Tallinna Kaubamaja            NEWS RELEASE                      07/29/2004



2ND STAGE OF TARTU DEPT STORE BUILDING



Tallinna Kaubamaja Kinnisvara AS, daughter company of Tallinna Kaubamaja AS,

concluded a construction agreement on 27th of July with the company Skanska

EMV AS to construct the second stage of the new building of Tartu Kaubamaja

(Tartu Department Store) at Riia 1, Vanemuise 2 and Küüni 14, Tartu (so-

called Hansa Quarter). The construction cost of the second stage is 176.3

million kroons (11.3 million euros).



The closed net area of the building is 28 500 sq m and sales area 14 400 sq

m. There will be over 220 parking places in the building.



The biggest operator will be Tartu Kaubamaja (sales area 6900 sq m). The size

of other leasable area is 7500 sq m.



It is planned to find tenants who will support and supplement the product

selection of Tartu Kaubamaja. The negotiations with potential lessees over

the conditions of lease have been started.



The construction will be completed by the autumn of 2005.





Katrin Mühls

CFO and Sales Director

+372 6 673 200