Tallinna Kaubamaja            FINANCIAL RESULTS                 08/13/2002



FINANCIAL RESULTS FOR 6 MONTHS 2002



The consolidated results of Tallinna Kaubamaja Group include 100% subsidiaries

AS A-Selver, AS Tartu Kaubamaja, Tallinna Kaubamaja Kinnisvara AS and

associated company Rävala Parkla AS (50%).



The consolidated unaudited net sales for the 6 months of 2002 were 712 million

kroons (45,5 million euros). The net sales of the comparable period of last

year were 654,3 million kroons (41,8 million euros). The average sales area in

the 6 months period was 27 172 sq m and within the same period last year 25

842 sq m. The increase in net sales of the Group in the 6 months period of

2002 was 8,8 per cent and the increase in sales area was 5,1 per cent.



The net sales of the Group split up as follows: net sales of Tallinna

Kaubamaja (parent company) 265,6 million kroons (17 million euros) with an

increase of 7 per cent over the comparable period last year, net sales of A-

Selver 378,2 million kroons (24,2  million euros) with an increase of 12 per

cent and net sales of Tartu Kaubamaja 68,2 million kroons (4,4 million euros)

with a decrease of 5 per cent.



The consolidated net profit of the Group for the 6 months was 23,3 million

kroons (1,5 million euros), showing an increase of 18,8 million kroons (1,2

million euros) in comparison to the same period last year when the net profit

of the Group was 4,5 million kroons (0,3 million euros). Net profit per share

was 3,43 kroons (0,22 euros) and in the same period last year 0,66 kroons

(0,04 euros).



In the period of 6 months the efficiency of the Group was considerably

improved: the net sales per employee increased by 19 per cent in comparison to

the same period last year and the sales area per employee increased by 15 per

cent. At the same time the average number of employees decreased by 8 per

cent. The inventory turnover increased by 11 per cent in the period of 6

months of 2002. Net profit margin increased by 4,8 times, being 3,3 per cent

for 6 months this year and 0,7 per cent last year.



During the reported period the Group invested into tangible fixed assets in

the amount of 107,5 million kroons (6,9 million euros) including capitalized

long-term rent agreement for the building of Mai Selver in the amount of 42,8

million kroons (2,7 million euros). Another large investment was the building

of Merimetsa Selver in the amount of 34,2 million kroons (2,2 million euros).



On the 10th of May AS A-Selver opened Mai Selver in Pärnu with the sales area

of ca 1500 sq m and on the 30th of May they opened Merimetsa Selver in Tallinn

with the sales area of ca 1300 sq m. During the current year three more

Selvers will be opened: a Selver in Viljandi with the sales area of ca 1200 sq

m to be opened in October, a Selver in Rakvere with the sales area of ca 1200

sq m to be opened in September and Torupilli Selver in Tallinn with the sales

area of ca 1700 sq m to be opened in December.





TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                                   30.06.2002        31.12.2001

                                   in thousands of EEK/EUR

                                   The Group         The Group

 ASSETS                               EEK      EUR      EEK      EUR

Current assets

Cash and bank                         27 832    1 779   76 199    4 870

Trade receivables                      2 793      179    5 100      326

Other receivables                      3 295      211    3 063      196

Accrued income                            85        5       83        5

Prepaid expenses                       5 537      354    2 496      160

Inventories                          170 364   10 888  170 693   10 909

Total current assets                 209 906   13 415  257 633   16 466

Non-current assets

Long-term financial assets

Shares of assoc. companies             3 317      212    2 844      182

Long-t receivables from ass. Co.s     12 028      769   12 028      769

Other long-term receivables                0        0        0        0

Total long-term fin. assets           15 345      981   14 872      951

Tangible fixed assets

Land and buildings                   438 218   28 007  360 567   23 044

Plant and equipment                   83 847    5 359   70 469    4 504

Other equipment and fixtures         149 797    9 574  141 514    9 044

Accumulated depreciation            -174 160  -11 131 -151 123   -9 659

Construction in progress               2 976      190    4 062      260

Prep. to suppl. for tang. FA           1 768      113    2 459      157

Total tangible fixed assets          502 446   32 112  427 949   27 351

Intangible assets                     -1 549      -99   -1 713     -110

Total non-current assets             516 243   32 994  441 108   28 192

TOTAL ASSETS                         726 149   46 409  698 741   44 658



LIABILITIES AND OWNERS’ EQUITY

Debt liabilities                     142 076    9 080  131 053    8 376

Cust. advances for goods and serv.       717       46    3 161      202

Supplier payables                     80 672    5 156  108 552    6 938

Other payables                        20 436    1 306   24 031    1 536

Total current liabilities            243 900   15 588  266 796   17 051

Long-term debt liabilities           127 936    8 177   33 032    2 111

Total non-current liabilities        127 936    8 177   33 032    2 111

Total liabilities                    371 836   23 765  299 828   19 162

Owners’ equity

Share capital                         67 882    4 338   67 882    4 338

Statutory legal reserve                7 269      465    7 269      465

Reval. reserve of fixed assets       158 727   10 145  160 964   10 287

Retained earnings                     97 153    6 209  127 040    8 119

Net profit for the financial year     23 282    1 488   35 758    2 285

Total owners’ equity                 354 313   22 645  398 913   25 495

TOTAL LIAB. AND OWNERS’ EQUITY       726 149   46 409  698 741   44 658



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                                   in thousands of EEK/EUR

                                     2002     2002     2001     2001

                                   6 months 6 months 6 months 6 months

                                      EEK      EUR      EEK      EUR

Operating income

Net sales                             712044    45508   654317    41819

Other operating income                 17967     1148     9945      636

Total operating income                730011    46656   664262    42454

Operating expenses

Cost of goods sold                   -530710   -33919  -486379   -31085

Other operating expenses              -78663    -5027   -75704    -4838

Personnel expenses                    -64256    -4107   -64566    -4127

Depreciation                          -26186    -1674   -25664    -1640

Depr. and value adjustments of FA     -26351    -1684   -25711    -1643

Depreciation of  goodwill/badwill        165       11       48        3

Other expenses                         -2903     -186    -1287      -82

Total operating expenses             -702718   -44912  -653600   -41773

Operating profit                       27292     1744    10663      681

Financial income                        1570      100     1114       71

Fin. inc. on shares in subsidiaries      473       30        0        0

Interest income                         1097       70      243       16

Other financial income                     0        0      871       56

Financial expenses                     -5581     -357    -7318     -468

Fin. exp. on shares in subsidiaries        0        0      -48       -3

Interest expenses                      -5512     -352    -7147     -457

Other financial expenses                 -69       -4     -123       -8

Net profit                             23282     1488     4459      285





Katrin Mühls

CFO

6 673 200