CORRECTION NOTICE: Unaudited interim report for the 12-month period


Corrections to the fourth quarter income statement (in EEK and EUR) in the
correction notice and in the full version of the corrected report in the
columns '2008 4th quarter,continued operations' and '2008 4th quarter,
total' in the following rows Revenue, Gross profit, Other income and expenses,
Operating profit, Profit before income tax, Profit before minority interest,
Profit 
for the period. 

Interim financial statements for the period 01.07.2007-30.06.2008

1. COMMENTS ON ECONOMIC ACTIVITIES                                              

1.1. General information and changes in organisational structure                

AS Kalev pursues several fields of activity, including manufacturing and sale of
foodstuffs, media, real-estate-related activities, publishing and printing      
activities. The company has long-term experience in the chocolate, sugar and    
flour confectionery product segment as well as the pastry and dairy product     
segment. AS Kalev has also pursued various real estate development and          
management projects for a longer period of time. Last financial year, AS Kalev  
expanded its activities into media, publishing, printing and the related areas. 
The company has shown powerful development in these areas in the financial year 
with respect to both the extent and content. Among other things, the company    
launched a new TV programme. Foodstuff production is divided into five          
production plants, located in Põrguvälja (in Rae Municipality, Harju County),   
Paide, Viljandi, Jõhvi and Kiviõli. Kalev's products are sold, among other      
channels, through the pan-Estonian retail chain which consists of 15 candy      
stores and cafes.                                                               

Kalev Group's parent company is AS Kalev. In addition, the group incorporates   
twenty subsidiaries. AS Uniprint is considered a subsidiary since, under the    
shareholders' agreement, AS Kalev has the obligation to purchase the company's  
shares at the latest in April 2009. A structural change was introduced in the   
first quarter of the financial year 2007/2008 ― under the contract concluded on 
17 August 2007, AS Kalev acquired a stake in the private limited company Soltari
Invest with a nominal value of 40,000 kroons. With the transaction, AS Kalev    
became the sole shareholder of the private limited company which was renamed    
into AgriStock OÜ. The subsidiary is involved with the development of the       
processing of, storage of and reloading of grain products. The above acquisition
does not constitute a related party transaction in the meaning of the stock     
exchange rules.                                                                 

AS Kalev has a significant interest in the following companies:                 
                                                                                
--------------------------------------------------------------------------------
| Name of subsidiary                  | Locatio | As of        | As of         |
|                                     | n       | 30.06.2008   | 30.06.2007    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AS Kalev Paide Tootmine             | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
|   | AS Valmetek Invest              | Estonia |        66.7% |         65.6% |
--------------------------------------------------------------------------------
| AS Kalev Jõhvi Tootmine*            | Estonia |        99.1% |         99.1% |
--------------------------------------------------------------------------------
| AS Vilma*                           | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
| AS Kalev Real Estate Company (AS    | Estonia |         100% |          100% |
| Kalev REC)                          |         |              |               |
--------------------------------------------------------------------------------
|   | EOOD Stude REC                  | Bulgaria|         100% |          100% |
--------------------------------------------------------------------------------
|   | OÜ BCA Center                   | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
|   | OÜ BCA Kinnisvara               | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
| AS Kalev Chocolate Factory*         | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
|   | OÜ Maiasmokk*                   | Estonia |        86.4% |         81.3% |
--------------------------------------------------------------------------------
| AS Kalev Merchant Services Ltd      | USA     |         100% |          100% |
--------------------------------------------------------------------------------
| OÜ Sugarstar                        | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
| AS Inreko Press                     | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
| OÜ Olliwood                         | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
| AS Eksklusiiv                       | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
| AS Kalev Meedia                     | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
|   | OÜ Eesti Spordikanal            | Estonia |         100% |          100% |
--------------------------------------------------------------------------------
| AS Uniprint                         | Estonia |           0% |           40% |
--------------------------------------------------------------------------------
                                                                                
* Discontinued operations of AS Kalev Group                                     

The members of the Management Board of AS Kalev are elected and removed pursuant
to the procedure provided by the Commercial Code. Under the Commercial Code, the
members of the Management Board and appointed and removed by the Supervisory    
Board of AS Kalev. A member of the Management Board shall be elected for a      
specified term of three years unless the Articles of Association prescribe      
another term. Extension of the term of office of a member of the Management     
Board shall not be decided earlier than one year before the planned date of     
expiry of the term of office, and not for a period longer than the maximum term 
of office prescribed by the law or the Articles of Association                  

A member of the Management Board may be removed upon a resolution of the        
Supervisory Board of AS Kalev regardless of the reason. Rights and obligations  
arising from a contract concluded with the member of the Management Board shall 
terminate pursuant to the contract. A member of the Management Board may resign 
from the Management Board with good reason if he or she gives notice of his or  
her resignation to the Supervisory Board and, if this is impossible, submits a  
relevant application to the registrar of the commercial register. With good     
reason, a court may appoint a new member to replace a removed member of the     
Management Board on the petition of the Supervisory Board, a shareholder or     
other interested person. The authority of the court-appointed member of the     
Management Board shall continue until appointment of a new member of the        
Management Board by the Supervisory Board. The members of the Management Board  
of AS Kalev shall be appointed for a term of three years in accordance with the 
Articles of Association of AS Kalev. If the Management Board has more than two  
members, the Supervisory Board of AS Kalev shall elect the Chairman of the      
Management Board amongst the members of the Management Board.                   

Pursuant to the Commercial Code, a resolution on amendment of the Articles of   
Association shall be adopted if at least two-thirds of the votes who participate
in the meeting are in favour. A resolution on amendment of the Articles of      
Association shall enter into force as of the making of a corresponding entry in 
the commercial register. The Articles of Association of AS Kalev have not       
prescribed a greater majority requirement. AS Kalev only has one type of shares.

AS Kalev may be represented in all legal acts by any member of the Management   
Board. Under the Articles of Association, if the Management Board of AS Kalev   
has three or more members, the public limited company may be represented in all 
legal acts by the Chairman of the Management Board alone, or other members of   
the Management Board together with the Chairman of the Management Board.        
Pursuant to the Commercial Code, joint representation shall apply with regard to
third persons only if it is entered in the commercial register. The members of  
the Management Board of AS Kalev shall not have the right to issue or repurchase
shares. No agreements have been concluded between AS Kalev and its Management   
Board members or employees, stipulating any monetary compensation in connection 
with the takeover set forth in section 19 of the Securities Market Act.         

