Market announcement

Title

INTERIM MANAGEMENT REPORT

Message

In the first 9 months of 2008, the sales revenue of Ekspress Group grew by 23%  
and EBITDA grew by 25%. In the 3rd quarter of 2008, the sales revenue grew by   
15% and EBITDA grew by 22% as compared to the same period last year. The modest 
sales growth in the 3rd quarter is related to the decline of advertising revenue
as a result of an economic cool-down. The growth of EBITDA was achieved through 
more effective cost management and higher EBITDA margin of new companies added  
to Ekspress Group in 2007.                                                      

Key figures characterising the activities of Ekspress Group in the third quarter
of 2008                                                                         
- 	Sales revenue EEK 295.0 million (EUR 18.9 million), year-over-year growth 15%
                                                                                
- 	Gross profit EEK 71.3 million (EUR 4.6 million), year-over-year growth 1.4%  
                                                                                
- 	EBITDA EEK 42.4 million (EUR 2.7 million), year-over-year growth 22%         
                                                                                
- 	EBIT EEK 25.8 million (EUR 1.6 million), year-over-year change 0%            
                                                                                
- 	Net profit EEK 12.0 million (0.8 million), year-over-year change -38%        

Key events of the third quarter of 2008                                         
- launching of the entertainment portal  www.mango.lv in Latvia                 
- launching of the entertainment portal  www.publik.ee                          
- launching of the environment of science and technology news www.forte.ee      
- opening of the bookstore in the recreation centre Tasku in Tartu under the    
brand “ Rahva Raamat”                                                           


Overview of the advertising market                                              
Besides a seasonally weak quarter, the decline of the advertising market in the 
third quarter was larger than expected and this primarily in the area of printed
ads. According to the survey conducted by TNS Emor, Internet advertising revenue
increased by 31% in the first nine months of 2008. The advertising revenue of   
magazines declined by 1% as compared to last year's level. The decline of the   
advertising revenue of newspapers which is mostly impacted by shrinkage of      
employment ads, real estate and automobile ads was larger, 8%. The decline of   
the advertising volume and the impact of the decline of advertising prices due  
to the recession of the economy was most noticeable in the third quarter when   
the advertising revenue of magazines decreased by 5% and that of newspapers     
decreased by 21% as compared to the same period last year. In light of the panic
following the crash of the financial markets in the third quarter and the       
overall economic depression, it may be considered as a decent result.           


Overview of the segments                                                        
In the third quarter of 2008, Ekspress Group continued to focus on its five     
principal segments: online media, publishing, printing services, book sales and 
information services. From 2008, the online media segment also includes web     
publications of AS Eesti Päevaleht, SL Õhtuleht AS and Eesti Ekspress Kirjastus 
AS as well as automobile, real estate and employment web environments of Eesti  
Ekspress Kirjastus AS which were previously included in the publishing segment. 
All web environments to be set up in the future are also included in the online 
media segment.                                                                  
In the third quarter of 2008, the largest revenue growth in absolute terms as   
compared to the same period of 2007 was attained in the online media segment    
attributable to the addition of Delfi Group to the Group in September last year.
The publishing of newspapers and magazines, partially related to the addition of
AS Maaleht in the Group in October 2007 as well as the segment of printing      
services where sales growth was attained through an increase of operating       
capacities related to the launching of a new printing press in October 2007     
significantly contributed to the sales growth of the third quarter.             
As of the balance sheet date, AS Delfi together with its Latvian, Lithuanian and
Ukraine subsidiaries manages the Estonian and Russian-language portals in       
Estonia, http://www.delfi.ee and rus.delfi.ee, the Latvian and Russia-language  
portals in Latvia http://www.delfi.lv and rus.delfi.lv, the Lithuanian and      
Russian-language portals in Lithuania http://www.delfi.lt, http://www.klubas.lt,
http://ru.delfi.lt) as well as the news portal in the Ukraine                   
http://www.delfi.ua.                                                            

Delfi continues to be the leading news portal in the Baltic States, the users of
which grew in all markets as compared to the same period of 2007. A total of 2.5
million people in the Baltic States and the Ukraine use Delfi portals. According
to the data by TNS Metrix, in Estonia Delfi continued to be the largest news    
portal in the third quarter with 484 000 unique users a month, growing its user 
base by 36 000 unique users as compared to the same period last year. According 
to the data by Gemius Audience, Delfi has 880 000 unique visitors a month in    
Lithuania and thereby continues the largest news portal there. According to the 
data by Gemius Audience, Delfi is also the largest news portal in Latvia with   
580 000 unique users a month.                                                   

