Tallinna Kaubamaja              ANNOUNCEMENT                      21.12.2004



Sale of assets to the subsidiary of Tallinna Kaubamaja Kinnisvara AS



On 17 December Tallinna Kaubamaja Kinnisvara AS (the real estate company) sold

the real estate with the address at Riia 1, Vanemuise 2 and Küüni 14, Tartu at

balance sheet value to Tartu Kaubamaja Kinnisvara OÜ, a full subsidiary. The

price of the transaction was 61.3 million kroons (3.9 million euros) plus VAT.

All agreements connected with the project were taken over by Tartu Kaubamaja

Kinnisvara OÜ.



The Chairman of the Board is Peeter Kütt and the members of the Supervisory Board

are Enn Kunila, Jüri Käo, Andres Järving, Indrek Vanaselja and Raul Puusepp.



Tartu Kaubamaja Kinnisvara OÜ will implement the project and conclude all

necessary agreements connected with it.



Katrin Mühls

CFO and Sales Director

Tallinna Kaubamaja AS

+372 6 673 200