TALLINNA SADAM         FINANCIAL RESULTS          29.08.2005



UNAUDITED INTERIM REPORT, 6 MONTHS 2005



PERFORMANCE RESULTS



During  the  first half of 2005 19.8 m tons of cargo  passed

through the harbours of Port of Tallinn, 0.5 m tons (or  3%)

more than the same period last year. 3.14 million passengers

passed   through  the  harbours,  exceeding   the   relevant

indicator  for  the  same period in  2004  by  0.34  million

passengers  (or 12%). The total cargo volume of  the  larger

ports  on  the  eastern cost of the Baltic Sea  amounted  to

159.0 m tons, an increase of 9% compared to the year before.

Thus,  the  growth of cargo volume passing through  Port  of

Tallinn  fell below the overall market growth in the region.

As  a  result of new Russian ports development projects  put

into  operation,  the  main share from  the  overall  market

growth  during  the last years has fallen to  Russian  ports

(during  the first half of 2005 the market share of  Russian

ports  increased from 36% to 43%). In terms of  total  cargo

volume  Port of Tallinn holds the third place after Port  of

Primorsk  (cargo  volume 28.1 m tons and a market  share  of

17.7%)  and St. Petersburg (cargo volume 26.3 m tons  and  a

market  share  of 16.6%) with a market share  of  12.5%.  In

terms of cargo volume growth, the leading ports were Port of

Primorsk   (an  increase  of  8.2  m  tons   or   41%)   and

St.Petersburg (an increase of 4.1 m tons or 19%)  and  among

the  ports  not belonging to Russia the leading  ports  were

Port  of Tallinn (an increase of 0.5 m tons or 3%) and  Port

of Riga (an increase of 0.45 m tons or 4%).



The  consolidated sales revenue of Port of Tallinn  for  the

first half of 2005 was EEK 579 m (EUR 37 m), which is EEK 28

m (EUR 1.8 m) or 5% more than the sales revenue for the same

period  last  year.  Although  the  number  of  ship   calls

decreased  by 1%, the port dues increased by EEK 12  m  (EUR

0.8  m) or 4% due to the increased average gross tonnage  of

the  cargo  vessels (larger vessels called the port).  As  a

result of the increase in the passenger number and the cargo

volume, the passenger dues increased by EEK 6 m (EUR 0.4  m)

or 12% and cargo dues by EEK 3 m (EUR 0.2 m) or 3%.



The consolidated operating expenses comprised a total of EEK

251 m (EUR 16 m), an increase of EEK 13 m (EUR 0.9 m) or  6%

(mainly due to increased depreciation cost arising from  the

increased  level of fixed assets). As a result of  increased

sales  revenue  and less increased operating  expenses,  the

consolidated  operating profit of Port of Tallinn  increased

by EEK 14 m (EUR 0.9 m) or 5% up to EEK 328 m (EUR 21 m).



The  consolidated net profit for the first half of 2005  was

EEK 209 m (EUR 13.4 m), which is EEK 90 m (EUR 5.8 m) or 30%

less  than  the relevant indicator for the same period  last

year. The decrease of the net profit is mainly the result of

the income tax on dividends declared in the amount of EEK 98

m (EUR 6.3 m), which in 2004 occurred during the second half

of  the year. Due to extensive investments into fixed assets

and substantial dividend payments, the total balance of debt

has   grown  significantly  and  the  interest  expense  has

increased by EEK 10 m (EUR 0.6 m) when compared to the  year

before.



During  the  first half of 2005 EEK 126 m  (EUR  8  m)  were

invested into fixed assets. Majority of the investments were

related  to the construction of new quays with supplementary

infrastructure in Muuga harbour and Paldiski South  harbour.

In  Muuga harbour the biggest projects were the construction

of a coal terminal, railways and viaducts. In Paldiski South

harbour the dredging of the port aquatory was performed  and

a warehouse for peat was purchased.





