During the first half of the 2006/2007 financial year the revenues of AS Tallink Grupp increased by 205% compared to the same period of previous financial year. The Group's EBITDA increased nearly 209% and reached 789 million EEK (50 million EUR). Mr. Enn Pant, CEO of AS Tallink Grupp said: “We are pleased that the weakest season which is typical to our business is over and that the company has retained the profitability in the first half of the financial year. The Silja integration has been sucessful giving us confidence in meeting our targets on the coming high season.” Despite the additional restructuring costs and the fact that many of the operational changes and vessels' dockings were done during the second quarter we have maintained the operational profitability for the first half-year. The EBITDA margin for the first half-year period is holding at 14.5%, a percentage point higher than last year. Excluding the integration related 77 millon EEK (5 million EUR) non recurring costs the EBITDA margin would be 15.9% indicating that the performance of the Group during the first half-year has improved. Similarly to the first quarter the primary focus has also in second quarter been on the integration of Silja and Tallink, on the related changes in the organisation and launching of actions generating positive synergies. The improvements of the acquired Silja operations have been noticeable and the integration process has been successful. The Silja EBITDA has improved approximately by 140 million EEK (9 million EUR) during the first half-year of 2006/2007 financial year compared to the 2005/2006 pro-forma results. 1st HALF-YEAR KEY FIGURES 01.09.2006- 01.09.2005- change % 28.02.2007 28.02.2006 EEK EUR EEK EUR Net sales (million) 5,448.8 348.2 1,786.0 114.1 205.1 EBITDA (million) 789.1 50.4 255.7 16.3 208.6 EBITDA margin (%) 14.5 14.3 14.3 Net profit for the 2.6 0.2 55.2 3.5 -95.3 period (million) Net profit margin (%) 0.0 0.0 3.1 3.1 Depreciation (million) 509.1 32.5 138.5 8.9 267.6 Investments (million) 413.6 26.4 237.8 15.2 74.0 Weighted average number 673,817,040 488,607,736 37.9 of ordinary shares outstanding during 1st half-year* Earnings per share 0.00 0.00 0.11 0.01 -96.5 Number of passengers 2,978,815 1,336,872 122.8 Cargo units 175,935 70,044 151.2 Average number of 5,970 2,632 126.8 employees 28.02.2007 31.08.2006 change % EEK EUR EEK EUR Total assets (million) 25,230.0 1,612.5 25,931.6 1,657.3 -2.7 Total liabilities 15,808.0 1,010.3 16,856.3 1,077.3 -6.2 (million) Interest-bearing 14,366.9 918.2 14,955.6 955.8 -3.9 liabilities (million) Total equity (million) 9,082.9 580.5 9,075.3 580.0 0.1 Equity ratio (%) 36.0 35.0 Number of ordinary 673,817,040 546,000,000 23.4 shares outstanding* Shareholders equity per 13.48 0.86 16.62 1.06 -18.9 share Net profit margin - Net profit / Net sales; EBITDA - Earnings before net financial items, share of profit of associates, taxes, depreciation and amortization, income from negative goodwill; EBITDA margin - EBITDA / Net sales; Equity ratio - Total Equity / Total Assets; Earnings per share - Net Profit / Weighted average number of shares outstanding; Shareholder's equity per share - Shareholder's equity / Number of shares outstanding. * share numbers adjusted in connection with the bonus issue in January 2007. SALES AND EARNINGS Net sales of AS Tallink Grupp and its subsidiaries amounted to 5,448.8 million EEK (348.2 million EUR) in the first half of 2006/2007 financial year (September 01, 2006 - February 28, 2007) compared to 1,786.0 million EEK (114.1 million EUR) with the first half of 2005/2006 financial year (September 01, 2005 - February 28, 2006). The 3,662.8 million EEK (234.1 million EUR) or 205.1% increase in sales in the first half resulted largely from the investments made during the previous financial year, but also from the increased number of passengers on Estonia-Finland and Estonia-Sweden routes and increased revenues per passenger. During the first half of 2006/2007 financial year the Group's EBITDA increased by 208.6% to 789.1 million EEK (50.4 million EUR). The net profit decreased by 95.3% from 55.2 million EEK (3.5 million EUR) to 2.6 million EEK (0.2 million EUR). The second quarter performance was largely influenced from many of the operational factors such as vessels' dry-dockings and fleet changes on the routes. During the first half the Group's earnings were negatively affected by several non-recurring integration costs in the total amount of 78 million EEK (5 million EUR) which are mainly related to the redundancies at our Finnish and Swedish shore organisation. It is estimated that these non-recurring redundancy costs will lead to approximately 147 million EEK (9.4 million EUR) yearly savings on overhead costs. In addition to the identified integration costs approximately 15.6 million EEK (1 million EUR) of indirect non- recurring costs are related to the restructuring and integration of our Finnish and Swedish shore operations. The outlook for Q3 and Q4 is promising. The fleet changes that were made during the