Kalev                         ANNOUNCEMENT                        22.12.2004



Shareholder to drop another lawsuit



Yesterday, on 21 December 2004, AS Kalev received  the  Tallinn  City  Court

order dismissing the AS Milestone case and ordering the plaintiff to pay the

legal expenses incurred by AS Kalev in the amount of 50,000 kroons.



AS Milestone dropped the lawsuit filed for the purpose of declaring the real

right contract concluded between AS Kalev and OÜ Raldon null and  void,  and

deleting the related entries in the land register. The real  right  contract

was concluded for the purpose of selling to OÜ Raldon a 18,070/52,410  legal

share of the Pärnu mnt 139 immovable (AS Kalev production and administrative

building together with its service area).



The plaintiff also withdrew from legal action filed against other defendants

in the case. The court ordered the plaintiff to pay the court costs incurred

by these defendants in the total amount of 40,000 kroons.





Ruth Roht

PR manager

+372 6 077 858