KALEV

ANNOUNCEMENT



SALE OF HOLDING IN SUBSIDIARY



In accordance with AS Kalev development strategies for year 2000, 

the company sold its holding in subsidiary Kim Amsterdam Team Ltd. 

The agreement was undersigned on 21.12.2000, and it became effective 

after the seller received the payment for shares on 27.12.2000. 

Kalev earned EEK 1.3 Mio profit from the transaction.



The impact of Kim Amsterdam Team Ltd. on Kalev’s financial results 

is insignificant. The subsidiary’s balance sheet size accounted for 

less than 5% of AS Kalev audited results.



AS Kalev has already sold its holdings in Russian and Ukrainian 

subsidiaries Tsharodeika and Ukrainian Logistical Center. In year 

2000 Kalev focused on stable domestic market and exported mainly to 

the Baltic markets. AS Kalev is currently the leader on Estonian 

sweets market with 45% market share.



In year 1999 AS Kalev posted EEK 43 Mio net loss. However, after 

transition to management-by-objectives the company has shown profit 

throughout this year. In 9 months the company earned EEK 9.3 Mio 

profit and consolidated turnover was EEK 232.5 Mio.



Sale of shares in Kim Amsterdam Team Ltd. cannot be treated as 

transaction with related parties.





Rutt Panga

Assistant to Supervisory Board

+372 628 3853