Kalev                            ANNOUNCEMENT                           04.04.2005



AS Kalev's bonds many times oversubscribed



AS Kalev issued, by way of a placement, 32  million  kroons  worth  of  discounted

bonds, exceeding the initially estimated volume by 17 million kroons.



According to AS Kalev's Financial Director  Tarmo  Maasikamäe,  there  was  active

interest  in  the  issue  -  bonds  were   many   times   oversubscribed.   "Major

oversubscription was not unexpected since AS Kalev has conducted  no  bond  issues

in recent years, and offered investors a relatively good  return  on  investment,"

Maasikamäe added.



Funds yielded by the issue will be used for financing the current assets of  Kalev

Group, enabling the company to extend payment  deadlines  established  for  export

customers and thus enhance profitability.



The term of maturity of the bonds has been set to 12 December 2003, value date  to

31 March 2005 and the rate of return to an annual  6%.  The  sales  price  of  the

bonds is 9,590.79 kroons and the redemption price is 10,000  kroons.  The  primary

distribution of the debt instruments was carried out via direct  sale.  The  bonds

have not been secured and are pari passu with other unsecured  and  unsubordinated

debt instruments.



The issue was conducted by Sampo Bank.





Ruth Roht

PR manager

+372 6 077 858