Kalev                     NEWS RELEASE               12.11.2004



Explanatory note to the Annual Report 2003/2004



The consolidated and audited net sales of Kalev Ltd for the financial year

2003/2004 amounted to 624.2 million kroons - an increase of 10%, compared to the

consolidated net sales of 564.9 million kroons reported in the previously

published 12-month interim report.



Sales of other foodstuffs, which had no effect on the profit reported in  the  12-

month interim report, was recorded  neither  under  income  nor  expenses  in  the

interim income statement. In the course of the auditing of the annual  report  for

the financial year 2003/2004, the  management  of  the  company  and  the  auditor

reached an agreement on recording the above transactions under sales  revenue  and

sales expenses. In connection with the above entries,  the  company's  net  sales,

other operating expenses and cost of goods sold were changed.





Ruth Roht

PR manager



+372 6 077 858