Tallinna Kaubamaja              FINANCIAL RESULTS                 29.11.2004



FINANCIAL RESULTS FOR 9 MONTHS and Q3



The consolidated unaudited net sales of Tallinna Kaubamaja Group for the 9 months

of 2004 were 1.4 billion kroons (89.9 million euros). The net sales of the

comparable period last year were 1.2 billion kroons (78.8 million euros). The net

sales increased by 14 per cent.



The consolidated unaudited net sales of the Group for Quarter 3 were 505.9

million kroons (32.3 million euros) that is 14 per cent higher than the net sales

of the same period last year when the net sales were 443 million kroons (28.3

million euros).



The sales of A-Selver increased by 17 per cent in Q3. The main source of the good

result is a work-up of Selvers opened during 2002 and a successful retaining of

the higher sales volumes as well as the opening of Saare Selver this June. The

number of purchases increased by 12 per cent and average purchase by 4 per cent.



The sales of Tallinna Kaubamaja in Q3 amounted to 111.7 per cent of the sales

last year. The main source of the increase is the expansion of the department

store into Viru Centre whereby the sales area increased by 1.5 times.



The sales of Tartu Kaubamaja in Q 3 amounted to 96 per cent of the sales of the

same period last year. The market situation has become much tougher in Tartu

within a couple of years. During the same period the investments of Tartu

Kaubamaja have remained at a low level, because a completely new Tartu Kaubamaja

will be opened in autumn 2005. The construction of the building is going as

scheduled.



The average sales area in the 9 months of 2004 was 38 500 sq m and within the

same period last year 32 495 sq m, constituting an increase of 18.5 per cent.



The consolidated net profit of the Group for the 9 months of 2004 excluding

profit from sale of fixed assets was 24.6 million kroons (1.6 million euros) that

is 15 per cent less over the same period last year when the profit was 28.9

million kroons (1.9 million euros). The net profit of the Group was 64.9 million

kroons (4.1 million euros) including a profit from the sale of fixed assets in

the amount of 40.3 million kroons (2.6 million euros).



The consolidated net profit of the Group for Quarter 3 of 2004 excluding profit

from sale of fixed assets was 10.8 million kroons (0.7 million euros), amounting

to 68 per cent of the net profit last year when the respective figure was 15.8

million kroons (1 million euros).



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

maintenance and personnel costs (increase by 1.3 times) resulting from the

extension of Tallinna Kaubamaja.



TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                         in thousands of EEK/EUR

                         30.09.2004         30.09.2003

                         The Group          The Group

 ASSETS                     EEK       EUR      EEK       EUR

Current assets

Cash and bank                18 631    1 191    45 917    2 935

Trade receivables           158 548   10 133     6 347      406

Other receivables             4 602      294     4 793      306

Accrued income                    0        0         9        1

Prepaid expenses              1 721      110     2 889      185

Inventories                 230 978   14 762   187 424   11 979

Total current assets        414 481   26 490   247 379   15 810

Non-current assets

L-T financial assets

Shares of assoc. co.          5 943      380     4 905      314

L-T receivables from

associated Co.s              12 328      788    12 028      769

Total L-T fin. assets        18 271    1 168    16 933    1 082

Tangible fixed assets       538 038   34 387   524 328   33 511

Intangible assets              -586      -37    -1 055      -67

Total non-current assets    555 722   35 517   540 206   34 525

TOTAL ASSETS                970 203   62 007   787 584   50 336



LIABILITIES AND

OWNERS’ EQUITY

Debt liabilities            127 124    8 125    55 776    3 565

Cust. advances for

goods and serv.               4 450      284     2 956      189

Supplier payables           169 505   10 833   138 874    8 876

Other payables               49 834    3 185    22 026    1 408

Total current liab.         350 914   22 428   219 632   14 037

L-T debt liabilities        119 029    7 607   169 833   10 854

Total non-current liab.     119 029    7 607   169 833   10 854

Total liabilities           469 943   30 035   389 464   24 891

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        148 951    9 520   153 425    9 806

Retained earnings           211 229   13 500   140 679    8 991

Net profit for the per.      64 929    4 150    28 864    1 845

Total owners’ equity        500 260   31 972   398 120   25 445

TOTAL LIABILITIES

AND OWNERS’ EQUITY          970 203   62 007   787 584   50 336



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                         9 m. 2004          9 m. 2003

                         The Group          The Group

                            EEK       EUR      EEK       EUR

Operating income

Net sales                 1 406 572   89 896 1 234 169   78 878

Other op. income             76 307    4 877    33 816    2 161

Total op. income          1 482 878   94 773 1 267 985   81 039

Operating expenses

Cost of goods sold       -1 067 186  -68 206  -935 580  -59 794

Other op. expenses         -170 894  -10 922  -140 955   -9 009

Personnel expenses         -126 711   -8 098  -105 749   -6 759

Depreciation

Depreciation of FA          -42 865   -2 740   -43 461   -2 778

Depr. of  goodwill              352       22       329       21

Other expenses               -4 957     -317    -6 822     -436

Total op. expenses       -1 412 261  -90 260-1 232 239  -78 754

Operating profit             70 618    4 513    35 746    2 285

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                 516       33       962       61

Interest income/exp.         -5 984     -382    -7 828     -500

Other fin. inc./expenses       -220      -14       -15       -1

Net profit                   64 929    4 150    28 864    1 845



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                          Q3 2004           Q3 2003

                         The Group          The Group

                            EEK       EUR      EEK       EUR

Operating income

Net sales                   505 923   32 334   442 969   28 311

Other op. income             53 014    3 388    11 036      705

Total op. income            558 937   35 723   454 005   29 016

Operating expenses

Cost of goods sold         -383 352  -24 501  -336 192  -21 487

Other op. expenses          -61 064   -3 903   -47 689   -3 048

Personnel expenses          -43 941   -2 808   -37 635   -2 405

Depreciation

Depreciation of FA          -15 598     -997   -14 177     -906

Depr. of  goodwill              117        7       117        7

Other expenses               -1 693     -108      -710      -45

Total op. expenses         -505 532  -32 309  -436 286  -27 884

Operating profit             53 405    3 413    17 719    1 132

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                 153       10       350       22

Interest income/exp.         -2 344     -150    -2 273     -145

Other fin. inc./expenses        -21       -1        -4        0

Net profit                   51 193    3 272    15 793    1 009







Katrin Mühls

CFO and Sales Director

Phone +372 6 673 200