Tallinna Kaubamaja            NEWS RELEASE                      04/29/2004



CONSTRUCTION OF TARTU KAUBAMAJA BUILDING



Tallinna Kaubamaja Kinnisvara AS, daughter company of Tallinna Kaubamaja AS,

concluded a construction agreement on 14th of April with the company Skanska

EMV AS to construct the first stage of the new building of Tartu Kaubamaja

(Tartu Department Store) at Riia 1, Vanemuise 2 and Küüni 14, Tartu (so-

called Hansa Quarter). The construction cost of the first stage is 27.5

million kroons (1.8 million euros).



The total construction cost will be approximately 250 million kroons (16

million euros). The closed net area of the building is 28 500 sq m and

leasable area 16 800 sq m. There will be over 220 parking places in the

building.



The biggest operator will be Tartu Kaubamaja (leasable space 8400 sq m,

including selling area of 6700 sq m). It is planned to find tenants who will

support and supplement the product selection of Tartu Kaubamaja.



The construction will be completed by the autumn of 2005.





Katrin Mühls

CFO

+372 6 673 200