Delay in the publication of the interim financial statements of AS Kalev

AS Kalev will publish the audited annual report of the company for the
financial year 2007/2008, and the interim financial statements for the first 3
months of the financial year 2008/2009 by 5 December 2008 at the latest. AS
Kalev filed an application for exemption to the Tallinn Stock Exchange for
later-than-usual submission of the interim financial statements. 

On 20 September 2007, AS Kalev concluded with Alta Capital Partners S.C.A a
contract of purchase and sale of the shares of AS Kalev's subsidiaries
operating in the food industry. In connection with the conclusion of the
contract of purchase and sale, AS Kalev accounted for these subsidiaries as
assets held for sale, and its food industry as a discontinued segment. 

AS Kalev recorded the assets held for sale under a separate line in accordance
with the accounting rules, and ended depreciation calculation on these assets.
One of the conditions of the asset reclassification is that the transaction of
sale must be completed within a year. The interim financial statements for the
12 months of the financial year 2007/2008 have been prepared in accordance with
the above requirements (with discontinued segments, depreciation, etc.
separately accounted for). 

On 30 June 2008, AS Kalev withdrew from the above contract of purchase and sale
of shares, as the buyer failed to fulfil the obligation of paying the purchase
price arising from the contract of purchase and sale within 9 months. 

By the time of completion of the Annual Report 2007/2008 of AS Kalev (i.e. the
present time), the transaction of purchase and sale has been cancelled.  Thus,
the condition established for the sale of the assets held for sale within 1
year has not been fulfilled. AS Kalev will therefore not record the
discontinued segments in its audited annual report. 

As a result of not recognising the discontinued segments, the results for the
financial year will change, compared to the data in the 12-month interim
financial statements published in the Tallinn Stock Exchange information system
(depreciation is calculated retrospectively). The comparative data in the
interim financial statements for the first 3 months will thus also be changed. 

Under the Tallinn Stock Exchange rules, the data to be published by the issuer
must, among other things, be accurate, complete and clearly understandable. To
avoid confusion with respect to the comparative data, AS Kalev therefore
considers it reasonable to publish the interim financial statements for the
first 3 months together with the audited annual report. 

The audited annual report for the financial year 2007/2008 will be published by
AS Kalev together with the interim financial statements for the financial year
2008/2009 on 5 December 2008. 


Allan Viirma
Head of legal service

688 6616