AS Tallink Grupp and its subsidiaries (hereinafter also referred to as “the Group”) first full financial year with the previous financial year's big investments on board has ended with the strong and healthy result which assures that the business of the significantly grown company is sound and effective. During the last twelve month period the Group revenues increased by 88% to 11,903 million EEK (761 million EUR). Excluding the non-recurring costs the Group's EBITDA increased by 87% to 2,738 million EEK (175 million EUR). The Group transported 6.9 million passengers, 63.5% more than in the year before. In the fourth quarter the Group's EBITDA increased by 33% to 1,302 million EEK (83 million EUR). The EBITDA margin increased from 29.8% to 36.7% in the fourth quarter of 2006/2007 financial year. AS Tallink Grupp CEO Mr. Enn Pant is pleased with the result: “I am very satisfied that finally in October 2007 we have launched probably world's most sophisticated booking and check-in system on the modern IT platform. The new system connects all our offices in six countries, hundreds of travel agencies across the Scandinavia and Europe and includes the advanced internet booking module. This new system was developed by Silja already for many years and was originally due for launch in autumn 2006, but since it didn't meet our needs the system's further development continued during the past year. I believe that together with the transition and unification of the many supporting IT systems we can report the end of Silja integration process by the end of 2007. During the new 2007/2008 financial year we will continue with the restructuring of the operations to maximize the company's profitability. First steps have already been made towards the change of vessels on the Turku- Stockholm route. Given the fact that during the first full year after the acquisition of Silja the positive impact of synergies is hardly seen yet and expecting the positive result from the operations restructuring the following years will have great upside potential.” 12 MONTHS KEY FIGURES 01.09.2006- 01.09.2005- change % 31.08.2007 31.08.2006 EEK EUR EEK EUR Net sales (million) 11,903.3 760.8 6,330.9 404.6 88.0% EBITDA excluding non-recurring 2,737.7 175,0 1,466.2 93.7 86.7% costs (million) Net Profit excluding non- 1,299.6 83.1 774.8 49.5 91.7% recurring costs & negative goodwill (million) Non-recurring integration 250.3 16.0 costs (million) EBITDA (million) 2,487.3 159.0 1,466.2 93.7 69.6% Net profit for the period 1,049.3 67.1 1,485.3 94.9 -29.4% (million) EBITDA margin (%) 20.9% 23.2% Net profit margin (%) 8.8% 23.5% Depreciation (million) 925.5 59.1 419.7 26.8 120.5% Investments (million) 2,203.5 140.8 16,259.0 1,039.1 -86.4% Weighted average number of 673,817,040 521,527,764 29.2 ordinary shares outstanding during 12 months* Earnings per share 1.56 0.100 2.85 0.182 -45.3% Number of passengers 6,873,339 4,203,163 63.5% Cargo units 359,781 188,330 91.0% Average number of employees 6,227 3,463 79.8% 31.08.2007 31.08.2006 change% Total assets (million) 26,570.9 1,698.2 25,931.6 1,657.3 2.5% Total liabilities (million) 16,436.0 1,050.4 16,856.3 1,077.3 -2.5% Interest-bearing liabilities 14,831.7 947.9 14,955.6 955.8 -0.8% (million) Total equity (million) 10,134.9 647.7 9,075.3 580.0 11.7% Equity ratio (%) 38.1% 35.0% Number of ordinary shares 673,817,040 673,817,040 0.0 outstanding* Shareholders' equity per 15.04 0.96 13.47 0.86 11.7% 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; Shareholders' equity per share - Shareholder's equity / Number of shares outstanding; * share numbers have been adjusted in connection with the share bonus issue in January 2007 SALES AND EARNINGS Net sales of the Group amounted to 11,903.3 million EEK (760.8 million EUR) in the 12 months of 2006/2007 financial year (September 01, 2006 - August 31, 2007) compared to 6,330.9 million EEK (404.6 million EUR) with the 12 months of 2005/2006 financial year (September 01, 2005 - August 31, 2006). The increase in sales is largely the effect of the 2006 year investments: Silja Line, Superfast vessels, Galaxy cruise ferry and new Riga-Stockholm route. The passenger related revenues per passenger have increased 17% which is a positive impact from the recent investments. During the 12 months of 2006/2007 financial year the Group's EBITDA increased by 69.6% to 2,487.3 million EEK (159.0 million EUR). The net profit decreased by 29.4% from 1,485.3 million EEK (94.9 million EUR) to 1,049.3 million EEK (67.1 million EUR). Basic earnings per share and diluted earnings per share were 1.56 EEK (0.10 EUR) in the 12 months of 2006/2007 financial year, a decrease of 45.3% compared to 2.85 EEK (0.182 EUR) in the corresponding