In Estonia, AS Ekspress Kirjastus manages the automobile portal                 
www.ekspressauto.ee, the real estate portal www.ekspresskinnisvara.ee and the   
employment portal www.ekspressjob.ee. Of these three portals,                   
ekspresskinnisvara.ee experienced the fastest growth in the third quarter,      
almost doubling its user base as compared to the second quarter and reached over
50 000 unique visitors a week, thereby placing second among real estate portals.
The automobile portal ekspressauto.ee continued to secure its second place in   
the market, reaching an average of 26 000 unique visitors a week. The employment
portal ekpressjob.ee launched in the second quarter had an average of 14 000    
unique visitors in the third quarter.                                           
In June, 219 526 unique visitors visited the entertainment portal www.klubas.lt 
launched in Lithuania in the first quarter. In the third quarter, www.klubas.lt 
continued to increase its visitor base, rising from the 20th place among the    
most visited Lithuanian Internet environments in the second quarter to the 17th 
place. The number of unique visitors of www.klubas.lt reached 285 000 visitors a
month. The new web version of the largest monthly magazine “Panele” targeted at 
women, www.panele.lt which was launched in Lithuania in the second quarter rose 
to the 19th place among Internet environments in the third quarter. In July,    
Delfi launched a new entertainment portal www.mango.lv in Latvia in order to    
satisfy the increasing interest of Internet users in the field of entertainment.
The entertainment portal Publik.ee launched in Estonia in August became fast the
leading portal in its field, having an average of 205 000 unique visitors a     
week. In September, Delfi launched the environment of science and technology    
news in Estonia, Forte.ee which as of the end of the third quarter had 50 000   
unique visitors a week.                                                         
The goal of the Group's management is to strengthen the Group's market          
leadership position in the Internet markets of all Baltic States.               
The year-over-year sales growth of Delfi Group in the third quarter of 2008 was 
15%.  At the same time, EBITDA in the third quarter made up 88% of the level of 
the same period in 2007. The decline of EBITDA in the third quarter is related  
to the expenses of launching Delfi Ukraina which totalled EEK 1.7 million (EUR  
0.1 million) in the third quarter as well as two additional large development   
projects: klubas.lt in Lithuania totalling EEK 1.1 million (EUR 70 thousand) and
mango.lv in Latvia totalling EEK 0.4 million (EUR 25 thousand). Third quarter's 
expenses were also impacted by the termination fees paid to employees. Excluding
the costs related to the aforementioned three development projects, EBITDA grew 
by 46% in the third quarter as compared to the same period of 2007. The sales   
growth of Delfi Group in the first 9 months of 2008 was 24% as compared to the  
first 9 months of 2007 and EBITDA made up 96% of the level in the first 9 months
of 2007. Excluding the costs related to the aforementioned three development    
projects,  EBITDA growth in the first 9 months was 11%.                         
As advertising revenue is extremely sensitive to the economic environment, the  
cool-down of the economy has led to a decline of advertising revenue in the     
publishing segment. Due to the increase of advertising prices at the end of 2007
and beginning of 2008, the decline of advertising revenue was less pronounced.  
While advertising revenue from newspapers and magazines decreased by 11 and 5%, 
respectively, in the third quarter, the advertising revenue from the publishing 
segment of the Group declined by only 4.6%. Although the advertising revenue of 
publications decreased, the advertising revenue of their online environments    
increased. The growth of subscription of periodicals and single copy sales was  
24% and 2%, respectively, in the third quarter as compared to the same period of
2007. The cool-down of the economy impacted single copy sales of periodicals in 
the third quarter which without the impact of Maaleht decreased by 6% in the    
third quarter as compared to the third quarter of 2007. At the same time,       
subscriptions for almost all periodicals have increased. In the third quarter,  
growth without the impact of Maaleht totalled 4% in the publishing segment as   
compared to the same period of 2007. The stalling of the growth of advertising  
revenue has an important impact on the profit of the publishing segment, because
the gross margin of advertising revenue is significantly higher than that of    
subscriptions and single copy sales. EBITDA margin fell from 10% in the third   
quarter of 2007 to 8.6% in the same period of 2008.                             
In the segment of printing services, the sales growth of the printing company   
was a decent 7% in the third quarter of 2008 as compared to the same period of  
2007. Export turnover increased by 27% in the third quarter as a result of      
