AS Kalev                     Announcement                       23.02.2005



Kalev introduces series of economy-class sweets



AS Kalev has introduced a new series of sweets under its trademark Sonja in order

to strengthen its position in the economy-class sweets sector.



So far, AS Kalev products have been of an elite quality and pricing model and

Kalev's product development has not been very active in lower-priced products. In

the last few years, the share of sweets has started growing rapidly, leading to

the launch of a new brand. While in 2003 the share of lower-than-average-priced

candy made up an estimated 33% of the Estonian wrapped candy market, in 2004 the

figure already reached 42.5%.



Four candies especially designed for the Sonja line make up the assortment: a

cocoa-flavoured wafer candy, a sweet bite, lemon-flavoured jelly candy and a

peanut praline candy. All of the new candies are natural and free of

preservatives. The Sonja product line will be rounded out with a selection of

cookies. The candies, which come in a simple and distinctive packaging, form a

visually unified family of products.



AS Kalev is Estonia's largest confectionery. According to AC Nielsen retail trade

study data, Kalev's market share was at 44% in the chocolate and hard candy

product sector in October-November 2004.





Ruth Roht

PR manager

+ 372 6 077 858