period in 2005/2006 financial year. Excluding negative goodwill and non recurring costs the effective comparable net profit increased 91.7% to 1,299.6 million EEK (83.1 million EUR) and the earnings per share on the same basis rose 30.0% to 1.93 EEK (0.12 EUR). During the last 12 months the Group's earnings were decreased by several non- recurring Silja Line integration and restructuring related costs in the total amount of 250 million EEK (16 million EUR) causing the high numbers in the marketing and administrative costs. The start-up costs in third quarter arising from the launch of new vessel Star, the launch of new Tallink Spa & Conference hotel and the extension of the stevedoring activities in Finland, have had an impact to the Group's result as well. Influential to the Group's earnings, especially in the fourth quarter, were rapidly increasing interest rates and from the operational side fuel price higher than expected. We believe that the Bronze Soldier incidents and related disorders in Tallinn in the end of April had negative impact to the passenger volumes on our routes in May and June and therefore also negatively impacted the Group's earnings. Despite the increased costs on the overheads and also in the operations the Group's EBITDA in the fourth quarter increased by 33.1% to 1,302.1 million EEK (83.2 million EUR) which is 323.5 million EEK (20.7 million EUR) more than in the last year's fourth quarter. The Group's EBITDA margin in the fourth quarter was 36.7% compared to 29.8% a year earlier. CONSOLIDATED CONDENSED INCOME STATEMENT (unaudited, in thousands of EEK) 01.06.07- 01.06.06- 01.09.06- 01.09.05- 31.08.07 31.08.06 31.08.07 31.08.06 Net sales 3,552,013 3,281,601 11,903,286 6,330,911 Cost of sales -2,254,045 -2,073,429 -8,766,651 -4,498,940 Gross profit 1,297,968 1,208,172 3,136,635 1,831,971 Marketing expenses -147,165 -189,591 -792,381 -454,520 Administrative and general -243,196 -220,317 -997,361 -329,798 expenses Other operating items 179,794 -7,559 207,265 -1,128 Income from negative goodwill 0 710,496 689 710,496 Financial income 56,718 25,887 203,884 44,854 Financial expenses -222,942 -173,854 -801,219 -316,571 Income from associates 1,205 0 7,698 0 Profit from normal operation 922,382 1,353,234 965,210 1,485,304 before income tax Income tax 85,525 342 84,077 -33 Net profit for the period 1,007,907 1,353,576 1,049,287 1,485,271 Attributable to: Equity holders of the parent 1,007,907 1,353,416 1,049,287 1,484,206 Minority interests 0 160 0 1,065 Earnings per share (in EEK per share) - basic 1.56 2.85 - diluted 1.56 2.85 CONSOLIDATED CONDENSED INCOME STATEMENT (unaudited, in thousands of EUR) 01.06.07- 01.06.06- 01.09.06- 01.09.05 - 31.08.07 31.08.06 31.08.07 31.08.06 Net sales 227,015 209,733 760,759 404,619 Cost of sales -144,060 -132,517 -560,291 -287,535 Gross profit 82,955 77,216 200,468 117,084 Marketing expenses -9,406 -12,117 -50,643 -29,049 Administrative and general expenses -15,543 -14,081 -63,743 -21,078 Other operating items 11,490 -483 13,246 -72 Income from negative goodwill 0 45,409 44 45,409 Financial income 3,625 1,655 13,031 2,867 Financial expenses -14,248 -11,112 -51,207 -20,233 Income from associates 77 0 492 0 Profit from normal operation before 58,950 86,487 61,688 94,928 income tax Income tax 5,467 22 5,374 -2 Net profit for the period 64,417 86,509 67,062 94,926 Attributable to: Equity holders of the parent 64,417 86,499 67,062 94,858 Minority interests 0 10 0 68 Earnings per share (in EUR per share) - basic 0.10 0.18 - diluted 0.10 0.18 CONSOLIDATED CONDENSED BALANCE SHEET (unaudited, in thousands of EEK) ASSETS 31.08.2007 31.08.2006 Current assets Cash and cash equivalents 1,303,609 1,407,608 Receivables 815,093 843,456 Prepayments 106,144 235,890 Derivatives 1,799 11,633 Tax assets 17,990 17,644 Inventories 272,352 237,228 Total current assets 2,516,987 2,753,459 Non-current assets Investments in associates 3,242 9,044 Other financial assets and prepayments 9,279 8,240 Deferred tax assets 153,102 0 Pension assets 0 45,234 Investment property 4,694 0 Property, plant and equipment 22,600,001 21,857,153 Intangible assets 1,283,592 1,258,432 Total non-current assets 24,053,910 23,178,103 TOTAL ASSETS 26,570,897 25,931,562 LIABILITIES AND EQUITY Current liabilities Current portion of interest-bearing liabilities 2,247,390 1,228,098 Payables 1,287,671 1,593,026 Deferred income 121,008 146,042 Derivatives 7,980 24,159 Tax liabilities 120,698 112,061 Total current liabilities 3,784,747 3,103,386 Non-current liabilities Interest bearing loans and borrowings 12,584,261 13,727,497 Deferred income tax liability 63,463 69 Pension liability 3,489 25,332 Total non-current liabilities 12,651,213 13,752,898 