taking a new printing machine in use.                                           
Modernisation of the magazine production unit was commenced in the second half  
of 2007, the first stage of which comprised the launching of the magazine       
printing machine Rotoman and the new gluing line Kolbus in February 2008. The   
launching of the stitching line and the assembling and packing line for         
magazines planned for the third quarter has been postponed. The company plans to
apply for a technology grant through Enterprise Estonia in order to make this   
investment.                                                                     
In September, the company signed a letter of intent with a buyer to sell the    
6859 m2 unimproved land plot in its possession. According to the valuation      
report and the letter of intent, the land plot is valued at the market value of 
the investment property as of 30 September 2008. EBITDA growth of the printing  
company in the third quarter was 34% excluding the gain from the recognition of 
the investment property in the amount of EEK 7.8 million (EUR 0.5 million).     
With regard to book sales, 12% sales growth was attained in the third quarter.  
The growth of the retail sales of books was also 12%, achieved through the      
addition of new stores in the second half of 2007 as well as the opening of the 
new 554 m2 bookstore in the recreation centre Tasku in Tartu. The new store     
exceeded all expectations with regard to sales revenue in the first month after 
its opening and it has already become a preferred book store of the residents of
Tartu. Retail sales growth also demonstrates that the economic cool-down has not
had a major negative impact on the retail sales of books. Retail sales are      
expected to grow further in the fourth quarter due to the new bookstore opened  
in Rocca al Mare shopping centre on 1 October. The opening of a new bookstore in
Pärnu planned for the second half of 2008 has been postponed until 2009 due to a
delay by the developer.                                                         
In the third quarter of 2008, the sales revenue of information services was     
somewhat higher than in the same period of 2007, 4% growth. EBITDA in the third 
quarter of 2008 made up 83% of the 2007 level. However, EBITDA in the first 9   
months of 2008 made up only 49% of the level in the same period of 2007.  An end
has been put to the decline of EBITDA as a result of freezing the Bucharest     
located subsidiary's fixed costs such as agents' salaries, office expenses, etc.
in May until the grant of the service's short number. As the bids for short     
numbers have been postponed until further notice and the keeping of the long    
number in the current economic environment is ineffective, the Group's          
management has decided to exit the business of information services in Romania  
at the year-end 2008.                                                           
Profit                                                                          
Given the seasonal nature of the advertising business, the addition of AS       
Maaleht and Delfi Group has significantly increased the share of advertising    
revenue in the Group's sales revenue, therefore the impact of the seasonal      
nature on the Group's sales revenue and profit is larger than ever. The economic
cool-down which deepened in the third quarter had an impact on the Group's      
revenue and profit, manifesting itself in a decline of advertising revenue of   
newspapers and magazines as well as the related decline in profit.              
As compared to the 15% sales growth, direct costs increased by 17% in the third 
quarter as a result of which the gross margin declined from 26% to 24% in the   
third quarter of 2008. Besides appreciation of printing and distribution        
services, depreciation included in direct expenses has also increased.          
EBITDA totalled EEK 42.4 million (EUR 2.7 million) in the third quarter of 2008,
exceeding the result of the same period in 2007 by 22%. In the third quarter,   
EBIT reached EEK 25.8 million (EUR 1.6 million), staying at the same level as in
2007. In the third quarter, the operating margin was 8.7% (3rd quarter of 2007: 
10.0%). The slowdown of EBIT is due to higher depreciation related to the       
intangible assets added in the acquisition of Delfi and Maaleht and other       
investments made into fixed assets in 2007.                                     
The marketing expenses of the Group have increased due to the addition of new   
companies (AS Maaleht, Delfi Group, TeleTell) in the Group in the second half of
2007 as well as the launching of new products and marketing campaigns such as   
the launching of automobile, real estate and employment web environments and new
book project of Eesti Päevaleht. Year-over-year growth as compared to the first 
9 months of 2007 is 18% and as compared to the third quarter of 2007, 1%,       
attained through cutting optimistic marketing budgets.                          

