KALEV

INCOME STATEMENT



AUDITED AND CONSOLIDATED INCOME STATEMENT 1999



in EEK

                                       1999           1998



Net sales                       353,495,349    433,436,137

Cost of goods sold              260,408,532    334,992,607



Gross profit                     93,086,817     98,443,530



Marketing expenses               21,590,199     28,874,491

Operating expenses               42,206,445     47,688,795

Other revenue                       573,277      3,611,028

Other expenses                   45,414,892     39,781,550



OPERATING LOSS                  -15,551,442    -14,290,278



FINANCIAL INCOME                  8,339,715      1,777,591

Income from sale of               2,243,380

subsidiary

Other financial income            6,096,335      1,777,591

FINANCIAL EXPENSES               35,962,631     65,932,666

Loss from equity method               3,426     31,480,418

Other financial expenses         35,959,205     34,452,248



Loss before taxes               -43,174,358    -78,445,353



Deferred income tax liability                    2,728,903



Loss after taxes                -43,174,358    -75,716,450



Minority interest                                2,299,291



Net loss                        -43,174,358    -73,417,159



Net loss per share                    -5.48          -9.32





Annika Rinde

Executive assistant

+372 628 3710