Tallinna Kaubamaja            FINANCIAL RESULTS                 11/04/2003



FINANCIAL RESULTS FOR 9 MONTHS 2003



The consolidated unaudited net sales of Tallinna Kaubamaja Group for the 9

months of 2003 were 1.23 billion kroons (78.9 million euros). The net

sales of the comparable period of last year was 1 billion kroons (68.6

million euros). The net sales increased by 15 per cent.



The consolidated unaudited net sales of the Group for Quarter 3 were 443

million kroons (28.3 million euros) that is 23 per cent higher than the net

sales of the same period last year when the net sales were 361.3 million

kroons (23 million euros).



The average sales area in the 9 months of 2003 was 31 960 sq m and within

the same period last year 27 141 sq m, constituting an increase of 18 per

cent.



The consolidated net profit of the Group for the 9 months of 2003 was 28.9

million kroons (1.9 million euros), amounting to 90 per cent of the net

profit last year when the respective figure was 31.9 million kroons (2

million euros).



The consolidated net profit of the Group for Quarter 3 of 2003 was 15.8

million kroons (1 million euros) that is by 1.8 times higher than the net

profit of the same period last year of 8.7 million kroons (0.6 million

euros).



The biggest contribution to the increase of profit over Quarter 3 last year

was made by Selver (40 per cent of the increase). The repositioning of the

supermarket chain already initiated in 2002 whereby the price level was

considerably reduced has been successfully communicated to customers via

powerful marketing. Fair Days campaign of Selver has also proved popular.

The increase in sales of Selver Couisine has outperformed the overall

increase of sales of the chain by 4 per cent due to wider assortment and

advance ordering system. The number of purchases of the chain has increased

by 1.6 times over the period.



The share of the increase in the Group profit of Tallinn and Tartu

Department Stores was 31 per cent. Key elements to positive results were 

good choice of autumn collections and early deliveries of goods by the 

beginning of the season. Launch of the Fashion Store in the Rocca al Mare 

Shopping Centre was a success.



TALLINNA KAUBAMAJA AS

Consolidated unaudited balance sheet

                    in thousands of EEK/EUR

                    9 m. 2003          9 m. 2002          31.12.2002

                    The Group          The Group          The Group

 ASSETS                EEK       EUR      EEK       EUR      EEK       EUR

Current assets

Cash and bank           45 917    2 935    43 196    2 761    34 258    2 189

Trade receivables        6 347      406     3 454      221    10 250      655

Other receivables        4 793      306     3 421      219     3 454      221

Accrued income               9        1        59        4        98        6

Prepaid expenses         2 889      185     2 395      153     7 611      486

Inventories            187 424   11 979   172 145   11 002   163 442   10 446

Total current assets   247 379   15 810   224 670   14 359   219 112   14 004

Non-current assets

L-T financial assets

Shares of assoc. co.     4 905      314     3 579      229     3 943      252

Long-t receivables f    12 028      769    12 028      769    12 028      769

Total L-T fin. ass.     16 933    1 082    15 607      997    15 971    1 021

Tangible fixed ass.    524 328   33 511   513 397   32 812   542 744   34 688

Intangible assets       -1 055      -67    -1 466      -94    -1 384      -88

Total L-T assets       540 206   34 525   527 537   33 716   557 331   35 620

TOTAL ASSETS           787 584   50 336   752 207   48 075   776 443   49 624



LIABILITIES AND

OWNERS’ EQUITY

Debt liabilities        55 776    3 565   131 667    8 415    76 192    4 870

Customer prepaym.        2 956      189     1 138       73     3 648      233

Supplier payables      138 874    8 876   109 507    6 999   148 158    9 469

Other payables          22 026    1 408    18 998    1 214    28 739    1 837

Total current liab.    219 632   14 037   261 310   16 701   256 737   16 408

L-T debt liabilities   169 833   10 854   127 936    8 177   143 663    9 182

Total non-curr liab    169 833   10 854   127 936    8 177   143 663    9 182

Total liabilities      389 464   24 891   389 246   24 877   400 400   25 590

Owners’ equity

Share capital           67 882    4 338    67 882    4 338    67 882    4 338

Statutory reserve        7 269      465     7 269      465     7 269      465

Asset reval. reserve   153 425    9 806   158 727   10 145   156 490   10 002

Retained earnings      140 679    8 991    97 153    6 209    99 390    6 352

Profit for the per.     28 864    1 845    31 930    2 041    45 012    2 877

Total equity           398 120   25 445   362 961   23 197   376 044   24 034

TOTAL LIAB. AND

OWNERS’ EQUITY         787 584   50 336   752 207   48 075   776 443   49 624



TALLINNA KAUBAMAJA AS

Consolidated unaudited profit and loss statement

                    in thousands of EEK/EUR

                       2003               2002               2002

                     9 months           9 months          12 months

                    The Group          The Group          The Group

                       EEK       EUR      EEK       EUR      EEK       EUR

Operating income

Net sales            1 234 169   78 878 1 073 381   68 602 1 532 325   97 933

Other op. income        33 816    2 161    27 604    1 764    41 689    2 664

Total op. income     1 267 985   81 039 1 100 985   70 366 1 574 014  100 598

Operating expenses

Cost of goods sold    -935 580  -59 794  -801 759  -51 242-1 147 961  -73 368

Other op. expenses    -140 955   -9 009  -118 190   -7 554  -177 111  -11 319

Personnel expenses    -105 749   -6 759   -96 002   -6 136  -130 413   -8 335

Depreciation           -43 133   -2 757   -40 686   -2 600   -54 989   -3 514

Depreciation of FA     -43 461   -2 778   -40 933   -2 616   -55 319   -3 536

Depr. of  goodwill         329       21       247       16       329       21

Other expenses          -6 822     -436    -5 071     -324    -8 168     -522

Total op. expenses  -1 232 239  -78 754-1 061 708  -67 855-1 518 643  -97 059

Operating profit        35 746    2 285    39 277    2 510    55 371    3 539

Financial income         1 900      121     2 396      153     3 208      205

Fin. inc. on shares

in subsidiaries            962       61       734       47     1 099       70

Interest income            938       60     1 662      106     2 109      135

Financial expenses      -8 782     -561    -9 743     -623   -13 566     -867

Interest expenses       -8 767     -560    -9 634     -616   -13 397     -856

Other fin. expenses        -15       -1      -109       -7      -169      -11

Net profit              28 864    1 845    31 930    2 041    45 012    2 877





Katrin Mühls

CFO

+372 667 3200