Tallinna Kaubamaja                 FINANCIAL RESULTS                   02.08.2005



FINANCIAL RESULTS FOR 6 MONTHS AND Q2



The consolidated unaudited net sales of Tallinna Kaubamaja Group for the 6 months

of 2005 were 1210.9 million kroons (77.4   million euros). The net sales of the

comparable period last year were 900.6 million kroons (57.6 million euros). The

net sales increased by 34 per cent.



The consolidated unaudited net sales of the Group for Quarter 2 were 670.4

million kroons (42.8 million euros) that is 43 per cent higher than the net sales

of the same period last year when the net sales were 467.6 million kroons (29.9

million euros).



The sales of A-Selver increased by 37 per cent in 6 months of 2005. One of the

sources of the good result was the increase in number of new customers and the

successful expansion of the chain in Tartu and in Võru.



In the department store sector the sales of 6 months of 2005 increased by 28 per

cent of the sales last year. The reason lies in the extension of Tallinna

Kaubamaja to Viru Center, thorough redesign of the shopping environment and

thorough widening the range of internationally well-known brands. All this has

increased the number of new customers.



The average sales area in the 6 months of 2005 was 44 149 sq m and within the

same period last year 36 462 sq m, constituting an increase of 21 per cent.



The consolidated net profit of the Group for the 6 months of 2005 was 32 million

kroons (2 million euros), showing an increase of 133 per cent over the same

period last year when the profit was 13.7 million kroons (0.9 million euros).



The consolidated net profit of the Group for Quarter 2 of 2005 was 23.4 million

kroons (1.5 million euros), amounting to 259 per cent of the net profit last year

when the respective figure was 6.5 million kroons (0.4 million euros).



TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                         in thousands of EEK/EUR

                         30.06.2005           30.06.2004

                          The Group           The Group

 ASSETS                      EEK       EUR       EEK       EUR

Current assets

Cash and bank                 64 580    4 127      8 684      555

Trade receivables             11 721      749      6 707      429

Other receivables              7 646      489      4 044      258

Accrued income                    36        2          6        0

Prepaid expenses              18 056    1 154      7 674      490

Inventories                  265 082   16 942    198 413   12 681

Total current assets         367 120   23 463    225 527   14 414

Non-current assets

L-T financial assets

Shares of assoc. co.           7 484      478      5 789      370

L-T receivables from

associated Co.s               12 328      788     12 103      774

Total L-T fin. assets         19 812    1 266     17 892    1 144

Tangible fixed assets        800 249   51 145    606 660   38 773

Intangible assets             48 752    3 116       -704      -45

Total non-current assets     868 814   55 527    623 849   39 871

TOTAL ASSETS               1 235 934   78 991    849 376   54 285



LIABILITIES AND

OWNERS’ EQUITY

Debt liabilities              42 454    2 713    101 580    6 492

Cust. advances for

goods and serv.                4 788      306      4 325      276

Supplier payables            225 855   14 435    145 731    9 314

Other payables                41 785    2 671     29 643    1 895

Total current liab.          314 882   20 125    281 280   17 977

L-T debt liabilities         242 417   15 493    119 029    7 607

Total non-current liab.      242 417   15 493    119 029    7 607

Total liabilities            557 300   35 618    400 309   25 584

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         256 870   16 417    149 973    9 585

Retained earnings            314 619   20 108    210 207   13 435

Net profit for the per.       31 994    2 045     13 736      878

Total owners’ equity         678 635   43 373    449 067   28 701

TOTAL LIABILITIES

AND OWNERS’ EQUITY         1 235 934   78 991    849 376   54 285



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                          6 m. 2005          6 m. 2004

                          The Group           The Group

                             EEK       EUR       EEK       EUR

Operating income

Net sales                  1 210 932   77 393    900 649   57 562

Other op. income              25 003    1 598     23 292    1 489

Total op. income           1 235 935   78 991    923 941   59 051

Operating expenses

Cost of goods sold          -914 404  -58 441   -683 833  -43 705

Other op. expenses          -147 297   -9 414   -109 829   -7 019

Personnel expenses          -102 783   -6 569    -82 770   -5 290

Depreciation

Depreciation of FA           -32 900   -2 103    -27 267   -1 743

Depr. of  goodwill                          0        235       15

Other expenses                -4 153     -265     -3 264     -209

Total op. expenses        -1 201 537  -76 792   -906 729  -57 951

Operating profit              34 397    2 198     17 213    1 100

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                  715       46        362       23

Interest income/exp.          -2 999     -192     -3 640     -233

Other fin. inc./expenses        -120       -8       -199      -13

Net profit                    31 994    2 045     13 736      878



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                           Q2 2005           Q2 2004

                          The Group           The Group

                             EEK       EUR       EEK       EUR

Operating income

Net sales                    670 350   42 843    467 595   29 885

Other op. income              12 928      826     12 814      819

Total op. income             683 278   43 669    480 410   30 704

Operating expenses

Cost of goods sold          -503 798  -32 199   -350 692  -22 413

Other op. expenses           -76 941   -4 917    -60 621   -3 874

Personnel expenses           -57 415   -3 669    -44 003   -2 812

Depreciation

Depreciation of FA           -17 583   -1 124    -14 467     -925

Depr. of  goodwill                 0        0        117        7

Other expenses                -2 640     -169     -2 308     -147

Total op. expenses          -658 377  -42 078   -471 974  -30 165

Operating profit              24 901    1 591      8 436      539

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                  365       23        154       10

Interest income/exp.          -1 803     -115     -2 063     -132

Other fin. inc./expenses         -70       -4        -10       -1

Net profit                    23 392    1 495      6 517      416





Raul Puusepp

Chairman of the Board

phone: +372 731 5000