TALLINNA KAUBAMAJA ANNOUNCEMENT 08.01.2007 SALES RESULTS FOR YEAR 2006 The consolidated unaudited sales of Tallinna Kaubamaja Group for year 2006 were 4.3 billion kroons (275 million euros). The sales of the comparable period last year were 2.88 billion kroons (184 million euros). The sales increased by 49 per cent. The consolidated unaudited sales of the Group for Quarter 4 were 1.3 billion kroons (83 million euros) that is 34 per cent higher than the sales of the same period last year, when the sales were 966 million kroons (62 million euros). The sales of A-Selver in year 2006 were 2.9 billion kroons (186 million euros), which is 56 per cent more than year before. The sales of Selver for Quarter 4 were 834 million kroons (53 million euros); it has grown 38 per cent to comparable period last year. Estimably Selver had 13.3% of non-specialty stores (mostly groceries) retail sales, increasing during the year 3.5 per cent. The sales in department stores business segment of year 2006 were 1.3 billion kroons (83 million euros), increased by 31 per cent over the same period last year. The sales of department store of Quarter 4 were 437 million kroons (28 million euros), which is 31% per cent more than last year. The sales were influenced by customers buying power, which were supported by economic growth and earnings growth. The sales in real estate business segment in year 2006 were 111 million kroons (7 million euros), increasing four times to comparable period last year. The sales of Quarter 4 in real estate business segment were 29 million kroons (2 million euros. The average monthly sales per square meter of sales area in year 2006 were 5.8 thousand kroons per month; this is 23 per cent more than last year. The same figure in Selver chain were 6.4 thousand kroons per month and in department store segment 4.7 thousand kroons per month, the growth were 18 per cent and 21 per cent. Within year 2006 1 421 sq m sales area were added, the total sales area at the end of year 2006 was 62 185 sq m. The number of purchased made in year 2006 in Selver chain amounted 23 million and in department stores amounted 9 million, growing 41 per cent and 32 per cent over the same period last year. The number of loyal customers with Partner card were 288 000, increasing 52% within a year. The keywords for Tallinna Kaubamaja group for year 2007 are: widening of Selver chain in Estonia and Latvia; opening Selver central kitchen; in department store business segment important attention will be brought to make the department stores more efficient and widening car selling and service network and looking for addition car brands to Kia Motors. Also additional developing possibilities were looking forward. Raul Puusepp Chairman of the Board Phone: +372 731 5000