At the end of 2007, AS Kalev Chocolate Factory launched the transition to       
product group-based production, starting to manufacture pastry products and     
flour confectionery products in different production plants.  The specialisation
served the goal of enhancing logistical and production efficiency in order to   
ease the strong pressure on cost price increase, and bring the know-how under a 
single production unit. The first stage of this process involved changes in     
biscuit production in the Kiviõli production plant of AS Kalev Jõhvi Tootmine.  
In the second stage, pastry production will be fully transferred to the Jõhvi   
plant, partly by exploiting the labour resources made available with the first  
stage. At the same time, the group's flour confectionery production will be     
transferred to the AS Vilma production plant in Viljandi.                       

In February 2008, Kati Kusmin, who also serves as member of the management      
boards of AS Kalev's subsidiaries AS Kalev Chocolate Factory, AS Kalev Jõhvi    
Tootmine and AS Vilma, was appointed the new managing director of OÜ Maiasmokk. 
In January 2008, AS Kalev transferred its share in the subsidiary OÜ Maiasmokk  
to its other subsidiary AS Kalev Chocolate Factory. The transfer of the share of
OÜ Maiasmokk and appointment of a new managing director has to do with the      
transfer of the food production companies of AS Kalev.                          

The work arrangement in AS Kalev Paide Tootmine has been changed: from April    
2008, the company operates as a contractor on the domestic market. The supply   
and the sales departments of the company were shut down, and the company focused
on its main activity - contracting.                                             

A contract of purchase and sale of shares was concluded on 20 September 2007    
between AS Kalev and Alta Capital Partners S.C.A on the transfer of the shares  
of AS Kalev Chocolate Factory, AS Kalev Jõhvi Tootmine, AS Vilma and OÜ         
Maiasmokk. Since Alta Capital Partners S.C.A failed to pay the purchase price   
for the shares by the established term (30 May 2008), the seller did not        
transfer the shares which formed the object of the contract of purchase and     
sales. AS Kalev considers the contract of purchase and sale as terminated.      
Additional information on the contract has been provided in Note 13.            
1.2. Financial results                                                          

Important factors contributing to the results of AS Kalev Group for the         
financial year 2007/2008:                                                       
1) a near 26% increase in net turnover from goods and services, compared to the 
comparative period (with almost double the revenue generated by continued       
operations and the increase in discontinued operations amounting to 5.2%);      
2) a 19% increase in consolidated gross profit, compared to the comparative     
period (incl. an annual 28.3% increase in gross profit from continued operations
and 15.8% increase in gross profit from discontinued operation);                
3) the share of the domestic market in the total sale of commodities has        
increased―Estonian sales made up nearly 78% of the total sale, with the share of
export decreasing from 36% in the comparative period to 23%;                    
4) as regards continued operations, the revenue from media and event marketing  
has showed significant growth (doubled), although these segments still post a   
loss;                                                                           
5) real estate sales have significantly increased in the group, since the group 
has completed several projects and the focus is shifting from housing and       
commercial premises to the public real estate market. Similarly to last year,   
the real estate segment is among the most profitable segments of the group;     
6) the increase in the sale of discontinued operations (11.5%, compared to the  
comparative period) was supported, above all, by the sugar and confectionery    
market.                                                                         

The consolidated net sales of AS Kalev for the financial year 2007/2008 amounted
to 1 335 million kroons (85.3 million euros), showing a 44.2% growth, compared  
to the same period last financial year. This growth reflects Kalev group's      
pursuit of the objectives established in the previous period. The development   
dynamics differed by segments: as regards discontinued operations, both the     
segment turnover and profitability increased by nearly 11%. As regards continued
operations of Kalev Group, both the real estate sales and media and event       
marketing sales showed a significant growth. The biggest contributors to the    
Group's total turnover for the reporting period included the increase in the    
sale of confectionery and dairy products, as well as printing and media, the new
branches. The consolidated net profit of AS Kalev for the financial year        
2007/2008 amounted to nearly 113 million kroons (7.23 million euros), compared  
to the 30.5 million kroons (1.95 million euros) in the comparative period.      

In the financial year 2007/2008, AS Kalev Group had an average of 1184 employees
(incl. 881 employees in the discontinued operations); in the comparative period 
last financial year, the group had an average of 879 employees (incl. 632       
employees in the discontinued operations).                                      

The net sales and net profit of AS Kalev Group companies for the financial year 
2007/2008 have been brought out in the below tables (in thousands of kroons and 
euros), separately for each company. Comparative data has been brought out on 14
companies. The financial indicators of the subsidiary Kalev Merchant Services   
Ltd have not been consolidated, since the balance sheet volume of the subsidiary
only makes up less than 0.5% of the parent company's turnover. Data on          
subsidiaries is not included, either. The data on AS Kalev Paide Tootmine, AS   
Kalev Real Estate Company, AS Kalev Meedia and AS Uniprint also include the     
corresponding financial results of their subsidiaries.                          

--------------------------------------------------------------------------------
|                     | Net sales   |             | Net profit  |              |
--------------------------------------------------------------------------------
| EEK                 | 2007/2008   | 2006/2007   | 2007/2008   | 2006/2007    |
--------------------------------------------------------------------------------
|                     | 12 months   | 12 months   | 12 months   | 12 months    |
--------------------------------------------------------------------------------
| AS Kalev**          |         433 |      144479 |       75894 |       -62792 |
--------------------------------------------------------------------------------
| AS Kalev Chocolate  |      527083 |      452182 |        6890 |        23614 |
| Factory             |             |             |             |              |
--------------------------------------------------------------------------------
| AS Kalev Paide      |      262337 |      315726 |       20073 |        29407 |
| Tootmine*           |             |             |             |              |
--------------------------------------------------------------------------------
| AS Kalev REC*       |      405107 |       87518 |       67418 |        79373 |
--------------------------------------------------------------------------------
| AS Kalev Jõhvi      |       45025 |       40575 |       -3381 |        -3877 |
| Tootmine            |             |             |             |              |
--------------------------------------------------------------------------------
| OÜ Maiasmokk        |        7866 |        7121 |         258 |         -916 |
--------------------------------------------------------------------------------
| AS Vilma            |       32937 |       29503 |         189 |        -1316 |
--------------------------------------------------------------------------------
| OÜ Sugarstar        |        5934 |        3613 |       -2343 |        -1065 |
--------------------------------------------------------------------------------
| AS Inreko Press***  |           0 |        3853 |        -335 |         -288 |
--------------------------------------------------------------------------------
| OÜ Olliwood***      |           0 |        4911 |        -668 |        -1852 |
--------------------------------------------------------------------------------
| OÜ Eksklusiiv       |        3666 |        1350 |       -1702 |        -1305 |
--------------------------------------------------------------------------------
| AS Kalev Meedia*    |       17707 |        1431 |      -58016 |          558 |
--------------------------------------------------------------------------------
| AS Uniprint*        |      116941 |       54755 |        1480 |         2294 |
--------------------------------------------------------------------------------
| OÜ Agristock        |       25062 |           0 |      -12698 |            0 |
--------------------------------------------------------------------------------

