considering an

estimated average increase of 20 per cent of the sales area in Tallinn in

2003, the preservation of the sales volume on practically the same level as

a year before is a good result by the estimation of the Management.

Especially high credit is given to the high proportion of loyal customer

purchases, amounting to 60 per cent of the total sales volume that is an

increase of 8 per cent over the respective indicator last year.



The consolidated unaudited net sales for the year 2003 of the Tallinna

Kaubamaja Group was 1,76 billion kroons (112,5 million euros) that is an

increase of 15 per cent over last year when the net sales of the Group was

1,53 billion kroons (97,9 million euros).



The unaudited net profit of the parent company (and the Group) for 2003 was

67,3 million kroons (4,3 million euros), including net financial income on

shares in subsidiaries and associates of 39,7 million kroons (2,5 million

euros). The net profit of the Group for 2002 was 45 million kroons (2,9

million euros), including net financial income on shares in subsidiaries and

associates of 23,4 million kroons (1,5 million euros). The net profit

increased by 1,5 times.



Excluding net financial income on shares in subsidiaries and associates, the

profit of the parent company was 27,6 million kroons (1,8 million euros)

that is 1,3 times higher than in 2002, when the figure was 21,6 million

kroons (1,4 million euros). The source for increase in profit of the parent

company was merchandising better meeting the expectations of loyal

customers, launch of new brands and more precise planning of purchasing

volumes.



Net financial income on shares in subsidiaries and associates increased by

16,3 million kroons (1 million euros), i.e. by 1,7 times. The source for the

increase was bigger lease volume of the real estate company Tallinna

Kaubamaja Kinnisvara, considerably improved financial result of A-Selver and

more successful retailing in Tartu Department Store.



The total investment of the extension of Tallinna Kaubamaja, to be opened

simultaneously with the opening of Viru Centre, is 95 million kroons (6

million euros), of which 70 million kroons (4,5 million euros) is invested

by Tallinna Kaubamaja AS and 25 million kroons (1,6 million euros) by the

real estate company Tallinna Kaubamaja Kinnisvara.





Katrin Mühls

CFO

+372 6 673 200