Administrative expenses increased by 36% in the third quarter and 43% in the    
first 9 months as compared to the same period last year. The growth is 4% in the
third quarter and 4.5% in the first 9 months without the impact of new companies
added to the Group in 2007. Wages and salaries included in administrative       
expenses decreased by 7% in the first 9 months and by 13% in the third quarter  
as compared to the same period of 2007. As compared to the second quarter of    
2008, administrative expenses decreased by 5% in the third quarter, including   
payroll expense by 13%. The decline of general expenses has been attained       
through implementation of cost-cutting measures described below. The decline of 
wages and salaries has been attained through freezing of wage increases and     
laying off of employees.                                                        

Other operating income includes a gain of EEK 7.8 million (EUR 0.5 million) due 
to recognising the 6859 m2 unimproved land plot in Printall's possession as     
investment property at market value as of 30 September 2008 according to the    
letter of intent signed with the buyer of the land plot.                        

The Group's financial expenses reached EEK 14.4 million (EUR 0.9 million) in the
third quarter of 2008. Financial expenses were mostly made up of interest       
expenses in the amount of EEK 13.9 million (EUR 0.89 million) (3rd quarter of   
2007: EEK 5.5 million (EUR 0.35 million). Higher interest expenses are related  
to the loan in the amount of EEK 674.4 million (EUR 43.1 million) taken from the
syndicate of SEB, Sampo Bank and Nordea Bank for the acquisition of Delfi and   
Maaleht in the third quarter of 2007. As of 30 September, the outstanding loan  
balance is EEK 587.3 million (EUR 37.5 million).                                

The net profit (after taxes and minority interest) of Ekspress Group totalled   
EEK 12.0 million (EUR 0.8 million) in the third quarter. The net profit         
decreased by 38% as compared to the same period of 2007. In addition to the     
events impacting EBIT, the slowdown of net profit growth was also related to the
increase of interest expenses in connection with the syndicate loan.            

Under the conditions of deepening economic recession, we have continued with the
cost cutting programme introduced in the first quarter.  The main components of 
the programme include savings of paper and printing costs, savings of IT        
development costs and savings of payroll expenses. Of the measures related to   
cost savings of paper and printing costs, a decrease of newspaper pages,        
combining of inserts with the principal part of publication, etc. are worth     
mentioning. These measures manifest themselves in the savings of paper and      
printing costs. The savings of development costs are attained through           
replacement of outsourcing services with the implementation of Internet         
developments with own resources.  Of general expenses, training, representation,
parking, etc. other costs have been curbed in addition to the cost saving       
measures announced earlier. The biggest cost saving source is payroll expenses. 
Savings are achieved through postponement of wage increases, new employees are  
not hired to replace those who have left the company or they are recruited      
internally. Lay-offs of employees are also carried out. As of the date of       
preparing the interim report, a decision has been made to lay off 36 employees. 
Lay-offs relate mostly to Ajakirjade Kirjastus, Ekspress Kirjastus, Eesti       
Päevaleht and Delfi.  Due to the lay-off of employees in the third quarter,     
termination benefits are included in the payroll expenses of the third quarter. 
The effect of saving these payroll expenses will be achieved in the fourth      
quarter and hereinafter. More lay-offs are planned in the fourth quarter,       
related to a decline of advertising revenue as well as combining of support     
functions necessary for increasing business effectiveness.                      


Balance sheet and investments                                                   
As of 30 September 2008, the consolidated balance sheet total of Ekspress Group 
was EEK 1 703.7 million (EUR 108.9 million), increasing by 0.7% year-over-year. 
The assets and liabilities included in the balance sheet have increased as a    
result of the expansion of the Group and investments made to acquire fixed      
assets.                                                                         
As of 30 September 2008, current assets decreased by 4% year-over-year, reaching
EEK 267.0 million (EUR 17.1 million). As of 30 September 2007, current assets   
totalled EEK 277.7 million (EUR 17.7 million). Current liabilities increased by 
56.5% year-over-year, reaching EEK 425.7 million (EUR 27.2 million) at the end  
of September. Of current liabilities, borrowings increased the most, reaching   
EEK 179.4 million (EUR 11.5 million) at the end of September.                   
As of the end of September, the Group's long-term borrowings totalled EEK 663.1 
million (EUR 42.4 million), decreasing by 24% year-over-year. Of the long-term  
borrowings, bank loans constitute EEK 547.1 million (EUR 35.0 million) and the  
finance lease liability is EEK 113.0 million (EUR 7.2 million). Of the long-term
borrowings, the non-current portion of the loan taken by Ekspress Group from the
syndicate of SEB, Sampo Bank and Nordea Bank in the amount of EEK 674.4 (EUR    
43.1 million) in the third quarter of 2007 totals 497.1 million (EUR 31.8       
million). The total outstanding balance of the abovestated loan as of 30        
September 2008 was EEK 587.3 million (EUR 37.5 million).                        
Property, plant and equipment stood at EEK 392.0 million (EUR 25.1 million) as  
of the end of September, increasing by 4% year-over-year. As of the end of      
September, intangible assets stood at EEK 1 016.9 million (EUR 65.0 million),   
staying at the same level as last year. Of intangible assets,  EEK 824.8 million
(EUR 52.7 million) is related to the carrying value of trademarks, customer     
relations and software as well as goodwill which arose in the acquisition of    
Delfi Group. Investment property has increased due to the recognition of 6859 m2
unimproved land plot of Printall as the investment property at the market value 
of EEK 10.0 million (EUR 0.6 million) as of 30 September 2008.                  


