Tallinna Kaubamaja               FINANCIAL RESULTS                   05.05.2005



FINANCIAL RESULTS FOR Q1 2005



The consolidated unaudited net sales of Tallinna Kaubamaja Group for the 1st

Quarter 2005 were 541 million kroons (34.5 million euros). The net sales of the

comparable period of last year were 433 million kroons (27.7 million euros). The

increases in net sales were 25 per cent.



The increases in sales of the Tallinna Kaubamaja in the 1st quarter of 2005 were

27 per cent. The main increases of sales were regarding extension of Kaubamaja,

by the extension the sales area was increased by 1.5 times.



The increases in sales of the A-Selver in the 1st quarter of 2005 were 25 per

cent and the increase in sales area was 11 per cent. Good results were mostly

influenced by additional customers and successful expansion: in June 2004 Saare

Selver and in March 2005 Vilja Selver were opened. In the 1st quarter of 2005 the

greatest increases of net sales per square meter in Selver Chain were: Merimetsa

Selver in Tallinn 33 per cent, Krooni Selver in Rakvere 33 per cent and Männimäe

Selver in Viljandi 18 per cent. This shows that Selver is increasing its

notoriety outside Tallinn.



The increase in sales in Tartu Kaubamaja were 8 per cent. The main sources were

additional brands, which were brought to Tartu, regarding new Tartu Kaubamaja,

which will be opened in autumn 2005.



The consolidated net profit of the Group for the 1st Quarter of 2005 as 8.6

million kroons (550 thousand euros). The increase is 19 per cent over the

comparable period when the net profit was 7.2 million kroons (461 thousand

euros).





TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet



                         in thousands of EEK/EUR

                         31.03.2005         31.03.2004

                         The Group          The Group

 ASSETS                     EEK       EUR      EEK       EUR

Current assets

Cash and bank                23 896    1 527    14 712      940

Trade receivables             9 274      593     5 164      330

Other receivables             5 413      346     6 322      404

Accrued income                    0        0         0        0

Prepaid expenses             13 240      846     6 410      410

Inventories                 247 039   15 789   185 858   11 879

Total current assets        298 862   19 101   218 467   13 963

Non-current assets

L-T financial assets

Shares of assoc. co.          7 120      455     5 636      360

Other L-T receivables fro    12 328      788    12 028      769

Total L-T fin. assets        19 448    1 243    17 664    1 129

Tangible fixed assets       729 872   46 647   555 093   35 477

Intangible assets                                 -821      -52

Total non-current assets    749 320   47 890   571 936   36 553

TOTAL ASSETS              1 048 182   66 991   790 403   50 516



LIABILITIES AND

OWNERS’ EQUITY

Debt liabilities             42 421    2 711    46 800    2 991

Cust. advances for

goods and serv.               4 301      275     3 416      218

Supplier payables           205 706   13 147   153 880    9 835

Other payables               38 095    2 435    24 727    1 580

Total current liab.         290 524   18 568   228 823   14 624

L-T debt liabilities        102 416    6 546   119 029    7 607

Total non-current liab.     102 416    6 546   119 029    7 607

Total liabilities           392 940   25 113   347 852   22 232

Owners’ equity

Share capital                67 882    4 338    67 882    4 338

Statutory legal reserve       7 269      465     7 269      465

Reval. reserve of FA        258 688   16 533   150 994    9 650

Retained earnings           312 802   19 992   209 185   13 369

Net profit for the per.       8 602      550     7 219      461

Total owners’ equity        655 243   41 878   442 550   28 284

TOTAL LIABILITIES

AND OWNERS’ EQUITY        1 048 182   66 991   790 403   50 516





TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement



                         in thousands of EEK/EUR

                          Q1 2005           Q1 2004

                         The Group          The Group

                            EEK       EUR      EEK       EUR

Operating income

Net sales                   540 581   34 549   433 054   27 677

Other op. income             12 076      772    10 478      670

Total op. income            552 657   35 321   443 531   28 347

Operating expenses

Cost of goods sold         -410 606  -26 243  -333 141  -21 292

Other op. expenses          -70 356   -4 497   -49 208   -3 145

Personnel expenses          -45 368   -2 900   -38 767   -2 478

Depreciation

Depreciation of FA          -15 317     -979   -12 800     -818

Depr. of  goodwill                0        0       117        7

Other expenses               -1 513      -97      -956      -61

Total op. expenses         -543 160  -34 714  -434 755  -27 786

Operating profit              9 497      607     8 777      561

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                 350       22       209       13

Interest income/exp.         -1 196      -76    -1 576     -101

Other fin. inc./expenses        -49       -3      -189      -12

Net profit                    8 602      550     7 219      461





Raul Puusepp

Chairman of the Board

phone: +372 731 5000