Tallinna Kaubamaja            FINANCIAL RESULTS                 04/26/2004



FINANCIAL RESULTS FOR Q1 2004



The consolidated unaudited net sales of Tallinna Kaubamaja Group for the 1st

Quarter 2004 were 433 million kroons (27.7 million euros). The net sales of

the comparable period of last year were 364.7 million kroons (23.3 million

euros).



The average sales area in the 1st Quarter 2004 was 34 315 sq m and within the

same period last year 31 640 sq m.



The increase in net sales of the Group in the 1st quarter of 2004 was 18.7 per

cent and the increase in sales area was 8.5 per cent. Thus, the increase in

sales was mote than twice as big as the increase in sales area.



The increase in sales of the Group was mostly influenced by the Selver Chain:

the increase in sales of A-Selver was up to 26 per cent. Above average

combined increase in sales per sales area - 31 per cent - was seen in five

Selvers opened in 2002: Mai (in Pärnu), Krooni (in Rakvere), Männimäe (in

Viljandi), Merimetsa and Torupilli Selvers (last two in Tallinn). This is an

indication that the new Selvers have successfully finished the working-up-

period and found their customer base. It also shows that the position of the

Selver chain has considerably improved outside Tallinn.



The increase in sales of the department store sector (Tallinna Kaubamaja,

Tartu Kaubamaja, Rocca al Mare Fashion Store) for the 1st Quarter was 7 per

cent over the same period last year. A quarter of the growth is attributable

to Rocca al Mare Fashion Store (that was opened in August 2003). A positive

effect was gained from pre-opening sales of new brands of Menswear and

Womenswear Departments that were introduced with the extension of Kaubamaja

(opened on 15th of April) and a sharp increase in brand promotions in

cooperation with suppliers of the Beauty Department prior to extension.



The consolidated net profit of the Group for the 1st Quarter of 2004 was 7.2

million kroons (0.5 million euros). The net result is an increase of 8.4

million kroons (0.5 million euros) over the comparable period when the net

loss of the Group was 1.2 million kroons (0,07 million euros).



TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                        in thousands of EEK/EUR

                         Q1 2004          Q1 2003

                        The Group         The Group

 ASSETS                    EEK      EUR      EEK      EUR

Current assets

Cash and bank              14 712      940   73 311    4 685

Trade receivables           5 164      330    8 419      538

Other receivables           6 322      404    4 159      266

Accrued income                  0        0       33        2

Prepaid expenses            6 410      410    2 136      137

Inventories               185 858   11 879  175 971   11 247

Total current assets      218 467   13 963  264 029   16 875

Non-current assets

L-T financial assets

Shares of assoc. co.        5 636      360    5 427      347

L-T receivables from

associated Co.s            12 028      769   12 028      769

Total L-T fin. ass.        17 664    1 129   17 455    1 116

Tangible fixed ass.       555 093   35 477  528 234   33 760

Intangible assets            -821      -52     -938      -60

Total non-current assets  571 936   36 553  544 751   34 816

TOTAL ASSETS              790 403   50 516  808 779   51 690



LIABILITIES AND

OWNERS’ EQUITY

Debt liabilities           46 800    2 991   50 653    3 237

Cust. advances for

goods and serv.             3 416      218    4 820      308

Supplier payables         153 880    9 835  163 562   10 453

Other payables             24 727    1 580   35 384    2 261

Total current liab.       228 823   14 624  254 419   16 260

L-T debt liabilities      119 029    7 607  119 029    7 607

Total non-current liab.   119 029    7 607  119 029    7 607

Total liabilities         347 852   22 232  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      150 994    9 650  152 016    9 716

Retained earnings         209 185   13 369  142 088    9 081

Net profit for the per.     7 219      461   66 075    4 223

Total owners’ equity      442 550   28 284  435 331   27 823

TOTAL LIABILITIES

AND OWNERS’ EQUITY        790 403   50 516  808 779   51 690



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                        in thousands of EEK/EUR

                         Q1 2004          Q1 2003

                        The Group         The Group

                           EEK      EUR      EEK      EUR

Operating income

Net sales                 433 054   27 677  364 718   23 310

Other op. income           10 478      670   11 503      735

Total op. income          443 531   28 347  376 221   24 045

Operating expenses

Cost of goods sold       -333 141  -21 292 -278 394  -17 793

Other op. expenses        -49 208   -3 145  -46 329   -2 961

Personnel expenses        -38 767   -2 478  -32 340   -2 067



Depreciation

Depreciation of FA        -12 800     -818  -14 812     -947

Depr. of  goodwill            117        7       94        6

Other expenses               -956      -61   -3 049     -195

Total op. expenses       -434 755  -27 786 -374 830  -23 956

Operating profit            8 777      561    1 391       89

Financial income

Fin. inc./exp. on shares

in subsidiaries               209       13      286       18

Interest income/exp.       -1 576     -101   -2 830     -181

Other fin. inc./expenses     -189      -12      -21       -1

Net profit                  7 219      461   -1 174      -75





Katrin Mühls

CFO

+372 6 673 200