TOTAL LIABILITIES 16,435,960 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 premium 0 1,475,727 Reserves 1,202,991 1,158,714 Retained earnings 2,183,777 3,012,254 Total equity attributable to equity holders of the 10,134,937 9,074,089 parent TOTAL EQUITY 10,134,937 9,075,278 TOTAL LIABILITIES AND EQUITY 26,570,897 25,931,562 CONSOLIDATED CONDENSED BALANCE SHEET (unaudited, in thousands of EUR) ASSETS 31.08.2007 31.08.2006 Current assets Cash and cash equivalents 83,315 89,963 Receivables 52,094 53,906 Prepayments 6,784 15,076 Derivatives 115 743 Tax assets 1,150 1,128 Inventories 17,407 15,162 Total current assets 160,865 175,978 Non-current assets Investments in associates 207 578 Other financial assets and prepayments 594 527 Deferred tax assets 9,785 0 Pension assets 0 2,891 Investment properties 300 0 Property, plant and equipment 1,444,403 1,396,927 Intangible assets 82,036 80,428 Total non-current assets 1,537,325 1,481,351 TOTAL ASSETS 1,698,190 1,657,329 LIABILITIES AND EQUITY Current liabilities Current portion of interest-bearing liabilities 143,634 78,490 Payables 82,297 101,813 Deferred income 7,734 9,334 Derivatives 510 1,544 Tax liabilities 7,714 7,162 Total current liabilities 241,889 198,343 Non-current liabilities Interest bearing loans and borrowings 804,281 877,347 Deferred income tax 4,056 4 Pension liability 223 1,619 Total non-current liabilities 808,560 878,970 TOTAL LIABILITIES 1,050,449 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 premium 0 94,316 Reserves 76,885 74,056 Retained earnings 139,569 192,518 Total equity attributable to equity holders of the 647,741 579,940 parent TOTAL EQUITY 647,741 580,016 TOTAL LIABILITIES AND EQUITY 1,698,190 1,657,329 CONSOLIDATED CONDENSED CASH FLOW STATEMENT (unaudited, in thousands of EEK) 01.09.2006- 01.09.2005- 31.08.2007 31.08.2006 Cash flows from operating activities Net profit for the period 1,049,287 1,485,271 Adjustments 1,252,817 -17,689 Changes in assets related to operating activities 203,468 -276,382 Changes in inventories -34,964 -46,495 Changes in liabilities related to operating -346,867 91,081 activities Income tax repaid -4,083 -791 2,119,658 1,234,995 Cash flow used for investing activities Purchase of property, plant, equipment and intangible -2,201,608 -7,824,715 assets Proceeds from disposals of property, plant, equipment 687,540 181,619 Proceeds from disposals of associates 15,162 5,000 Acquisition of subsidiaries -1,157 -969,511 Acquisition of associates -1,020 0 Interest received 186,117 23,007 -1,314,966 -8,584,600 Cash flow from (+)/ used for (-) financing activities Issue of shares 0 3,668,735 Transaction costs of issue of shares -6,520 -132,891 Proceeds from loans and bonds 1,357,847 12,609,227 Redemption of loans and bonds -1,555,385 -7,473,544 Change in overdraft 74,143 -18,249 Repayment of finance lease liabilities -27,010 -5,073 Interest paid -751,766 -217,778 -908,691 8,430,427 TOTAL NET CASH FLOW -103,999 1,080,822 Cash and cash equivalents: - at the beginning of period 1,407,608 326,786 - increase (+) / decrease (-) -103,999 1,080,822 Cash and cash equivalents at end of period 1,303,609 1,407,608 CONSOLIDATED CONDENSED CASH FLOW STATEMENT (unaudited, in thousands of EUR) 01.09.2006- 01.09.2005- 31.08.2007 31.08.2006 Cash flows from operating activities Net profit for the period 67,062 94,926 Adjustments 80,070 -1,131 Changes in assets related to operating activities 13,004 -17,664 Changes in inventories -2,235 -2,971 Changes in liabilities related to operating activities -22,169 5,821 Income tax repaid -261 -50 135,471 78,931 Cash flow used for investing activities Purchase of property, plant, equipment and intangible -140,708 -500,090 assets Proceeds from disposals of property, plant, equipment 43,942 11,607 Proceeds from disposals of associates 969 320 Acquisition of subsidiaries -74 -61,963 Acquisition of associates -65 0 Interest received 11,895 1,470 -84,041 -548,656 Cash flow from (+)/ used for (-) financing activities Issue of shares 0 234,475 Transaction costs of issue of shares -417 -8,493 Proceeds from loans and bonds 86,782 805,876 Redemption of loans and bonds -99,407 -477,647 Change in overdraft 4,739 -1,166 Repayment of finance lease liabilities -1,727 -324 Interest paid -48,047 -13,918 -58,077 538,803 TOTAL NET CASH FLOW -6,647 69,078 Cash and cash equivalents: - at the beginning of period 89,963 20,885 - increase (+) / decrease (-) -6,647 69,078 Cash and cash equivalents at end of period 83,316 89,963 AS Tallink Grupp will publish the Audited Annual Report for the 2006/2007 financial year in November 2007. Janek Stalmeister Financial Director AS Tallink Grupp e-mail: janek.stalmeister@tallink.ee Tel. +372 6409 800