Tallinna Kaubamaja            FINANCIAL RESULTS                 03/01/2002



CONSOLIDATED UNAUDITED RESULTS FOR 2001



The Group



The consolidated net sales for the year 2001 were 1,45 billion kroons; 92,7

million euros (including parent company 577 million kroons; 36,9 million

euros). The increase in net sales was 22% during the year, which is 2% higher

than the increase in Estonian retail market. The market share of Tallinna

Kaubamaja Group in the retail market increased by 2% up to 6,77% by the end of

2001.



The  audited net profit of Tallinna Kaubamaja Group was 35,8 million  Estonian

kroons; 2,29 million euros.



The  total assets of Tallinna Kaubamaja Group were 698,7 million kroons; 44,66

million  euros  as at 31 December 2001, showing the increase of  14,9  million

kroons;  0,95 million euros. During the year 2001 the investments to  tangible

fixed  assets  were 67,8 million kroons; 4,33 million euros   (including  land

31,1  million  kroons; 1,99 million euros, investments related to  opening  of

Tondi  Selver  19,1  million kroons; 1,22 million euros and  investments  into

information  technology  9,8  million kroons;  0,63  million  euros).  Current

liabilities  have been increased by 62,7 million kroons; 4 million  euros  and

non-current  liabilities  have been decreased by  60,9  million  kroons;  3,89

million euros, amounting to 266,8 and 33 million kroons; 17,05 and 2,1 million

euros respectively. The owners’ equity was 398,9 million kroons; 25,49 million

euros as at 31 December 2001.



The average number of employees was 1 346 in 2001.



In  order  to improve the efficiency of the client service the flexibility  of

employee  working schedules was improved. Improving the quality of service  as

one  of  the competitive advantages has remained a continuous priority of  the

Tallinna Kaubamaja Group.



The number of loyal customers has increased by 58% during 2001, reaching 69

000 private persons by the end of the year. The strategy of retaining

customers has proved to be successful and therefore the Group plans to

concentrate on the maximization of profitability of clients through the client

satisfaction. Different special offers have been made to best customers.

Starting from 2002 the loyal customer brochure will be replaced by general

interest magazine Hooaeg (the Season).



Andres Järving who was previously the member of the supervisory board replaced

the previous chairman of supervisory board Jüri Käo starting 21 September

2001. Jüri Käo continues as a member of the supervisory board.



Tallinna Kaubamaja and Tartu Kaubamaja



Major changes have taken place in Tallinna Kaubamaja and Tartu Kaubamaja in

2001. Since the autumn season Tallinna and Tartu Kaubamaja have partially

redirected to cheaper supply chains and better conditions have been negotiated

with existing suppliers because of the tightened competitive situation and

customers’different purchasing behavior from management initial prognoses.

Above described improvements allow the same quality goods to be offered at

lower prices. As a result of these measures the assortment of goods has been

changed to meet more precisely the expectations of target clients.



The shop in shop principle in cooperation with AS Baltika has been introduced

from April 2001 in order to improve the stock management and minimize the

risks related to inventories. According to that principle AS Baltika is

responsible for the completion of collections offered to customers and bears

all risks related to stock.



AS Tallinna Kaubamaja acquired 216 000 shares of Tartu Kaubamaja in April 2001

and became 100% shareholder of AS Tartu Kaubamaja.



According to mutual cooperation agreement Tallinna Kaubamaja is sponsoring

Tallinn Zoo and Estonian Nukuteater.



Main plans of Tallinna Kaubamaja in 2002 are related to the possible expansion

to the shopping center at Viru Väljak. The major objective is also the

continuous improvement of stock management. Management is looking for new

opportunities in stock logistics area.



The main priority of Tartu Kaubamaja is to maintain its’ leading position in

Tartu retail market and continue the development activities in order to start

the retail activities in the new building in Hansakvartal.



A-Selver



More  attention  has  been  paid  to the development  of  Selver  due  to  the

increasing competition in Estonian retail market. The separate management team

was established, Urmo Vallner was elected as a chairman of board at 1st March.

Previously Urmo Vallner has worked as a finance director of Tallinna Kaubamaja

Group.



New  Tondi  Selver  was  opened at 17 May, the store  space  of  A-Selver  and

Tallinna Kaubamaja Group was enlarged by 1320 m².



A-Selver has agreed with Tallinna Kaubamaja Kinnisvara at 30 November to  rent

1310  m²  store space in the new shopping center with total space of  4700  m²

space in Tallinn at Paldiski street 56.



The main objectives of A-Selver in 2002 are the development of the existing

retail chain, expansion of the chain in Tallinn and other towns in Estonia,

implementation of structural changes for more effective labor resource use.

Two new shops are planned to be opened in 2002 – Merimetsa Selver in June and

Mai Selver in Pärnu in May. Mai Selver will be opened at the location of

previous Viiburi shopping center and is the first Selver outside of Tallinn.

The store space in Mai Selver will be 1470 m², the assortment of goods will

cover grocery and commodity goods, as well as the enlarged assortment of

consumer goods.



Tallinna Kaubamaja Kinnisvara



In 2001 two main investment projects were started. Real estate was acquired in

Tartu at Riia 1, Vanemuise 2 ja Küüni 14 (Hansakvartal) in order to start the

development of multifunctional center. The main operator will be AS Tartu

Kaubamaja. The archeological explorations were carried out in 2001.

As a second project, a development of Merimetsa Selver was started in Tallinn

at Paldiski street 56. For that purpose an additional land plot was acquired

next to the plot already owned at Paldiski street 58b. This was necessary for

better accessibility and parking conditions.Part of the real estate was sold

to AS Neste Eesti that will build an automated gas station next to Selver

building. In 2001 a detailed plan was agreed for that area block and

construction was started. The planned opening of Merimetsa Selver is in June

2002.



The privatization of the real estate in Tallinn at Veerenni street 65 was

concluded. The real estate was acquired using the preemptive right. As the

Tallinna Kaubamaja Group does not need the abovementioned real estate for it’s

development of the sales space, it was sold in February 2002.



Minor investments to the main building of Tallinna Kaubamaja at Gonsiori

street 2 and to the building of Punane Selver at Punane street 46 were made in

order to improve the stores’ space.



Main objectives of Tallinna Kaubamaja Kinnisvara are the completion of the

building for Merimetsa Selver and finding new projects for expansion of Selver

store chain. New property has been acquired in Tallinn at Vesivärava 37. The

development of Hansakvartal is continued in Tartu. Management is looking for

opportunities for enlargement of Pirita Selver and for improving the

efficiency of usage of Gonsiori 2 building.



The new chairman of the board of AS Tallinna Kaubamaja Kinnisvara is Peeter

Kütt since 9 November 2001.





Katrin Mühls

CFO

+372 6 673 200