Tallinna Kaubamaja                 ANNOUNCEMENT                        21.04.2005



LOAN AGREEMENT



On 19 April Tartu Kaubamaja Kinnisvara OÜ a full subsidiary of Tallinna Kaubamaja

Kinnisvara Ltd., concluded a long-term loan agreement with SEB Eesti Ühispank in

the amount of 180 million EEK (EUR 11.5 million) with the term of 7 years. The

loan interest is composed of 6 months' Euribor and margins of 0,4%. Tallinna

Kaubamaja Kinnisvara Ltd. is a full subsidiary of Tallinna Kaubamaja AS.

The loan amount will be used to finance the building of Tartu Kaubamaja.



The collaterals of the loan are the guarantee of Tallinna Kaubamaja Kinnisvara

Ltd. in amount of 100 million EEK (EUR 6.4 million) and    first mortgage on

properties at Riia 1, Vanemuise 2 and Küüni 14 in Tartu.





Raul Puusepp

The Chairman of Board

Phone: +372 7 315 000