INTERIM FINANCIAL STATEMENTS



BALANCE SHEET, unaudited, in thousands

                             EEK       EEK      EUR      EUR

                        30.06.05  31.12.04 30.06.05 31.12.04

ASSETS                                                      

CURRENT ASSETS                                              

Cash and bank            117 608    99 409    7 517    6 353

Customer receivables      92 105    87 971    5 887    5 622

Other receivables and      9 604    13 777      614      881

prepayments

Inventories                1 262     1 333       81       85

Total current assets     220 579   202 490   14 098   12 941

                                                            

NON-CURRENT ASSETS                                          

Other shares and           2 855     2 855      182      182

securities

Other long-term           19 404    10 955    1 240      700

receivables

Tangible fixed assets  5 417 548 5 380 873  346 244  343 900

Total non-current      5 439 807 5 394 683  347 667  344 783

assets

                                                            

TOTAL ASSETS           5 660 386 5 597 173  361 765  357 725

                                                            

LIABILITIES                                                 

Current liabilities                                         

Short-term part of        69 540    69 540    4 444    4 444

long-term borrowings

Supplier payables         25 102    85 090    1 604    5 438

Taxes payable             79 529     8 429    5 083      539

Payable to               103 667         0    6 626        0

shareholders

Short-term provisions        322     2 084       21      133

Other payables            68 630    59 426    4 386    3 798

Total current            346 790   224 569   22 164   14 353

liabilities

                                                            

Non-current                                                 

liabilities

Long-term borrowings   1 438 654 1 391 714   91 947   88 947

Long-term provisions       2 778     2 778      178      178

Received co-financing      7 217       458      461       29

Long-term customer         2 148     3 384      137      216

prepayments

Total non-current      1 450 797 1 398 334   92 723   89 370

liabilities

                       1 797 587 1 622 903  114 887  103 722

Total liabilities

                                                            

OWNER`S EQUITY                                              

Capital and reserves                                        

attributable to equity

holders of the parent

Share capital at       2 750 000 2 750 000  175 757  175 757

nominal value

Statutory reserve        275 000   265 000   17 576   16 937

Hedge reserve            -20 757   -11 918   -1 327     -762

Retained earnings        648 792   571 584   41 465   36 531

Profit for the year      208 660   398 209   13 336   25 450

Total capital and      3 861 695 3 972 875  246 807  253 913

reserves attr. to

equity holders of the

parent

                                                            

Minority interest          1 104     1 395       71       89

Total owner’s equity   3 862 799 3 974 270  246 878  254 002

                                                            

TOTAL LIABILITIES AND  5 660 386 5 597 173  361 765  357 725

OWNER’S EQUITY



INCOME STATEMENT, unaudited, in thousands



                        EEK      EEK      EUR     EUR

                   6 months 6 months 6 months 6 months

                       2005     2004     2005    2004

                                                     

Sales revenue       578 594  551 091   36 979  35 221

Other income          2 350    2 031      150     130

Operating expenses -107 936 -105 938   -6 898  -6 771

Personnel expenses  -60 509  -57 319   -3 867  -3 663

Depreciation and    -82 305  -74 155   -5 260  -4 739

impairment

Other expenses       -1 646   -2 254     -105    -144

OPERATING PROFIT    328 548  313 456   20 998  20 033

                                                     

Financial income                                     

and expenses

Interest expense    -23 808  -14 126   -1 522    -903

Other financial       1 839     -691      118     -44

income and expense

Total financial     -21 969  -14 817   -1 404    -947

income and expenses

Profit from         306 579  298 639   19 594  19 087

ordinary activities

                                                     

Income tax          -98 210        0   -6 277       0

NET PROFIT FOR THE  208 369  298 639   13 317  19 087

PERIOD

Profit attributable                                  

to:

Equity holders of   208 660  298 929   13 336  19 105

the parent

Minority interest      -291     -290      -19     -19





Tiina Liitmäe

Marketing Manager

+372 631 8066