Tallinna Kaubamaja            FINANCIAL RESULTS                 09/03/2004



FINANCIAL RESULTS FOR 6 MONTHS AND Q2



The consolidated unaudited net sales of Tallinna Kaubamaja Group for the 

6 months of 2004 were 900.7 million kroons (57.6   million euros). The net

sales of the comparable period last year were 791.2 million kroons (50.6

million euros). The net sales increased by 14 per cent.



The consolidated unaudited net sales of the Group for Quarter 2 were 467.6

million kroons (29.9 million euros) that is 10 per cent higher than the net

sales of the same period last year when the net sales were 426.5 million

kroons (27.3 million euros).



The sales of A-Selver increased by 18 per cent in Q2. One of the sources of

the good result is a successful launch of Selvers opened during 2002. The

biggest growth in sales was shown by Merimetsa Selver and Krooni Selver and

Selver Cuisine with the respective growth figures of 62, 34 and 22 per cent.



In the department store sector the sales of Q2 amounted to 97 per cent of

the sales last year. The reason lies in the thorough redesign of the

shopping environment and the extension of Tallinna Kaubamaja to Viru Center.

The departments moved and were closed during various periods. The opening of

the renewed Tallinna Kaubamaja was held on 15th of April, the Home

Department was opened 3 months later, i.e. on 15th of July. As a result the

sales area of the department store increased by 1,5 times. The proportion of

internationally well-known brands was considerably increased - as an example

let us mention clothing brands S.Oliver, Tom Tailor, Marc Aurel and Mexx and

beauty brands Chanel and Make Up Store - and the shopping environment was

turned more entertaining and family-oriented. As a new service Kaubamaja

offers personal shopping.



The average sales area in the 6 months of 2004 was 36 733 sq m and within

the same period last year 32 035 sq m, constituting an increase of 15 per

cent.



The consolidated net profit of the Group for the 6 months of 2004 was 13.7

million kroons (0.9 million euros), showing an increase of 5 per cent over

the same period last year when the profit was 13.1 million kroons (0.8

million euros).



The consolidated net profit of the Group for Quarter 2 of 2004 was 6.5

million kroons (0.4 million euros), amounting to 46 per cent of the net

profit last year when the respective figure was 14.2 million kroons (0.9

million euros).



One of the reasons of the decrease in profit was a sharp increase in the

maintenance and personnel costs (increase by 1.5 and 1.3 times respectively)

resulting from the extension of Tallinna Kaubamaja.





TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                         in thousands of EEK/EUR

                          Q2 2004          Q2 2003

                         The Group         The Group

 ASSETS                     EEK      EUR      EEK      EUR

Current assets

Cash and bank                8 684      555   27 832    1 779

Trade receivables            6 707      429    2 793      179

Other receivables            4 044      258    3 295      211

Accrued income                   6        0       85        5

Prepaid expenses             7 674      490    5 537      354

Inventories                198 413   12 681  170 364   10 888

Total current assets       225 527   14 414  209 906   13 415

Non-current assets

L-T financial assets

Shares of assoc. co.         5 789      370    3 317      212

L-T receivables from

associated Co.s             12 103      774   12 028      769

Total L-T fin. assets       17 892    1 144   15 345      981

Tangible fixed assets      606 660   38 773  502 446   32 112

Intangible assets             -704      -45   -1 549      -99

Total non-current assets   623 849   39 871  516 243   32 994

TOTAL ASSETS               849 376   54 285  726 149   46 409



LIABILITIES AND

OWNERS' EQUITY

Debt liabilities           101 580    6 492  142 076    9 080

Cust. advances for

goods and serv.              4 325      276      717       46

Supplier payables          145 731    9 314   80 672    5 156

Other payables              29 643    1 895   20 436    1 306

Total current liab.        281 280   17 977  243 900   15 588

L-T debt liabilities       119 029    7 607  127 936    8 177

Total non-current liab.    119 029    7 607  127 936    8 177

Total liabilities          400 309   25 584  371 836   23 765

Owners' equity

Share capital               67 882    4 338   67 882    4 338

Statutory legal reserve      7 269      465    7 269      465

Reval. reserve of FA       149 973    9 585  158 727   10 145

Retained earnings          210 207   13 435   97 153    6 209

Net profit for the per.     13 736      878   23 282    1 488

Total owners' equity       449 067   28 701  354 313   22 645

TOTAL LIABILITIES

AND OWNERS' EQUITY         849 376   54 285  726 149   46 409





TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                         6 m. 2004         6 m. 2003

                         The Group         The Group

                            EEK      EUR      EEK      EUR

Operating income

Net sales                  900 649   57 562  791 199   50 567

Other op. income            23 292    1 489   22 780    1 456

Total op. income           923 941   59 051  813 980   52 023

Operating expenses

Cost of goods sold        -683 833  -43 705 -599 388  -38 308

Other op. expenses        -109 829   -7 019  -93 266   -5 961

Personnel expenses         -82 770   -5 290  -68 114   -4 353

Depreciation

Depreciation of FA         -27 267   -1 743  -29 284   -1 872

Depr. of  goodwill             235       15      211       14

Other expenses              -3 264     -209   -6 112     -391

Total op. expenses        -906 729  -57 951 -795 953  -50 871

Operating profit            17 213    1 100   18 027    1 152

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                362       23      612       39

Interest income/exp.        -3 640     -233   -5 555     -355

Other fin. inc./expenses      -199      -13      -12       -1

Net profit                  13 736      878   13 072      835





TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                          Q2 2004          Q2 2003

                         The Group         The Group

                            EEK      EUR      EEK      EUR

Operating income

Net sales                  467 595   29 885  426 482   27 257

Other op. income            12 814      819   11 277      721

Total op. income           480 410   30 704  437 759   27 978

Operating expenses

Cost of goods sold        -350 692  -22 413 -320 995  -20 515

Other op. expenses         -60 621   -3 874  -46 937   -3 000

Personnel expenses         -44 003   -2 812  -35 774   -2 286

Depreciation

Depreciation of FA         -14 467     -925  -14 472     -925

Depr. of  goodwill             117        7      117        7

Other expenses              -2 308     -147   -3 063     -196

Total op. expenses        -471 974  -30 165 -421 123  -26 915

Operating profit             8 436      539   16 636    1 063

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                154       10      326       21

Interest income/exp.        -2 063     -132   -2 725     -174

Other fin. inc./expenses       -10       -1        9        1

Net profit                   6 517      416   14 246      910





Katrin Mühls

CFO and Sales Director

+372 6 673 200