According to the agreement, signed on 11th of July 2008, two Tallinna Kaubamaja AS 100% owned subsidiaries TKM Shoes OÜ and ABC King AS will merge. The merger agreement has been approved by the sole shareholder of AS ABC King and sole shareholder of TKM Shoes OÜ. Acquiring company is ABC King AS. The merger entry to the Commercial Register will be made by the middle of August 2008. The goal of the transaction is to systemize the juridical structure of the group and eventually centralize footwear retailing activities in Estonia under one company. The merger is an intergroup transaction and does not have any significant impact on Tallinna Kaubamaja AS economic activities. Raul Puusepp The Chairman of Board Phone: +372 7 315 000