Q2 and the delivery of new vessel Star are showing positive operational performance. CONSOLIDATED CONDENSED INCOME STATEMENT (unaudited, in 01.12.2006- 01.12.2005- 01.09.2006- 01.09.2005- thousands of EEK) 28.02.2007 28.02.2006 28.02.2007 28.02.2006 Net sales 2,471,915 793,969 5,448,778 1,786,023 Cost of sales -2,041,164 -690,905 -4,294,028 -1,440,492 Gross profit 430,751 103,064 1,154,750 345,531 Marketing expenses -167,747 -56,940 -403,688 -160,433 Administrative and -249,683 -30,123 -479,239 -68,336 general expenses Other operating items 823 555 8,250 441 Income from negative 0 0 689 0 goodwill Financial income 66,409 9,878 91,045 10,747 Financial expenses -190,841 -34,136 -367,549 -72,145 Profit from normal -110,288 -7,702 4,258 55,805 operation before income tax Income tax -1,708 299 -1,653 -588 Net profit for the -111,996 -7,403 2,605 55,217 period Attributable to: Equity holders of the -111,996 -7,601 2,605 54,598 parent Minority interests 0 198 0 619 Earnings per share (in EEK per share) - basic 0.00 0.11 - diluted 0.00 0.11 (unaudited, in thousands 01.12.2006- 01.12.2005- 01.09.2006- 01.09.2005- of EUR) 28.02.2007 28.02.2006 28.02.2007 28.02.2006 Net sales 157,984 50,744 348,240 114,148 Cost of sales -130,454 -44,157 -274,438 -92,064 Gross profit 27,530 6,587 73,802 22,084 Marketing expenses -10,721 -3,640 -25,800 -10,254 Administrative and general -15,958 -1,925 -30,629 -4,367 expenses Other operating items 53 36 527 28 Income from negative 0 0 44 0 goodwill Financial income 4,244 632 5,819 687 Financial expenses -12,197 -2,182 -23,491 -4,611 Profit from normal -7,049 -492 272 3,567 operation before income tax Income tax -109 19 -106 -38 Net profit for the period -7,158 -473 166 3,529 Attributable to: Equity holders of the -7,158 -485 166 3,490 parent Minority interests 0 12 0 39 Earnings per share (in EUR per share) - basic 0.00 0.01 - diluted 0.00 0.01 CONSOLIDATED CONDENSED BALANCE SHEET (unaudited, in thousands of EEK) ASSETS 28.02.2007 31.08.2006 Current assets Cash and cash equivalents 579,919 1,407,608 Receivables 732,867 843,456 Prepayments 210,134 235,890 Derivatives 51,468 11,633 Tax assets 11,138 17,644 Inventories 226,198 237,228 Total current assets 1,811,724 2,753,459 Non-current assets Investments in associates 9,044 9,044 Other financial assets and 8,313 8,240 prepayments Pension assets 45,234 45,234 Property, plant and equipment 21,746,360 21,857,153 Intangible assets 1,270,261 1,258,432 Total non-current assets 23,079,212 23,178,103 TOTAL ASSETS 24,890,936 25,931,562 LIABILITIES AND EQUITY Current liabilities Current portion of interest-bearing 1,865,026 1,228,098 liabilities Payables 1,183,921 1,593,026 Deferred income 110,672 146,042 Derivatives 12,954 24,159 Tax liabilities 104,209 112,061 Total current liabilities 3,276,782 3,103,386 Non-current liabilities Interest bearing loans and borrowings 12,501,878 13,727,497 Deferred income tax liability 1,595 69 Pension liability 27,773 25,332 Total non-current liabilities 12,531,246 13,752,898 TOTAL LIABILITIES 15,808,028 16,856,284 EQUITY Minority interests 0 1,189 Equity attributable to equity holders of the parent Share capital 6,738,170 1,415,000 Share premium 9,999 2,012,394 Unregistered share capital with share 0 1,475,727 premium Reserves 1,239,139 1,158,714 Retained earnings 1,095,600 3,012,254 Total equity attributable to equity 9,082,908 9,074,089 holders of the parent TOTAL EQUITY 9,082,908 9,075,278 TOTAL LIABILITIES AND EQUITY 24,890,936 25,931,562 CONSOLIDATED CONDENSED BALANCE SHEET (unaudited, in thousands of EUR) ASSETS 28.02.2007 31.08.2006 Current assets Cash and cash equivalents 37,064 89,963 Receivables 46,839 53,906 Prepayments 13,430 15,076 Derivatives 3,289 743 Tax assets 712 1,128 Inventories 14,457 15,162 Total current assets 115,791 175,978 Non-current assets Investments in associates 578 578 Other financial assets and 531 527 prepayments Pension assets 2,891 2,891 Property, plant and equipment 1,389,846 1,396,927 Intangible assets 81,184 80,428 Total non-current assets 1,475,030 1,481,351 TOTAL ASSETS 1,590,821 1,657,329 LIABILITIES AND EQUITY Current liabilities Current portion of interest-bearing 119,197 78,490 liabilities Payables 75,666 101,813 Deferred income 7,073 9,334 Derivatives 828 1,544 Tax liabilities 6,660 7,162 Total current liabilities 209,424 198,343 Non-current liabilities Interest bearing loans and borrowings 799,016 877,347 Deferred income tax 102 4 Pension liability 1,775 1,619 Total non-current liabilities 800,893 878,970 TOTAL LIABILITIES 1,010,317 1,077,313 EQUITY Minority interests 0 76 Equity attributable to equity holders of the parent Share capital 430,648 90,435 Share premium 639 128,615 Unregistered share capital with share 0 94,316 premium Reserves 79,195 74,056 Retained earnings 70,022 192,518 Total equity attributable to equity 580,504 579,940 holders of the parent TOTAL EQUITY 580,504 580,016 TOTAL LIABILITIES AND EQUITY 1,590,821 1,657,329 Janek Stalmeister Financial Director AS Tallink Grupp Tel. +372 6409 800 Email: janek.stalmeister@tallink.ee