TALLINNA KAUBAMAJA                FINANCIAL RESULTS                   28.02.2005



FINANCIAL RESULTS FOR 12 MONTHS AND Q4



The consolidated unaudited net sales of Tallinna Kaubamaja Group for the 12

months of 2004 were 2 billion kroons (129.2 million euros). The net sales of the

comparable period last year were 1.8 billion kroons (112.5 million euros). The

net sales increased by 15 per cent.



The consolidated unaudited net sales of the Group for Quarter 4 were 615.3

million kroons (39.2 million euros) that is 17 per cent higher than the net sales

of the same period last year when the net sales were 526.6 million kroons (33.7

million euros).



The sales of A-Selver increased by 20 per cent in Q4. 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 sales of Tallinna Kaubamaja in Q4 amounted to 116 per cent of the sales last

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

into Viru Centre. The sales of Tartu Kaubamaja in Q 4 amounted to 102 per cent of

the sales of the same period last year.



The average sales area in the 12 months of 2004 was 39 327 sq m and within the

same period last year 32 845 sq m, constituting an increase of 20 per cent

(including the increase of the sales area of the Selver chain of 11 per cent).



The consolidated net profit of the Group for the 12 months of 2004 excluding

profit from sale of fixed assets was 58.1 million kroons (3.7 million euros) that

is 12 per cent less over the same period last year when the profit was 66.1

million kroons (4.2 million euros). The decrease in profit is an effect of the

vast expansion of Tallinna Kaubamaja last April whereby the sales area was

increased by 1.5 times.



The net profit of the Group for 12 months was 98.7 million kroons (6.3 million

euros) including a profit from the sale of fixed assets in the amount of 40.6

million kroons (2.6 million euros).



The consolidated net profit of the Group for Quarter 4 of 2004 was 33.8 million

kroons (2.1 million euros), amounting to 91 per cent of the net profit last year

when the respective figure was 37.2 million kroons (2.4 million euros).



Since the year 2000 the fixed asset group "Land and buildings" of Tallinna

Kaubamaja AS is recorded based on the revaluation method. According to

international accounting standards a revaluation of land and buildings was

carried out by an independent real estate expert and the result is recorded in

the balance sheet of Tallinna Kaubamaja AS as of 31.12.2004. As a result of the

expert revaluation the value of land and buildings and equity increased by 110

million kroons (7 million euros), including the increased value of Gonsiori 2,

Tallinn of 102 million kroons (6.5 million euros).



TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                         in thousands of EEK/EUR

                         31.12.2004         31.12.2003

                         The Group          The Group

 ASSETS                     EEK       EUR      EEK       EUR

Current assets

Cash and bank                77 967    4 983    73 311    4 685

Trade receivables            14 211      908     8 419      538

Other receivables             6 148      393     4 159      266

Accrued income                   80        5        33        2

Prepaid expenses              1 123       72     2 136      137

Inventories                 235 336   15 041   175 971   11 247

Total current assets        334 865   21 402   264 029   16 875

Non-current assets

L-T financial assets

Shares of assoc. co.          6 769      433     5 427      347

L-T receivables from

associated Co.s              12 328      788    12 028      769

Total L-T fin. assets        19 097    1 221    17 455    1 116

Tangible fixed assets       672 692   34 387   528 234   33 760

Intangible assets                 0        0      -938      -60

Total non-current assets    691 789   35 607   544 751   34 816

TOTAL ASSETS              1 026 655   57 009   808 779   51 690



LIABILITIES AND

OWNERS’ EQUITY

Debt liabilities             31 248    1 997    50 653    3 237

Cust. advances for

goods and serv.               5 529      353     4 820      308

Supplier payables           202 313   12 930   163 562   10 453

Other payables               40 849    2 611    35 384    2 261

Total current liab.         279 939   17 891   254 419   16 260

L-T debt liabilities        102 625    6 559   119 029    7 607

Total non-current liab.     102 625    6 559   119 029    7 607

Total liabilities           382 564   24 450   373 449   23 868

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        257 956   16 486   152 016    9 716

Retained earnings           212 251   13 565   142 088    9 081

Net profit for the per.      98 733    6 310    66 075    4 223

Total owners’ equity        644 091   41 165   435 331   27 823

TOTAL LIABILITIES

AND OWNERS’ EQUITY        1 026 655   65 615   808 779   51 690



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                         12 m. 2004         12 m. 2003

                         The Group          The Group

                            EEK       EUR      EEK       EUR

Operating income

Net sales                 2 021 830  129 218 1 760 768  112 534

Other op. income             91 165    5 827    43 815    2 800

Total op. income          2 112 995  135 045 1 804 583  115 334

Operating expenses

Cost of goods sold       -1 524 271  -97 419-1 330 289  -85 021

Other op. expenses         -242 808  -15 518  -193 087  -12 341

Personnel expenses         -177 800  -11 364  -148 049   -9 462

Depreciation

Depreciation of FA          -58 898   -3 764   -52 376   -3 347

Depr. of  goodwill              938       60       446       28

Other expenses               -5 106     -326    -6 604     -422

Total op. expenses       -2 007 945 -128 331-1 729 959 -110 565

Operating profit            105 050    6 714    74 624    4 769

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries               1 342       86     1 484       95

Interest income/exp.         -7 386     -472    -9 923     -634

Other fin. inc./expenses       -273      -17      -109       -7

Net profit                   98 733    6 310    66 075    4 223



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                          Q4 2004           Q4 2003

                         The Group          The Group

                            EEK       EUR      EEK       EUR

Operating income

Net sales                   615 258   39 322   526 599   33 656

Other op. income             14 858      950     9 999      639

Total op. income            630 116   40 272   536 598   34 295

Operating expenses

Cost of goods sold         -457 086  -29 213  -394 709  -25 227

Other op. expenses          -71 914   -4 596   -52 132   -3 332

Personnel expenses          -51 089   -3 265   -42 300   -2 703

Depreciation

Depreciation of FA          -16 033   -1 025    -8 915     -570

Depr. of  goodwill              586       37       117        7

Other expenses                 -148       -9       218        0

Total op. expenses         -595 684  -38 071  -497 721  -31 824

Operating profit             34 432    2 201    38 878    2 471

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                 827       53       522       33

Interest income/exp.         -1 402      -90    -2 095     -134

Other fin. inc./expenses        -53       -3       -94       -6

Net profit                   33 804    2 160    37 211    2 364





Katrin Mühls

CFO and Sales Director

Tallinna Kaubamaja AS

phone: +372 6 673 200