 * consolidated                                                                 
** calculated change in turnover, as a result of which production activities    
previously attributed to AS Kalev have been attributed to AS Kalev Chocolate    
Factory since 01.07.2006, and sale of goods since 01.09.2006.                   
*** the activities of subsidiaries involved in the media segment have been      
attributed to AS Kalev Meedia since 01.06.2007.                                 

--------------------------------------------------------------------------------
|                         | Net sales  |            | Net profit |             |
--------------------------------------------------------------------------------
| EUR                     | 2007/2008  | 2006/2007  | 2007/2008  | 2006/2007   |
--------------------------------------------------------------------------------
|                         | 12 months  | 12 months  | 12 months  | 12 months   |
--------------------------------------------------------------------------------
| AS Kalev**              |         28 |       9234 |       4851 |       -4013 |
--------------------------------------------------------------------------------
| AS Kalev Chocolate      |      33687 |      28900 |        440 |        1509 |
| Factory                 |            |            |            |             |
--------------------------------------------------------------------------------
| AS Kalev Paide          |      16766 |      20179 |       1283 |        1879 |
| Tootmine*               |            |            |            |             |
--------------------------------------------------------------------------------
| AS Kalev REC*           |      25891 |       5593 |       4309 |        5073 |
--------------------------------------------------------------------------------
| AS Kalev Jõhvi Tootmine |       2878 |       2593 |       -216 |        -248 |
--------------------------------------------------------------------------------
| OÜ Maiasmokk            |        503 |        455 |         16 |         -59 |
--------------------------------------------------------------------------------
| AS Vilma                |       2105 |       1886 |         12 |         -84 |
--------------------------------------------------------------------------------
| OÜ Sugarstar            |        379 |        231 |       -150 |         -68 |
--------------------------------------------------------------------------------
| AS Inreko Press***      |          0 |        246 |        -21 |         -18 |
--------------------------------------------------------------------------------
| OÜ Olliwood***          |          0 |        314 |        -43 |        -118 |
--------------------------------------------------------------------------------
| OÜ Eksklusiiv           |        234 |         86 |       -109 |         -83 |
--------------------------------------------------------------------------------
| AS Kalev Meedia*        |       1132 |         91 |      -3708 |          36 |
--------------------------------------------------------------------------------
| AS Uniprint*            |       7474 |       3499 |         95 |         147 |
--------------------------------------------------------------------------------
| OÜ Agristock            |       1602 |          0 |       -812 |           0 |
--------------------------------------------------------------------------------

 * consolidated                                                                 
** calculated change in turnover, as a result of which production activities    
previously attributed to AS Kalev have been attributed to AS Kalev Chocolate    
Factory since 01.07.2006, and sale of goods since 01.09.2006.                   
*** the activities of subsidiaries involved in the media segment have been      
attributed to AS Kalev Meedia since 01.06.2007.                                 

In the financial year, AS Kalev has increased financial gearing in the financing
of the Group's further development, incl. conducting a bonus issue in order to  
refinance the main activity. Increase in current assets also conditioned a rise 
in the current ratio (see table below). Due to the increase in borrowings,      
financial gearing has increased financial expenses. Still, this growth is       
significantly smaller than the increase in the sale of commodities. As regards  
different expense items, the biggest growth (32% compared to last period) can be
seen in the Group's general and administrative expenses. Such a record growth in
expenses can be explained both by macroeconomic indicators and the group's      
strong development in different segments. Thus, the growth in expenses meets    
expectations and has to do with the expansion into the new area. The group's    
profitability has significantly improved, compared to the previous period.      

The most important financial ratios of AS Kalev Group have been brought out in  
the below table:                                                                
--------------------------------------------------------------------------------
|                                | AS Kalev Group                              |
--------------------------------------------------------------------------------
|                                | 01.07.2007-          | 01.07.2006 -         |
|                                | 30.06.2008           | 30.06.2007           |
--------------------------------------------------------------------------------
| Current ratio                  | 1.10                 | 0.61                 |
--------------------------------------------------------------------------------
| Financial gearing              | 0.83                 | 0.80                 |
--------------------------------------------------------------------------------
| Asset turnover ratio           | 0.87                 | 0.79                 |
--------------------------------------------------------------------------------
| Net profit margin (%)          | 8.5%                 | 3.3%                 |
--------------------------------------------------------------------------------
| Return on assets, ROA (%)      | 7.4%                 | 2.6%                 |
--------------------------------------------------------------------------------

* The financial ratios have been calculated based on the following methods:     
Current ratio = current assets / current liabilities                            
Financial gearing = total liabilities / average total assets                    
Asset turnover ratio = revenue / average total assets                           
Net profit margin = net profit / revenue * 100%                                 
Return on assets (ROA) = net profit / average total assets * 100%               

1.3. Product market and sales                                                   

The total sales of AS Kalev's confectionery and dairy products amounted to      
21,988 tons in the financial year 2007/2008 (21,633 tons in the previous        
financial year). This constitutes a 1.6% growth, year-on-year. Still the        
dynamics are different for different fields of activity: In the confectionery   
segment, AS Kalev's sales decreased by 6.8% (the total output for the financial 
tear amounted to 9,312 tons, compared to the 9,990 tons in the previous         
financial year). In the dairy product segment, total sales increased by 8.8% (a 
total of 12,676 tons, compared to the 11,643 tons in the last financial year).  

1.3.1. Confectionery products                                                   

According to the retail trade survey conducted by AC Nielsen in April/May 2008, 
AS Kalev Chocolate Factory is the Estonian market leader in the chocolate and   
sugar confectionery segment: Kalev's market share is nearly 34%, as regards     
turnover, and 36% as regards volume (33% and 39% in the comparative period,     
respectively). In the domestic biscuit market, Kalev Group's market share was   
approximately 9% in the period (on par with last year), with the market share as
regards volume exceeding 11%, ranking Kalev third among manufacturers in the    
segment. According to AC Nielsen, the total sales of AS Kalev rank the company  
second on the Baltic sweets market, with the market share amounting to 12% as   
regards turnover and 14% as regards volume.                                     

