KALEV                              ANNOUNCEMENT                       18.03.2005



Good Christmas sales grow Kalev's market share



According to the latest data on Estonian retail from AC Nielsen, AS Kalev's  share

of market volume in chocolate and sugar confectionery products grew  in  December-

January, reaching 46%.



According to AS Kalev marketing director Alar Pink, Kalev's market share  grew  as

compared to October-November 2004 by two percentage points-thanks above all  to  a

successful Christmas product sales.  The  results  of  the  market  study  do  not

reflect Sonja, Kalev's most  inexpensive  series  of  sweets,  which  the  company

launched in the middle of February.



On the basis of TNS Emor Christmas product study findings, it emerged that 85%  of

Estonian families bought Christmas treats at the end of 2004. Chocolate bars  were

the most purchased items - bought by a predominant majority or 76% of buyers.



"The study showed that consumers consider good taste properties,  domestic  origin

and attractive packaging the most important in making their decisions.  These  are

the reasons the predominant share of buyers took Kalev home for  Christmas,"  said

Alar Pink.



Based on domestic capital, AS Kalev is Estonia's leading  confectionery  industry,

manufacturing an average of 7,500 tons of sweets a year.





Ruth Roht

PR manager

+372 6077 858