KALEV

ANNOUNCEMENT



BOND ISSUE



On 15.09.2000 AS Kalev will issue three-months bonds, with EEK 10,000 

face value, to finance higher output during the pre-Christmas period.



The volume of the issue is EEK 18 million, at 7.5% interest rate. 

Redemption date is 15.12.2000. The issue is not public. The issue is 

arranged by AS Eesti Ühispank.



AS Kalev will use the proceeds from the bond issue to partially 

refinance its current liabilities, and to finance the increased 

output during the pre-Christmas period. Due to seasonal nature 

of the sweets market, the company's output and sales volumes are 

higher in H2, especially in Q4.



AS Kalev H1 2000 consolidated profit is EEK 5.8 million higher than 

in H1 1999, amounting to EEK 5.9 million. In H1 the company made EEK 

158 million net sales, providing 5% y-o-y growth.





Kristina Seimann

PR manager

+372 62 83 858