As a result of active product development, the company launched a total of 86   
new products in the financial year 2007/2008 8incl. 36 products in the sugar and
chocolate confectionery segment and 50 products in the flour confectionery      
segment). The turnover of new products amounted to 10% of the total turnover in 
the period.                                                                     

Three new flavours were launched in the Kalev brand chocolate series: dark      
chocolate with raspberry (100g), milk chocolate with whole hazelnuts (200g) and 
white chocolate with cranberry and coconut (100g). The Kalev brand 200-gram     
chocolate series saw two new additions ― dark chocolate with raspberry          
(previously marketed in 100g tablets) and milk chocolate with biscuit pieces and
plum. The company also launched a new Kalev Special chocolate series ― white    
chocolate with Indian nuts (50g), milk chocolate with hazelnuts (50g) and milk  
chocolate in three different packages (50g, 100g, 300g).                        

Two new products ― coca flavoured chewing candy and fruit flavoured chewing     
candy ― were introduced in the Draakon chewing candy series. The Kalev Toffee   
series also saw two additions: the Kalev Toffee Cocoa toffee with biscuit pieces
(150g) and Kalev Toffee Mix (475g).  The company also launched a new caramel    
candy - the Kalev Caramel green apple flavoured hard boiled candy with vitamin C
(in 150 g and 2 kg packaging). New candy in the Kalev Praline series included   
the tiramisu-flavoured praline candy, praline candy with almond, praline candy  
with strawberry, plum-flavoured praline candy well as praline candy with coffee 
and caramelised nut. Blackcurrant and plum-flavoured candy (175g) was added to  
the Kalev Marmelade series. The boxed chocolate candy series saw new praline    
candy products - Tallinna Vanalinn (175g), Kannel (350g), Kalev Finest Pralinės 
- selection of praline candy (350g) and the Kalev Finest Pralinės               
tiramisu-flavoured praline candy (85g). In the giftbox series, the company      
launched new dragee products: the tiramisu flavoured cocoa coated almonds,      
cherry in milk chocolate and hazelnut in milk chocolate in Kalev Dragee 130-gram
packages. Three of the most popular products in the Kalev Praline series ― the  
tiramisu flavoured candy, candy with almond and candy with Indian nut ― were    
also launched in 150-gram giftboxes and in a mixed 350-gram package.            

As regards volume, Kalev Group's total sale of sugar and chocolate confectionery
products amounted to 9,312 tons in the financial year 2007/2008. This           
constitutes a 6% decrease from the comparative period.                          

At the same time, the dynamics of the sale of confectionery products was        
different for different product groups: quicker-than-average growth could be    
seen in the sale of chocolate tablets (25%), dragee (21%) and boxed chocolate   
candies (15%); the sale of candy increased by 6% compared to the last financial 
year. The biggest growth (as regards volume), compared to the same period in the
last financial year, could be seen in the sale of chocolate tablets (+22%). The 
same of boxed chocolate candy increased by 15%, while the sale of candy         
decreased by 5%. Christmas sales were a great contributor to the total sale of  
confectionery products:  In the last few months of 2007, AS Kalev Chocolate     
Factory sold a total of over 250 tons of (i.e. nearly 440 thousand) Christmas   
packages of different size and contents. This constitutes a 23% (i.e. over 46   
tons) growth, compared to the same period last financial year. Total Christmas  
sales amounted to 550 tons, with candy packages 45%, chocolate tablets 29%,     
gingerbread cookies 18% and boxed chocolate candy 8%. The Christmas selection   
included 37 products with different thematic designs.                           

In the pastry and flour confectionery group, the company launched a total of 19 
different pastry products under "Linda", "Kalevipoeg" and "Sakala" trademarks in
the financial year 200772008. Kalev launched four new pastries under the "Linda"
trademark: cherry pie (3x55 g), flaky cheese pastry (2x55 g), curd pie (3x60 g) 
and vanilla rolls (3x60 g). The classic "Linda" curd cake (250 g) was added to  
the coffee cake selection. The company also launched a new muffin. A new        
selection (a total of 14 products) of cakes was launched under the "Linda"      
trademark, with the group's tart portfolio seeing the addition of three new     
flavours―-the peach cheese-cake (850 g), cheese-cake (700g) and chocolate       
cheese-cake (730g). The popular "Vilma" flour mix series saw two new            
additions―-the thin crust pizza powder (400g) and the vanilla-flavoured cake    
powder (350g). In the biscuit segment, all biscuits have a new visual and       
packaging. The tiramisu-flavoured biscuits (180 g) were added to the product    
portfolio, with "Nisukliiküpsis" biscuits with raspberry and pumpkin seeds added
to the low calorie series with healthy additives.                               
The total volume of sale of flour confectionery products (incl. pastry products,
biscuits and flour mixes) for the financial year 2007/2008 amounted to 2,956    
tons. This constitutes a 23% decrease from the total sales of flour             
confectionery products in the comparative period. Similarly to sugar and        
chocolate confectionery segments, different sales dynamics can be distinguished 
among the product groups of the flour confectionery segment: for instance, the  
total volume of sale of flour mixes increased by nearly 17%, compared to the    
comparative period, and the sale of biscuits by 9%. The share of export is      
immaterial in the flour confectionery segment.                                  

