Kalev                            ANNOUNCEMENT                           07.01.2005



Share in subsidiary increases



On Thursday, 6 January 2005,  Skanska EMV AS transferred 40.7% of the shares of 

AS  Kalev Real Estate Company (AS Kalev REC) to the securities account of AS Kalev,  

through which AS Kalev became the owner of 100% of the subsidiary's shares.



Prior to that, AS Kalev paid Skanska EMV AS all of the remaining  balance  of  the

payments due for the 40.7% stake in AS Kalev REC - 16 950 000 kroons altogether.



Pursuant to the agreement between the shareholders of AS  Kalev  and  Skanska  EMV

AS, AS Kalev paid a total of 25.2 million kroons for the shares it  acquired  (see

stock exchange release 2 July 2004).





Ruth Roht

PR manager

+372 6 077 858