Tallinna Kaubamaja                   Financial results                 11.11.2005



FINANCIAL RESULTS FOR 9 MONTHS AND Q3



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

of 2005 were 1.9 billion kroons (122.2   million euros). The net sales of the

comparable period last year were 1.4 billion kroons (89.9 million euros). The net

sales increased by 36 per cent.



The consolidated unaudited net sales of the Group for Quarter 3 were 700.6

million kroons (44.8 million euros) that is 38 per cent higher than the net sales

of the same period last year when the net sales were 505.9 million kroons (32.3

million euros).



The sales of A-Selver increased by 41 per cent in 9 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 the department store sector the sales of 9 months of 2005 increased by 26 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 9 months of 2005 was 45 192 sq m and within the

same period last year 38 313 sq m, constituting an increase of 18 per cent.



The consolidated net profit of the Group for the 9 months of 2005 was 43 million

kroons (2.7 million euros), showing an increase of  75 per cent over the same

period last year when the profit excluding profit from sale of fixed assets was

24.6 million kroons (1.6 million euros).  The net profit of the Group  for 9

months of 2004 was 64.9 million kroons (4.1 million euros) including a profit

from the sale of fixed assets.



The consolidated net profit of the Group for Quarter 3 of 2005 was 11 million

kroons (0.7 million euros), the net profit last year when the profit excluding

profit from sale of fixed assets was 10.8 million kroons (0.7 million euros).



Extension of Tartu Kaubamaja and opening three new Selver stores influenced the

results of Quarter 3.



TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                         in thousands of EEK/EUR

                         30.09.2005           30.09.2004

                          The Group           The Group

 ASSETS                      EEK       EUR       EEK       EUR

Current assets

Cash and bank                 12 154      777     18 631    1 191

Trade receivables             16 611    1 062    158 548   10 133

Other receivables              7 950      508      4 602      294

Accrued income                   140        9          0        0

Prepaid expenses              23 125    1 478      1 721      110

Inventories                  306 547   19 592    230 978   14 762

Total current assets         366 528   23 425    414 481   26 490

Non-current assets

L-T financial assets

Shares of assoc. co.           7 841      501      5 943      380

L-T receivables from

associated Co.s               11 828      756     12 328      788

Total L-T fin. assets                             18 271    1 168

Tangible fixed assets        906 970   57 966    538 038   34 387

Intangible assets             47 505    3 036       -586      -37

Total non-current assets     974 144   62 259    555 722   35 517

TOTAL ASSETS               1 340 672   85 685    970 203   62 007



LIABILITIES AND

OWNERS’ EQUITY

Debt liabilities              38 518    2 462    127 124    8 125

Cust. advances for

goods and serv.                3 435      220      4 450      284

Supplier payables            324 704   20 752    169 505   10 833

Other payables                41 968    2 682     49 834    3 185

Total current liab.          408 625   26 116    350 914   22 428

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            651 042   41 609    469 943   30 035

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         255 052   16 301    148 951    9 520

Retained earnings            316 437   20 224    211 229   13 500

Net profit for the per.       42 989    2 748     64 929    4 150

Total owners’ equity         689 630   44 075    500 260   31 972

TOTAL LIABILITIES

AND OWNERS’ EQUITY         1 340 672   85 685    970 203   62 007



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                          9 m. 2005          9 m. 2004

                          The Group           The Group

                             EEK       EUR       EEK       EUR

Operating income

Net sales                  1 911 485  122 166  1 406 572   89 896

Other op. income              39 501    2 525     76 307    4 877

Total op. income           1 950 986  124 691  1 482 878   94 773

Operating expenses

Cost of goods sold        -1 450 975  -92 734 -1 067 186  -68 206

Other op. expenses          -229 717  -14 682   -170 894  -10 922

Personnel expenses          -166 267  -10 626   -126 711   -8 098

Depreciation

Depreciation of FA           -51 193   -3 272    -42 865   -2 740

Depr. of  goodwill                                   352       22

Other expenses                -5 843     -373     -4 957     -317

Total op. expenses        -1 903 995 -121 687 -1 412 261  -90 260

Operating profit              46 992    3 003     70 618    4 513

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                1 072       69        516       33

Interest income/exp.          -4 952     -317     -5 984     -382

Other fin. inc./expenses        -122       -8       -220      -14

Net profit                    42 989    2 748     64 929    4 150



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                         in thousands of EEK/EUR

                           Q3 2005           Q3 2004

                          The Group           The Group

                             EEK       EUR       EEK       EUR

Operating income

Net sales                    700 553   44 774    505 923   32 334

Other op. income              14 498      927     53 014    3 388

Total op. income             715 051   45 701    558 937   35 723

Operating expenses

Cost of goods sold          -536 571  -34 293   -383 352  -24 501

Other op. expenses           -82 420   -5 268    -61 064   -3 903

Personnel expenses           -63 483   -4 057    -43 941   -2 808

Depreciation

Depreciation of FA           -18 293   -1 169    -15 598     -997

Depr. of  goodwill                                   117        7

Other expenses                -1 690     -108     -1 693     -108

Total op. expenses          -702 457  -44 895   -505 532  -32 309

Operating profit              12 594      805     53 405    3 413

Financial income/exp.

Fin. inc./exp. on shares

in subsidiaries                  357       23        153       10

Interest income/exp.          -1 954     -125     -2 344     -150

Other fin. inc./expenses          -2                 -21       -1

Net profit                    10 995      703     51 193    3 272



Raul Puusepp

Chairman of the Board

phone: +372 731 5000