SALES IN 2008

The unaudited consolidated sales of Tallinna Kaubamaja Group totalled 6.6
billion kroons (419.8 million euros) in 2008. The sales in 2007 amounted to 5.9
billion kroons (376.6 million euros). The turnover increased by 11%. 

The consolidated sales in the supermarkets business segment were 4.3 billion
kroons (274.5 million euros) in 2008, a 15% growth year over year. The
consolidated unaudited sales for Selver in Q4 2008 were 1.2 billion kroons
(79.8 million euros), up 20% year over year. The estimated share of Selver
sales in Estonian non-speciality grocery retailers was 15.2%, increasing 0.5%
during the year. 

The average monthly consolidated net sales per square meter of sales area of
Selver were 6.7 thousand kroons per month in 2008, a decrease of 11% year over
year. Lower efficiency during the start-up-period in newly opened stores was
the main reason behind the fall in the average sales efficiency for the chain.
The monthly turnover per square meter of sales area in comparable stores was
7.2 thousand kroons, showing just a 5% decrease. Selver opened eight new stores
in Estonia and two new stores in Latvia during 2008. Furthermore, the sales
area in five already existing stores was expanded. Altogether the sales area in
supermarkets business segment grew by 24.3 thousand square meters in 2008. The
sales area in Estonia and Latvia grew in total by 56% over the year. In 2009
Selver plans to open two new stores in Estonia and four in Latvia. The initial
plan to open even more stores in Latvia was reviewed in the light of the
changed economic situation in Latvia. 

The sales revenue in the Kaubamaja department stores business segment amounted
to 1,535.0 million kroons (98.1 million euros) in 2008, a fall of 0.7% compared
with the results of the previous year. The sales of Kaubamaja department stores
per square meter of sales area amounted to 5.5 thousand kroons per month, one
per cent down year over year. 

The sales revenue in the property business segment amounted to 41.6 million
kroons (2.7 million euros) in 2008, a growth of 3% compared with the year
before. 

The sales revenue in the car sales business segment amounted to 528.0 million
kroons (33.7 million euros) in 2008, a fall of 10% over the year compared to
2007. The sales of less expensive cars were better, altogether 2 056 new cars
were sold - 7% less than in 2007, when 2 207 cars were sold. 

In April Tallinna Kaubamaja Group started in footwear retailing, the sales of
which, when incorporated, totalled 168.5 million kroons (10.8 million euros).
During the period five new stores were opened and two closed. By the end of the
year the Group owns 35 footwear stores, 7 in Latvia and 28 in Estonia. 

The sales results for 2008 were heavily affected by the overall economic
downturn. 

The Group acquired a total of 31.4 thousand square metres of new sales area
during the year, 6.4 thousand of which were purchased with footwear stores. At
the end of 2008 the total sales area was 97.8 thousand square meters. 

37.6 million purchases were made in the Group in 2008, which is up 8% year over
year. 28.9 million purchases were made in the Selver chain, 8.3 million in the
Kaubamaja department stores and 0.4 million in footwear retailing. The number
of purchases in the Selver chain grew by 10%, while for the Kaubamaja
department stores the figure declined by 3%. 

As at the end of 2008 the Group had more than 345 thousand loyal customers, the
figure has increased by 38% over the year. The number of Partner credit cards
was 10 000. 

The main priorities for Tallinna Kaubamaja Group for the year 2009 are:
•	Effective start-up period of the Selver chain on the Latvian market
•	Merging the footwear businesses and modernising the concept of footwear stores
•	Opening the first shops in the I.L.U. beauty chain
•	Renewing the Beauty Department of Tallinna Kaubamaja

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