The non-audited sales revenue of Tallinna Kaubamaja Group for the first half-year of 2010 was 3.0 billion kroons (192.3 million euros), including the sales in the second quarter that amounted to 1.6 billion kroons (100.8 million euros). The sales revenue for the first half-year of 2009 totalled to 3.2 billion kroons (203.6 million euros) and in the second quarter to 1.7 billion kroons (106.2 million euros). In the first half-year, the sales revenue dropped by 5.5% and in the second quarter by 5.0%. The sales tax, levied in Tallinn since June, reduced the sales revenue by 2.4 million kroons (0.2 million euros). Compared to the first half-year of 2009, the turnover tax rates for the financial year and reference year are also different, but the sales prices in the stores of the group have not been raised in relation to the taxes. The consolidated sales revenue in the business segment of supermarkets for the first half of 2010 was 2.3 billion kroons (144.7 million euros), of which the sales revenue of the second quarter amounted to 1.2 billion kroons (75.5 million euros). The sales revenue of both periods dropped by 3% compared to the same periods of the previous year. In the first half year, the average monthly consolidated sales revenue per square metre of the selling space was 5.5 thousand kroons per month, exhibiting a growth of 1% compared to the same period of the previous year. In the second quarter, the sales revenue per square meter of the selling space was 5.7 thousand kroons per month, growing by 6% compared to the same period of the previous year. The sales revenue of the supermarket segment in Estonia for the first half-year was 2.3 billion kroons (144.7 million euros), achieving the level comparable to 2009. At the same time, in Estonia the retail sales in non-specialised stores, selling predominantly food products, beverages and tobacco products, dropped by 7% in the first five months of the year. The sales revenue for the second quarter was 1.2 billion kroons (75.5 million euros), exceeding the sales revenue of the same period of the previous year by 2%. In the first half-year, the sales revenue per square metre of selling space was an average of 5.5 thousand kroons per month and in the second half year 5.7 thousand kroons, exhibiting a drop of 3% and 1%, respectively, compared to the same period of the previous year. In comparable stores, the sales revenue per square metre of selling space for the first half-year was 5.6 thousand kroons, i.e. it dropped by 3% as compared to the benchmark. In Selvers located in Estonia, the number of purchases made in the first half-year of 2010 amounted to 16.3 million, exceeding the number of purchases made during the earlier period of the year by 1%. The sales results of the first half-year were promoted by a rise in the number of clients, successful marketing activities and sales campaigns. The sunny weather in the week of Midsummer Day also contributed to good sales results. The sales revenue in the week of Midsummer Day grew 8% compared to the earlier period of the year. More attention than before has been paid to the availability of goods throughout the opening hours of each store and to the display of goods. The sales revenue has been negatively affected by the tightened competition and the levy of the sales tax in some regions, also by the rise in the turnover tax. As a result of the decision, passed in the autumn of 2009, to freeze the business activity in Latvia, 5 out of the 6 Selver stores in Latvia were closed by the end of 2009. The last of the stores, the one operating in Daugavpils, was closed in March of this year. In the first half-year of 2010, the sales revenue of Selver in Latvia was, thus, 0.2 million kroons (10 thousand euros) compared to the 77.9 million kroons (5.0 million euros) of the same period of the previous year. In the second quarter, there was no sales revenue in Latvia. In March, a Selver store was opened at Rannarootsi Centre in Haapsalu. The store has a total selling space of 1.5 thousand square metres. After the opening of Rannarootsi Selver, there are altogether 35 Selver stores in Estonia. In the first half year of 2010, the sales revenue of the business segment of department stores was 537,7 million kroons (34.4 million euros), dropping by 8% compared to the same period of the previous year. This included the sales revenue for the second quarter of 283.3 million kroons (18.1 million euros) that was 8% lower than revenue of the II quarter of 2009. In the first half year, the sales revenue of the department stores per square meter was 3.6 thousand kroons per month, i.e. 12% lower than in the same period of the previous year. At the same time, the total selling space of the department stores has grown by 2%, i.e. 529 m2 compared to the last year. Last year the summer sales campaigns started as early as in mid-June that definitely influences the benchmark of the second quarter of the previous year. The sales revenue of the OÜ TKM Beauty Eesti, the operator of the three I.L.U. Beauty cosmetics stores, was 14.0 million kroons (0.9 million euros) in the first half year of 2010 and 7.4 million kroons (0.5 million euros) in the second quarter of 2010. In the comparable periods of the year 2009 only the Pärnu I.L.U. store was operating with sales revenue respectively 0.5 and 2.0 million kroons (0.03 and 0.1 million euros). The fourth store of the chain is planned to be opened this autumn at Kristiine Centre in Tallinn. The first half-year sales revenue of real estate business segment outside the Group was 19.8 million kroons (1.3 million euros) and in the second quarter sales was 9.7 million kroons (0.6 million euros). The first half-year sales dropped by 9% and in the second quarter dropped by 7% compared to the same period of the previous year due to the reduction of renting activities in Latvia. The sales revenue of the car segment for the first half-year of 2010 with the exclusion of inter-segmental transactions was 96.8 million kroons (6.2 million euros), falling short of the revenue for the same period of the previous year by 34%. The sales revenue of second quarter of 2010 decreased by 40% compared to the last year result and totalled to 51.2 million kroons (3.3 million euros). The turnover of the footwear retail segment for the first half year of 2010 was 91.8 million kroons (5.9 million euros), growing by 8% in a year. In the second quarter, the turnover was 52.9 million kroons (3.4 million euros), growing by 17% compared to the same period of 2009. The expansion of SHU footwear chain continued in the second quarter leading to the opening of SHU stores in the previous spaces of Suurtüki stores in Saaremaa, Hiiumaa, Krooni Centre in Rakvere and Eeden Centre in Tartu. The active expansion of SHU footwear chain will continue in the third quarter. Today, 28 stores of the 31 stores in the two footwear chains belonging to the group are located in Estonia and 3 in Latvia. Raul Puusepp Chairman of the Board Phone: +372 731 5000