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DIVISION OF TALLINNA KAUBAMAJA SUBSIDARIES

TALLINN, 27.03.2013, www.nasdaqomxbaltic.com - With the intention of improving the structure and making the administration of Tallinna Kaubamaja group more transparent, division of car business subsidiaries shall take place.

With the intention of improving the structure and making the administration of Tallinna Kaubamaja group more transparent, division of its subsidiaries shall take place.

The field of activity of AS Viking Motors includes sale and service of Opel, Cadillac and KIA vehicles, and service of Saab, Corvette and Hummer in Tallinn. KIA Auto AS imports KIAs and is also active in the sales via its subsidiary OÜ Ülemiste Autokeskus. The sales activity of the group in Estonia shall be focused to AS Viking Motors. For this purpose KIA Auto AS plans to separate and transfer via division the shareholding in OÜ Ülemiste Autokeskus to AS Viking Motors.

Secondly, with the purpose of making the sole activity of KIA Auto AS importing of cars, the shareholding of KIA Auto AS in Latvian subsidiary SIA KIA Automobiles and Lithuanian subsidiary UAB KIA Auto shall be transferred directly to TKM Auto OÜ. For this purpose another division of KIA Auto AS shall take place simultaneously, where the recipient company shall be OÜ Opti Auto, which shall be established in the course of division with a share capital of EUR 2,500 whereas TKM Auto OÜ shall get 100% shareholding in the company. Jüri Kuusk who is also the member of the management board of TKM Auto OÜ and AS Viking Motors shall become the member of the management board of OÜ Opti Auto.

Today the division plan of KIA Auto AS and the division agreement of KIA Auto AS and AS Viking Motors were concluded. The abovementioned divisions shall be registered with the Commercial Registry approximately in June 2013. Establishing the subsidiary and reorganizing the structure of the group has no impact on the consolidated financial results. Establishment of the subsidiary does not constitute an acquisition of a significant holding in the meaning of the section "Requirements for Issuers" in the NASDAQ OMX Tallinn rules. The abovementioned restructuring does not have substantial influence on the operations of the Tallinna Kaubamaja AS group. The supervisory and management board members of Tallinna Kaubamaja AS have no personal interests in these transactions.

Raul Puusepp
Chairman of the Board