TKM BEAUTY TO OPEN FIRST BEAUTY STORE


On March 19th 2009, OÜ TKM Beauty, a subsidiary of Tallinna Kaubamaja AS, will
open the first beauty store named I.L.U. in Pärnu, in the Pärnu Keskus located
at the address Aida 7. The total area of leased by OÜ TKM Beauty is 380 sq m. 

The investment per square meter of the store was approximately 16,000 kroons
(1,000 Euros), which is an above average investment in the said area of trade. 

All in all, five commercial lease contracts have been entered into in the
Baltic Sates, the next beauty stores are planned to be opened in Tallinn and
Tartu, in 2009. 

The stores bearing the I.L.U. trademark will have a concept differing from
usual beauty stores and they are significantly larger - with sales space of 350
to 600 sq m. The main sales article of the topically-built stores will be
exclusive and decorative cosmetics, perfumes for men and women, spa and hair
care products. More attention than previously will be paid to men's beauty
products, in addition the stores will offer various services as nail studio,
hairdresser and cosmetician. 

TKM Beauty is a 100% subsidiary of Tallinn Kaubamaja Group. The purpose of the
company is the development and operation of the pan-Baltic I.L.U. beauty store
chain. In near future, new beauty stores are planned to be opened in all Baltic
States. 

Raul Puusepp
Chairman of the Board
Tallinna Kaubamaja AS
Phone +372 731 5000

Lea Endrikson
Chairman of the Board
OÜ TKM Beauty
Phone +372 667 3286