FOUNDATION OF THE BEAUTY STORE CHAIN'S HOLDING AND SUBSIDIARY COMPANY

On October 9, 2007 Tallinna Kaubamaja group founded its 100% subsidiary TKM
Beauty OÜ in Estonia.  The share capital of TKM Beauty OÜ is 40,000 kroons
(2,556 euros).   The member of the Board is Lea Endrikson. The purpose of the
founded company is the development and coordination of the pan-Baltic beauty
store chain.  TKM Beauty OÜ will establish in each of the Baltic States a
separate subsidiary, which will be responsible for the establishment and
operations of the beauty store chain in each country. 

Proceeding from that, on October 12, 2007 application was submitted to the
Estonian commercial register to found TKM Beauty Eesti OÜ as a 100% subsidiary
of TKM Beauty OÜ.  The share capital of TKM Beauty Eesti OÜ is 40,000 kroons
(2,556 euros).   The member of the Board is Lea Endrikson. This company will be 
responsible for the establishment and operations of the beauty stores in
Estonia. 



Raul Puusepp
The Chairman of Board
Phone: +372 7 315 000