KALEV                           ANNOUNCEMENT                        15.12.2004



Shareholder drops yet another lawsuit



On Monday, 13 December 2004, AS Kalev received a Tallinn City  Court  decision  in

which the court ended proceedings in the case brought by AS Milestone and  awarded

40,000 kroons in court costs to Kalev.



Plaintiff AS Milestone dropped its own suit, in which it was seeking annulment  of

the decisions taken at the regular general meetings of Kalev's shareholders on  13

June 2001 and 18 June 2002. The plaintiff was also seeking to  have  the  decision

taken by the AS Kalev board on 14 March 2003 declared null and void.



According to Kalev's attorney in the case, Leon Glikman, AS Milestone dropped  the

suit since it had become a lost  cause  following  a  Supreme  Court  decision  in

favour of Kalev on 1 November 2004. Glikman said that the Supreme  Court  rejected

as unsound AS Milestone's legal conception regarding AS Kalev's chairman having  a

dominant influence leading to a voting ban at AS Kalev.





Ruth Roht

PR manager

+ 372 6 077 858