THE EXPANSION PLAN OF A-SELVER IN LATVIA


TALLINNA KAUBAMAJA                ANNOUNCEMENT                     08.01.2007

THE EXPANSION PLAN OF A-SELVER IN LATVIA

At the end of the year 2009 A-Selver AS, 100%  subsidiary  of  Tallinna  Kaubamaja
AS, plans to open at least 15 Selver stores and central  kitchen  in  Latvia.  The
central kitchen will supply all the Selver stores in Latvia.  The  projection  and
constructional works of the store buildings will be started in  current  year  and
in years 2008-2009 the Selver stores will be opened to  customers.  Selver  Latvia
SIA, 100% subsidiary of A-Selver  AS,  will  be  responsible  for  developing  and
operating the supermarkets of Selver chain.

According to the initial plans, Selver  will  bring  two  types  of  Selver  store
formats in to the Latvian retail  market:  supermarkets  and  hypermarkets.  First
Selver stores will be constructed on the  properties  of  TKM  Latvija  SIA,  100%
subsidiary of Tallinna Kaubamaja Kinnisvara AS.  The  properties  were  previously
owned by Lidl Latvia SIA and are located  in  Cecis,  Jelgava,  Jurmala,  Liepaja,
Rezekne, Riga, Salaspils and Tukums. New expansion opportunities of  Selver  chain
are also looked for in other big cities  of  Latvia  like  Daugavpils,  Ventspils,
Jekabpils and Ogre. Selver will continue to look for additional locations in  Riga
as well.


Raul Puusepp
The Chairman of Board
Phone: +372 7 315 000