AS Kalev                  Stock Exchange Release              4.11.2005



Commencement of criminal proceedings



On 25.10.2005, AS Kalev learned through the press that the Public Prosecutor’s 

Office has initiated criminal proceedings to investigate potential damages 

caused by AS Kalev and its subsidiary AS Kalev Real Estate Company to AS Kalev’s 

minority shareholders through real estate transactions.



On 26.10.2005, AS Kalev contacted the Public Prosecutor’s Office and 

the Security Police Board to ask whether the information published in the 

press on the commencement of criminal proceedings was correct, and, if so, 

what were the grounds for these proceedings, and with respect to whom had 

they been initiated.



Pursuant to the response received from the Security Police Board on 

2 November 2005 and from the Public Prosecutor’s Office on 31 October 2005, 

the public prosecutor initiated criminal proceedings on 24 October 2005 on 

the basis of charges brought by Investors Association and AS Kalev’s minority 

shareholders on 19 October 2005 under Section 289 to the Penal Code. Pursuant 

to the charges, the leaders of AS Kalev Real Estate Company and AS Kalev had 

allegedly taken advantage of their official position, selling real estate 

below its market price, thus causing significant material damages to the 

shareholders. The Security Police Board reported that the above criminal 

case had been accepted by the Security Police Board.



AS Kalev maintains its position that the transactions related to the real 

estate located at Pärnu mnt 139 in Tallinn and in the Keila-Joa recreational 

area were concluded by the company and its subsidiary in accordance with the 

law, and under conditions which do not damage the interests of AS Kalev or 

its minority shareholders.



Ruth Roht

PR manager

+372 6 077 858