In the first half of the financial year 2007/2008, a majority (88%) of the      
confectionery product output (i.e. sugar, chocolate and flour confectionery     
products) was sold at the domestic market, with export amounting to 12% of the  
turnover (8% in the last financial year). Export sales of confectionery products
increased by 80%, compared to last year. Export to Lithuania made up 33% of the 
total export of Kalev Group confectionery products (only 3% in the comparative  
period), with export to Latvia amounting to 26%, Travel Trade  to 23%, Russia to
9% and Finland to 8%.                                                           

1.3.2.  Dairy products                                                          

Different dairy products were produced from the crude milk stocked by AS Kalev  
Paide Tootmine in the financial year. Due to the market conditions and          
production-economic reasons, the company focused on the production of cream,    
skimmed milk and condensed skimmed milk (these made up nearly 77% of the        
output). AS Kalev Paide Tootmine added fatty powders, skimmed milk and milk     
concentrate to its list of products in the reporting period. Due to the         
unfavourable raw material and final price situation in Estonia and abroad, the  
company temporarily suspended production activities in AS Kalev Paide Tootmine  
in March 2008. At the same time, sales activities were continued. From April    
2008, AS Kalev Paide Tootmine provides contracting services, incl. to AS Tere.  
These services mainly include manufacturing of products (mainly powder, fresh   
cream and drinking milk) which require no milk purchase by the company.         
Condensed skimmed milk sales made up nearly 37% of the total sales volume of AS 
Kalev Paide Tootmine in the period. The share of cream was 29% and skimmed milk 
powder 10% of the total sales volume. Production volume increased by nearly     
10.7%, compared to the comparative period, amounting to a total of 12,676 tons. 
Nearly two-thirds (nearly four-fifths in the comparative period) of the total   
output of AS Kalev Paide Tootmine was exported to the European Union (mainly    
Germany).                                                                       

The increase in the price of stocked milk has had a significant influence on the
results for the financial year, as well as on the whole dairy market. According 
to Statistics Estonia, the average increase in production prices for            
agricultural products reached an annual 21% in the middle of the year, with the 
corresponding price for milk rising by 22%. By the time of preparation of this  
report, the raw material price hikes in Estonia had ceased.                     

The main focus of product development in AS Kalev Paide Tootmine lies in the    
creation of additional options for valuation of the raw material. The company   
thus made bigger investments than in the comparative period ― the cream         
production line was improved with automatic sample-takers in order to get a     
better sample of the raw material. The company also implemented methods of      
analysis for more accurate measurement of the fat content. For valuation of fat 
as a powder product, the cream powder production technology was improved: AS    
Kalev Paide Tootmine added a homogenisator to the production line, and renewed  
the powder transportation system to bring it into line with the requirements for
transporting more glutinous powder. The most important development project      
focused on creating additional option for valuation of skimmed milk and milk in 
the production of concentrate (as an alternative to the drying technology), as  
well as creating loading options for the concentrate.                           

1.3.3. Real estate activities                                                   

AS Kalev pursues real estate management and development activities through its  
subsidiary AS Kalev Real Estate Company (hereinafter Kalev REC), and through its
subsidiaries and associated companies. Since the Group has followed the         
principle of conservatism in creating its portfolio, any fluctuations in the    
market segment have no substantial effect on the economic results. In the real  
estate segment, the most important project had to do with the development       
activities of the subsidiary OÜ BCA Center in the reconstruction of five schools
within the framework of the Private Partnership for Tallinn Schools Project (the
scheduled term of completion of three schools was July 2008 and two schools     
December 2008).  The earlier real estate projects of AS Kalev REC have been     
further developed - the company has sold all apartments in the 19-apartment     
building in Marat Street in Tallinn, as well as the 25-apartment building in    
Hommiku Street in Pärnu. By the time of preparation of this report, a detailed  
plan for the Ringi 56 real estate owned by AS Kalev REC's associate OÜ Ringi    
Haldus has been completed, permitting construction of a 4,600 m2 apartment      
building. Design work on the building has already commenced. Detailed plans on  
Kalev REC's registered immovables at Tervise 5 and Pärnu mnt 139 (legal share)  
have been completed in the volume of the preliminary building design            
documentation.                                                                  

In January 2008, Kalev REC concluded a real right contract on the acquisition of
10 apartment ownerships in the Tallinn Old Town (at Kinga 1). The transaction   
price amounted to 77 million kroons, of which the buyer paid 15.4 million kroons
prior to the conclusion of the contract, and the remainder after the            
presentation of the real right contract to the land registry department. Kalev  
REC has established a combined mortgage on the acquired apartment ownerships in 
the amount of 42 million kroons and 18.6 million kroons for the benefit of AS   
Hansapank.                                                                      

AS Kalev REC's Bulgarian-based subsidiary EOOD Stude REC is just about to       
complete construction of the 6,500 m2 apartment building in Sofia. The company  
will apply for the permit of use for the building by the end of 2008 at the     
latest. Broker companies have already been selected for the sale of the         
apartments from August 2008.                                                    

Although the company's real estate segment has, so far, focused on development  
of residential and commercial space, AS Kalev REC is paying increasing attention
to the public real estate market. AS Kalev REC is also eager to participate in  
further private partnership projects.                                           

1.3.4. Media                                                                    

AS Kalev Meedia and its subsidiary OÜ Eesti Spordikanal are involved in three   
segments: print media, Internet, television. AS Kalev Meedia publishes the      
gossip magazine Just, financial magazine Ärielu, sports magazines Sporditäht,   
Basket and Jalka; fashion and lifestyle magazines Avenüü and Avenüü             
Professional, IT magazine Praktiline Arvutikasutaja as well as the children's   
magazines Muumi and Muumi Mõistatuste ja Värviraamat. These publications had the
following average print runs in the financial year:  Just 13,300, Ärielu 5,000, 
Sporditäht 6,200, Basket 4,600, Jalka 6,900, Avenüü 7,400, Avenüü Professional  
1,400, Muumi 9,100, Muumi Mõistatuste- ja Värviraamat 5,000, Praktiline         
Arvutikasutaja 4,000. At the same time, actual reader numbers are remarkably    
bigger for these publications - according to the Estonian Media Survey conducted
by TNS Emor in the second quarter of 2008, Just had 41,000, Sporditäht 12,000,  
Avenüü 15,000, Muumi 14,000, Ärielu 5,000, Basket 7,000 and Praktiline          
Arvutikasutaja 7,000 readers.                                                   

In the reporting period, the company renewed the sports magazine Sporditäht.    
With a new concept and under the supervision of a new editor-in-chief, the      
magazine is published as a weekly since September 2007. To launch the new       
product, the company organised an extensive advertising campaign. This was also 
the first bigger public campaign for AS Kalev Meedia. Major changes were        
introduced to the contents and format of the gossip magazine Just at the end of 
2007. In February 2008, AS Kalev Meedia acquired the IT publication Praktiline  
Arvutikasutaja, with Ando Urbas remaining as the editor-in-chief. AS Kalev      
Meedia considers Praktiline Arvutikasutaja to have great potential - the        
magazine can be marketed to an even wider target group.                         

The company has also completed several bigger projects. In October 2007, a new  
concept was developed for the financial magazine Ärielu. A new web-based news   
portal http://www.kalev.ee was completed. In March 2008, the company introduced
changes 
in the design and functionality of the news portal with the aim of making the   
portal more attractive and the contents more user-friendly for the readers.     
According to the current statistics, the news portal had an average of 22,516   
unique visitors per week, 74,477 per month.                                     

