Kalev                         ANNOUNCEMENT                         28.03.2005



AS Kalev to conduct a bond issue



AS Kalev will issue 15 million kroons worth of discounted bonds by way of a

placement.



The company will issue 1,500 commercial papers at a sales price of 9,590.79

kroons, interest rate of 6% and a term of maturity of 12.12.2005. The

subscription period will end on 29.03.2005, and the value date has been set to

31.03.2005.



The minimum amount of a subscription certificate is 630,000 kroons per investor.

In case of oversubscription, the bonds to be issued to investors will be divided

as proportionally to the amounts specified in the subscription certificates as

possible, but not less than 630,000 kroons per investor. In case of

undersubscription, the volume of the issue will be reduced to the volume

specified in the subscription certificate, or the bond issue cancelled.



The bonds have not been secured and are pari passu with other unsecured and

unsubordinated debt instruments.



The nominal value of the bond is 10,000 kroons. The issue will be conducted by

Sampo Bank.





Ruth Roht

PR manager

+372 6 077 858