Tallinna Kaubamaja            NEWS RELEASE                      03/12/2002



PLANNED DIVIDENDS



Having analysed the audited annual results of Tallinna Kaubamaja Ltd. the

Management Board decided to propose the dividend payout of 10 kroons (0,64

euros) per share as one issue in the profit allocation report to be presented

to the regular annual meeting of shareholders.



The equity structure of the group as at 31.12.2001 before and after dividend

payout is as follows:



                              before dividends         after dividends

                              EEK       EUR       EEK       EUR

share capital                  67 882    4 339     67 882    4 339

reserves                        7 269      465      7 269      465

revaluation reserve of FA     160 964   10 288    160 964   10 288

retained earnings of pr.years 127 040    8 119     59 158    3 781

profit for the financial year  35 758    2 285     35 758    2 285

total equity                  398 913   25 495    331 031   21 156



The equity to assets ratio of the Group was 57,1 per cent as at 31.12.2001.

Considering the existing benchmarks in the retail sector and the development

plans of the Group, the management`s estimation is that a sufficient level of

this indicator would be 40 per cent. However, taking into account the recently

tightened competition in the retail sector, the management considers it

rational to keep the equity to assets ratio between 45 and 50 per cent.



In the opinion of the management the planned dividend payout creates an

opportunity to increase the return on equity of Tallinna Kaubamaja Ltd. in the

future.





Katrin Mühls

CFO

+372 6 673 200