The new sports-orientated news and entertainment channel KalevSport was launched
by AS Kalev Meedia's subsidiary OÜ Eesti Spordikanal on 12 November 2007.       
According to the TV Audience Meter Survey conducted by TNS EMOR between 12      
November 2007 and 30 June 2008 (target group: Estonian population over the age  
of 4), the Daily Reach of Kalev Sport was 40,000, the Daily Reach % was 3.1 and 
the Daily Share was 0.3%. A total of 446,000 people watched the Kalev Sport     
channel in the period.                                                          

To create a synergy between the different pursuits - print media, Internet,     
telemedia - and ensure the consequent increase in content quality, cost         
efficiency and competitiveness, the different editorials were brought to AS     
Kalev Meedia's new premises at Tornimäe 5 in the heart of Tallinn. The company  
also completed the photo studio in the reporting period. As of 30 June 2008, 119
people were employed in Kalev Group's media segment (incl 82 in AS Kalev Meedia 
and 37 in OÜ Spordikanal).                                                      

1.4. Future activities                                                          

As regards the continued operations of AS Kalev, the company still pursues real 
estate activities through AS Kalev REC and its direct subsidiaries. The dairy   
area is developed through AS Kalev Paide Tootmine. The growth in the real estate
sector in Estonia has allowed Kalev Group to actively pursue real estate        
development and management. So far, the main attention has focused around       
residential and commercial space development. In the future, the company plans  
to develop its activities also in the public real estate sector, including      
partnership projects. AS Kalev is set to change its strategy in accordance with 
the dynamics of the sector, and the occurrences on the real estate market.      

Major changes are revolving around AS Kalev's new fields of activity ― media and
event marketing segments. The company is planning to further develop the group's
magazines, enhance reader numbers and increase advertising revenue. Development 
activities will also involve the web-based news portal http://www.kalev.ee and
the TV 
channel KalevSport. The completed photo studio will enhance the speed and       
quality of photo material production in the Group. In addition, the company is  
weighing the expansion options in the media market, incl. launch of new         
publications.                                                                   

As regards the discontinued operations of AS Kalev, AS Kalev Chocolate Factory  
bases its pursuits on the goal of being the market leader in the sugar and      
chocolate confectionery segment. Profitability will be increased through        
optimising the assortment and enhancing production efficiency. In product       
development, the goal is to extend the terms of expiry as well as produce       
healthy products and create new flavours. The chocolate confectionery segment   
focuses on the development of chocolate tablets, chocolate candies and boxed    
chocolates, while the sugar confectionery segment focuses on chewing candies and
toffee. In the pastry and flour confectionery segment, the focus will lie on    
flour mix and biscuit production.                                               

The dairy product segment is affected by global developments as well as         
positioning of the product portfolio in the segment. The milk processing segment
is characterised simultaneously by the increase in demand for agricultural      
products, abandonment of the EU support schemes and formulation of the supply   
conditions for domestic raw material. AS Kalev Paide Tootmine is planning       
changes in both overall strategy and product portfolio. Technical work has      
already been launched on the new UHT cream production line. This will provide an
alternative in the valuation of fat.  It will also create options for enhancing 
export.                                                                         

