Market announcement

Title

BOND ISSUE

Message

Bonds with a term of 6 months and a redemption date of 28 August 2008 will be
issued by AS Kalev on 28 February 2008 in the amount of 6,881 thousand euros
(107.7 million kroons). The bonds have a nominal value of 1,000 euros and an
annual interest rate of 12%. 

The issued bonds have been secured with the shares of the issuer's subsidiary
Kalev REC AS. 

The bond issue will be organized by SEB Bank.

The funds raised through the bond issue will be used by AS Kalev for redemption
of previously issued bonds. 

Tarmo Maasikamäe
Telephone: 6161900
Tarmo.Maasikamae@kalev.ee