KALEV

ANNOUNCEMENT



KALEV ACQUIRED OVER 80% HOLDING IN BALTCOM



AS Kalev acquired over 80% holding in Baltcom shares obtaining 

short-term securities for reselling purposes. The price of the 

transaction is app. 500,000 kroons.

Proceeding from the agreement management of Baltcom is obliged

to purchase the shares from Kalev on October 1, 2003, at the latest.



The above transaction is not related with Kalev's main business 

field nor does it hold any strategic value to the company. 

Mr. Oliver Kruuda, the current CEO of AS Kalev, said the aim of 

temporary holding of Baltcom shares is to implement information 

technology solutions developed within the company to Kalev's sales, 

managerial and accounting systems. Mr. Kruuda is of the opinion this 

transaction is profitable to Kalev. "Baltcom has been invested up 

to 10 mln kroons in recent years, whereas Kalev acquired holding 

in Baltcom for half a million kroons," he added. 



Kalev would need up to 10 IT-specialist to provide continuous 

information technology support for its main functions, and for 

development of information technology solutions. "Kalev gains 

significantly more by outsourcing the know-how and devoting to 

its main business field - production of sweets," Kruuda said.



The above transaction shall not be considered as transaction 

with related parties.





Ruth Roht

PR manager

+372 628 3858