INCOME STATEMENT                                                                

--------------------------------------------------------------------------------
| in thousands |          |         |         |         |         |            |
| of kroons    |          |         |         |         |         |            |
--------------------------------------------------------------------------------
|              | Consolidated                 |   Consolidated                 |
--------------------------------------------------------------------------------
|              |     2008 |    2008 |    2008 |    2007 |    2007 |       2007 |
--------------------------------------------------------------------------------
|              | 12       | 12      | 12      | 12      | 12      | 12 months  |
|              | months   | months  | months  | months  | months  |            |
--------------------------------------------------------------------------------
|              | continue | discont | Total   | continu | discont | Total      |
|              | d        | inued   |         | ed      | inued   |            |
|              | operatio | operati |         | operati | operati |            |
|              | ns       | ons     |         | ons     | ons     |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue      |   827179 |  508121 | 1335300 |  606348 |  319356 |     925704 |
--------------------------------------------------------------------------------
| Cost of      |  -763916 | -343485 | -110740 | -552251 | -181984 |    -734235 |
| sales of     |          |         |       1 |         |         |            |
| goods and    |          |         |         |         |         |            |
| services     |          |         |         |         |         |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit |    63263 |  164636 |  227899 |   54097 |  137372 |     191469 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing    |   -38959 | -101283 | -140242 |  -40003 |  -77672 |    -117675 |
| expenses     |          |         |         |         |         |            |
--------------------------------------------------------------------------------
| Administrati |   -91274 |  -24298 | -115572 |  -56824 |  -30397 |     -87221 |
| ve and       |          |         |         |         |         |            |
| general      |          |         |         |         |         |            |
| expenses     |          |         |         |         |         |            |
--------------------------------------------------------------------------------
| Other income |   187964 |     377 |  188341 |   82672 |    -250 |      82422 |
| and expenses |          |         |         |         |         |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating    |   120994 |   39432 |  160426 |   39942 |   29053 |      68995 |
| profit       |          |         |         |         |         |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other        |   -30493 |  -16339 |  -46832 |  -28490 |   -9798 |     -38288 |
| financial    |          |         |         |         |         |            |
| income and   |          |         |         |         |         |            |
| expenses     |          |         |         |         |         |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit       |    90501 |   23093 |  113594 |   11452 |   19255 |      30707 |
| before       |          |         |         |         |         |            |
| income tax   |          |         |         |         |         |            |
--------------------------------------------------------------------------------
| Income tax   |     -430 |       0 |    -430 |    -282 |       0 |       -282 |
--------------------------------------------------------------------------------
| Profit       |    90071 |   23093 |  113164 |   11170 |   19255 |      30425 |
| before       |          |         |         |         |         |            |
| minority     |          |         |         |         |         |            |
| interest     |          |         |         |         |         |            |
--------------------------------------------------------------------------------
| Minority     |        0 |      -5 |      -5 |         |      34 |         34 |
| interest     |          |         |         |         |         |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for   |    90071 |   23088 |  113159 |   11170 |   19289 |      30459 |
| the period   |          |         |         |         |         |            |
--------------------------------------------------------------------------------
| Net profit per share held by the  | 4.79    |         |         |       1.29 |
| owners of the parent company      |         |         |         |            |
| (basic and diluted; in kroons)    |         |         |         |            |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| in thousands  |         |         |         |          |           |         |
| of euros      |         |         |         |          |           |         |
--------------------------------------------------------------------------------
|               | Consoli |         |         |          | Consolida |         |
|               | dated   |         |         |          | ted       |         |
--------------------------------------------------------------------------------
|               |    2008 |    2008 |    2008 |     2007 |      2007 |    2007 |
--------------------------------------------------------------------------------
|               | 12      | 12      | 12      | 12       | 12 months | 12      |
|               | months  | months  | months  | months   |           | months  |
--------------------------------------------------------------------------------
|               | continu | discont | Total   | continue | discontin | Total   |
|               | ed      | inued   |         | d        | ued       |         |
|               | operati | operati |         | operatio | operation |         |
|               | ons     | ons     |         | ns       | s         |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue       |   52866 |   32475 |   85341 |    38753 |     20411 |   59163 |
--------------------------------------------------------------------------------
| Cost of sales |  -48823 |  -21953 |  -70776 |   -35295 |    -11631 |  -46926 |
| of goods and  |         |         |         |          |           |         |
| services      |         |         |         |          |           |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit  |    4043 |   10522 |   14565 |     3457 |      8780 |   12237 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing     |   -2490 |   -6473 |   -8963 |    -2557 |     -4964 |   -7521 |
| expenses      |         |         |         |          |           |         |
--------------------------------------------------------------------------------
| Administrativ |   -5833 |   -1553 |   -7386 |    -3632 |     -1943 |   -5574 |
| e and general |         |         |         |          |           |         |
| expenses      |         |         |         |          |           |         |
--------------------------------------------------------------------------------
| Other income  |   12013 |      24 |   12037 |     5284 |       -16 |    5268 |
| and expenses  |         |         |         |          |           |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating     |    7733 |    2520 |   10253 |     2553 |      1857 |    4410 |
| profit        |         |         |         |          |           |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other         |   -1949 |   -1044 |   -2993 |    -1821 |      -626 |   -2447 |
| financial     |         |         |         |          |           |         |
| income and    |         |         |         |          |           |         |
| expenses      |         |         |         |          |           |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before |    5784 |    1476 |    7260 |      732 |      1231 |    1963 |
| income tax    |         |         |         |          |           |         |
--------------------------------------------------------------------------------
| Income tax    |     -27 |       0 |     -27 |      -18 |         0 |     -18 |
--------------------------------------------------------------------------------
| Profit before |    5757 |    1476 |    7232 |      714 |      1231 |    1945 |
| minority      |         |         |         |          |           |         |
| interest      |         |         |         |          |           |         |
--------------------------------------------------------------------------------
| Minority      |       0 |       0 |       0 |        0 |         2 |       2 |
| interest      |         |         |         |          |           |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for    |    5757 |    1476 |    7232 |      714 |      1233 |    1947 |
| the period    |         |         |         |          |           |         |
--------------------------------------------------------------------------------
| Net profit per share held by the  | 0.31    |          |           | 0.08    |
| owners of the parent company      |         |          |           |         |
| (basic and diluted; in kroons)    |         |          |           |         |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| in thousands |           |         |         |        |          |           |
| of kroons    |           |         |         |        |          |           |
--------------------------------------------------------------------------------
|              | Consolidated        |         |        | Consolidated         |
--------------------------------------------------------------------------------
|              |      2008 |    2008 |    2008 |   2007 |     2007 |      2007 |
--------------------------------------------------------------------------------
|              | 4th       | 4th     | 4th     | 4th    | 4th      | 4th       |
|              | quarter   | quarter | quarter | quarte | quarter  | quarter   |
|              |           |         |         | r      |          |           |
--------------------------------------------------------------------------------
|              | continued | discont | Total   | contin | disconti | Total     |
|              | operation | inued   |         | ued    | nued     |           |
|              | s         | operati |         | operat | operatio |           |
|              |           | ons     |         | ions   | ns       |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue      |  280998   | 162138  | 443136  | 142471  | 61671    | 204142   |
--------------------------------------------------------------------------------
| Cost of      |   -285293 | -117195 | -402488 | -12926 |   -36003 |   -165263 |
| sales of     |           |         |         |      0 |          |           |
| goods and    |           |         |         |        |          |           |
| services     |           |         |         |        |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | -6295     | 44943   | 38648   | 13212  | 25668    |    38880  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing    |      -707 |  -26497 |  -27204 | -15875 |   -19534 |    -35409 |
| expenses     |           |         |         |        |          |           |
--------------------------------------------------------------------------------
| Administrati |    -22796 |   -5320 |  -28116 |  -5412 |    -9724 |    -15136 |
| ve and       |           |         |         |        |          |           |
| general      |           |         |         |        |          |           |
| expenses     |           |         |         |        |          |           |
-----------------
--------------------------------------------------------------- 
| Other income |   150738  | 1237    | 151795  | 33146  |  -445    |    32701  |
| and expenses |           |         |         |        |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating    | 120940    | 14363   | 135303  | 25071  | -4035    |    21036  |
| profit       |           |         |         |        |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other        |       673 |   -5173 |   -4500 | -12607 |    -2927 |    -15534 |
| financial    |           |         |         |        |          |           |
| income and   |           |         |         |        |          |           |
| expenses     |           |         |         |        |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit       |    121613 | 9190    | 130803  | 12464  | -6962    |    5502   |
| before       |           |         |         |        |          |           |
| income tax   |           |         |         |        |          |           |
--------------------------------------------------------------------------------
| Income tax   |           |       0 |       0 |   -282 |        0 |      -282 |
--------------------------------------------------------------------------------
| Profit       | 121613    | 9190    | 130803  | 12182  | -6962    |    5220   |
| before       |           |         |         |        |          |           |
| minority     |           |         |         |        |          |           |
| interest     |           |         |         |        |          |           |
--------------------------------------------------------------------------------
| Minority     |         0 |     -29 |     -29 |      0 |        5 |         5 |
| interest     |           |         |         |        |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for   | 121613    | 9161    | 130774  | 12182  | -6957    |    5225   |
| the period   |           |         |         |        |          |           |
--------------------------------------------------------------------------------
| Net profit per share held by the   | 7.96    |        |          | 0.22      |
| owners of the parent company       |         |        |          |           |
| (basic and diluted; in kroons)     |         |        |          |           |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| in          |         |         |          |          |          |           |
| thousands   |         |         |          |          |          |           |
| of euros    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
|             | Consolidated      |          |          | Consolidated         |
--------------------------------------------------------------------------------
|             |    2008 |    2008 |     2008 |     2007 |     2007 |      2007 |
--------------------------------------------------------------------------------
|             | 4th     | 4th     | 4th      | 4th      | 4th      | 4th       |
|             | quarter | quarter | quarter  | quarter  | quarter  | quarter   |
--------------------------------------------------------------------------------
|             | continu | discont | Total    | continue | disconti | Total     |
|             | ed      | inued   |          | d        | nued     |           |
|             | operati | operati |          | operatio | operatio |           |
|             | ons     | ons     |          | ns       | ns       |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue     | 17959   | 10363   |   28322  | 9106     | 3941     |    13047  |
--------------------------------------------------------------------------------
| Cost of     |  -18234 |   -7490 |   -25724 |    -8261 |    -2301 |    -10562 |
| sales of    |         |         |          |          |          |           |
| goods and   |         |         |          |          |          |           |
| services    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross       | -402    | 2872    | 2470     | 844      | 1640     |    2485   |
| profit      |         |         |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing   |     -45 |   -1693 |    -1739 |    -1015 |    -1248 |     -2263 |
| expenses    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
| Administrat |   -1457 |    -340 |    -1797 |     -346 |     -621 |      -967 |
| ive and     |         |         |          |          |          |           |
| general     |         |         |          |          |          |           |
| expenses    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
| Other       | 9634    | 79      | 9713     | 2118     | -28      |    2090   |
| income and  |         |         |          |          |          |           |
| expenses    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating   | 7729    | 918     | 8647     | 1602     | -258     |    1344   |
| profit      |         |         |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other       |      43 |    -331 |     -288 |     -806 |     -187 |      -993 |
| financial   |         |         |          |          |          |           |
| income and  |         |         |          |          |          |           |
| expenses    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit      | 7772    | 587     | 8360     | 797      | -445     |    352    |
| before      |         |         |          |          |          |           |
| income tax  |         |         |          |          |          |           |
--------------------------------------------------------------------------------
| Income tax  |       0 |       0 |        0 |      -18 |        0 |       -18 |
--------------------------------------------------------------------------------
| Profit      | 7772    | 587     | 8360     | 779      | -445     |    334    |
| before      |         |         |          |          |          |           |
| minority    |         |         |          |          |          |           |
| interest    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
| Minority    |       0 |      -2 |       -2 |        0 |        0 |         0 |
| interest    |         |         |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for  | 7772    | 585     | 8358     | 779      | -445     |    334    |
| the period  |         |         |          |          |          |           |
--------------------------------------------------------------------------------
| Net profit per share held by    | 0.51     |          |          | 0.01      |
| the owners of the parent        |          |          |          |           |
| company (basic and diluted; in  |          |          |          |           |
| kroons)                         |          |          |          |           |
--------------------------------------------------------------------------------

