AS Kalev           Stock Exchange Release          10.10.2005



Subsidiary’s product meets requirements



The article of 3 October 2005 in Eesti Päevaleht, “Consumers

ripped off by milk producers,” unjustifiably shed bad light

on AS Kalev’s important subsidiary AS Kalev Paide Tootmine.



Having read the article, a supervisory official with the

Veterinary Centre of Järva County took a follow-up sample of

a batch of Taluvõi (“farm-style butter”) from AS Kalev Paide

Tootmine, and sent it to the Veterinary and Food Laboratory

(VAFL) for analysis. The supervisory official also conducted

a thorough on-site inspection of the butter-making process

at AS Kalev Paide Tootmine.



The results announced by VAFL today clearly show that AS

Kalev Paide Tootmine’s Taluvõi contains the prescribed

amount of milk fat, with no traces of vegetable fat. The

production process inspection report confirms the compliance

of AS Kalev Paide Tootmine’s production operations with the

established procedures, with no indication of deviations or

irregularities.



AS Kalev Paide Tootmine first learned of the alleged

deviation of the ingredients of its Taluvõi through the

above Eesti Päevaleht article. VAFL failed to inform the

manufacturer of the results of the analysis. On 3 October

2005, the manufacturer therefore filed a request for

information with VAFL, demanding publication of the Taluvõi

analysis results as well as disclosure of the identity of

the person who took the allegedly anonymous product sample

(i.e. product without its package) to the laboratory.



In its reply dated 6 October 2005, it emerged that VAFL

would not release results to the manufacturer; they would

only be forwarded to the person who had ordered the work.

VAFL also refused to disclose any information on the person

who took the samples to the laboratory, as the information

is considered confidential. VAFL says the quality system

currently used by VAFL serves the purpose of protecting the

interests of the laboratory and the customer.





Ruth Roht

PR manager

+372 6 077 858