BOND ISSUE

On 18 September, AS Kalev Real Estate Company will issue, by placing, a total of
2.983 million euros in bonds with a term of 2 years. On 1 October, the volume   
will be increased by 958 thousand euros.                                        

The nominal value of the bond is 1,000 euros. The annual coupon rate is 12%,    
with coupon payments to be made on a quarterly basis. On each coupon date, the  
bonds may be recalled by the issuer, or redeemed by investors.                  

Fulfilment of the obligations arising from the bonds will be guaranteed by AS   
Kalev.                                                                          

The bond issue will be organised by SEB Eesti Ühispank.

Tarmo Maasikamäe
Financial director
Tel 6161903