BALANCE SHEET                                                                   

--------------------------------------------------------------------------------
|                         | Consolidated (in EEK)    |             |           |
--------------------------------------------------------------------------------
|                         |   30.06.2008 | 30.06.200 |  30.06.2008 | 30.06.200 |
|                         |              |         8 |             |         7 |
--------------------------------------------------------------------------------
|                         | continued    | discontin | Total       |           |
|                         | operations   | ued       |             |           |
|                         |              | operation |             |           |
|                         |              | s         |             |           |
--------------------------------------------------------------------------------
| ASSETS                  |              |           |             |           |
--------------------------------------------------------------------------------
| Current assets          |              |           |             |           |
--------------------------------------------------------------------------------
| Cash                    |       101063 |      2432 |      103495 |     17337 |
--------------------------------------------------------------------------------
| Receivables             |       464585 |     13157 |      477742 |    148050 |
--------------------------------------------------------------------------------
| Prepayments             |         1610 |       539 |        2149 |      2653 |
--------------------------------------------------------------------------------
| Inventories             |       150208 |     41826 |      192034 |    218617 |
--------------------------------------------------------------------------------
| Total current assets    |       717466 |     57954 |      775420 |    386657 |
--------------------------------------------------------------------------------
| Non-current assets      |              |           |             |           |
--------------------------------------------------------------------------------
| Long-term investments   |        35199 |         0 |       35199 |      3733 |
| and receivables         |              |           |             |           |
--------------------------------------------------------------------------------
| Investment property     |       330657 |         0 |      330657 |    214601 |
--------------------------------------------------------------------------------
| Property, plant and     |       181165 |    423053 |      604218 |    644876 |
| equipment               |              |           |             |           |
--------------------------------------------------------------------------------
| Intangible assets       |        20761 |         0 |       20761 |     62635 |
--------------------------------------------------------------------------------
| Total non-current       |       567782 |    423053 |      990835 |    925846 |
| assets                  |              |           |             |           |
--------------------------------------------------------------------------------
| TOTAL ASSETS            |      1285248 |    481007 |     1766255 |   1312503 |
--------------------------------------------------------------------------------
| LIABILITIES AND OWNER'S EQUITY         |           |             |           |
--------------------------------------------------------------------------------
| Liabilities             |              |           |             |           |
--------------------------------------------------------------------------------
| Short-term borrowings   |       368157 |     72770 |      440927 |    348317 |
--------------------------------------------------------------------------------
| Prepayments             |        18698 |        21 |       18719 |      1461 |
--------------------------------------------------------------------------------
| Payables to suppliers   |       192286 |     53028 |      245314 |    284439 |
| and other payables      |              |           |             |           |
--------------------------------------------------------------------------------
| Total current           |       579141 |    125819 |      704960 |    634218 |
| liabilities             |              |           |             |           |
--------------------------------------------------------------------------------
| Non-current liabilities |              |           |             |           |
--------------------------------------------------------------------------------
| Long-term borrowings    |       382193 |    192448 |      574641 |    304837 |
--------------------------------------------------------------------------------
| Total non-current       |       382193 |    192448 |      574641 |    304837 |
| liabilities             |              |           |             |           |
--------------------------------------------------------------------------------
| Total liabilities       |       961334 |    318267 |     1279601 |    939054 |
--------------------------------------------------------------------------------

Tarmo Maasikamäe
Financial director
+3726886600

Attachments

toimeng vahearuanne2008_corrected.pdf