Tallinna Kaubamaja            NEWS RELEASE                      05/13/2004



EXPANSION PLAN OF TARTU KAUBAMAJA



The construction cost of the new building of Tartu Kaubamaja (Tartu

Department Store), a property owned by the real estate company Tallinna

Kaubamaja Kinnisvara, is 250 million kroons (16 million euros). The total

cost of the project is 300 million kroons (19,2 million euros), containing

also cost of land, designing costs and other investments related with the

project. The closed net area of the building is 28 500 sq m, including

rentable business area of 16 800 sq m. There will be over 200 parking

places in the building. The construction will be completed in August 2005.



Half of the rentable business area will be operated by Tartu Kaubamaja. The

planned sales area of Tartu Kaubamaja will be 6700 sq m, i.e. three-fold in

comparison to the existing sales area of today.



The size of the retail investment is around 50 million kroons (3.2 million

euros), including furniture and fixtures, IT and security systems.



The planned number of daily customers will increase 1.5 times up to 15 000

people.



The projected full year gross sales is double the sales of today, amounting

to 370 million kroons (23.7 million euros).



Similarly to Tallinna Kaubamaja (Tallinn Department Store), the proportion

of internationally well-known brands will increase after the expansion.

Example may be given by menswear and womensware brands S.Oliver and Mexx,

womensware brand Taifun and mensware brands McGregor and Stones. As a major

change, the portfolio of exclusive cosmetics will also be widened by Dior,

Clarins, Decleor and Biotherm.





Katrin Mühls

CFO

+372 6 673 200