Employees                                                                       
As of the end of September the Ekspress Group employed 2 361 people (As of 30   
September 2007: 2 344    people). The average number of employees in the first  
nine months of 2008 was 2 374 ( 9 months of 2007: 2 311). Over the first nine   
months of 2008, wages and salaries paid to the employees of the Ekspress Group  
totalled EEK 230.7 million (EUR 14.7 million), (9 months of 2007: EEK  162.5    
million  (EUR 10.4  million))*.                                                 

*proportional part from joint ventures                                          

Selected financial indicators                                                   

--------------------------------------------------------------------------------
| Performance indicators (%) |    |       9 months 2008 |        9 months 2008 |
--------------------------------------------------------------------------------
| Sales growth (%)           |           23%            |         18%          |
--------------------------------------------------------------------------------
| Gross profit margin (%)    |           26%            |         26%          |
--------------------------------------------------------------------------------
| Net profit margin (%)      |            5%            |          9%          |
|                            |                          |                      |
--------------------------------------------------------------------------------
| Equity ratio (%)           |           36%            |         32%          |
--------------------------------------------------------------------------------
| ROA (%)                    |            3%            |          8%          |
--------------------------------------------------------------------------------
| ROE (%)                    |            7%            |         18%          |
--------------------------------------------------------------------------------
| Operating profit margin    |            9%            |         11%          |
| (%)                        |                          |                      |
--------------------------------------------------------------------------------
| Liquidity ratio            |           0,63           |         1,02         |
|                            |                          |                      |
--------------------------------------------------------------------------------
| Debt equity ratio (%)      |           147%           |         174%         |
--------------------------------------------------------------------------------
| Financial leverage (%)     |           57%            |         59%          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                  2,33                  |                3,87                 |
--------------------------------------------------------------------------------
|                  0,15                  |                0,25                 |
--------------------------------------------------------------------------------
| Earnings per share (EEK)   |                                                 |
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
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| (sales 9 months 2008 -sales 9 months 2007) /                                 |
| sales 9 months 2007*100                                                      |
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| gross profit/ sales*100                                                      |
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| net profit/ sales*100                                                        |
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| equity / (equity + debt) * 100                                               |
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| net profit/assets *100                                                       |
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| net profit/equity *100                                                       |
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| operating profit/ sales*100                                                  |
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| current assets/current liabilities                                           |
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| interest bearing liabilities/equity*100                                      |
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| interest bearing liabilities-cash and cash equivalents/interest bearing      |
| liabilities + equity *100                                                    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EEK                                      |
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|                                     EUR                                      |
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| net profit/average number of shares           |                              |
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Consolidated interim balance sheet (unaudited)                                  
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EEK                                      |
--------------------------------------------------------------------------------
|                                   30.09.2008 |   31.12.2007 |     30.09.2007 |
--------------------------------------------------------------------------------
| (thousand)                          |                                        |
--------------------------------------------------------------------------------
| ASSETS                              |            |             |             |
--------------------------------------------------------------------------------
| Current assets                      |            |             |             |
--------------------------------------------------------------------------------
| Cash and cash equivalents           |     21 775 |      68 970 |      65 814 |
--------------------------------------------------------------------------------
| Other financial assets at fair      |      8 790 |       4 606 |       4 556 |
| value through profit or loss        |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |    166 208 |     165 828 |     150 008 |
--------------------------------------------------------------------------------
| Inventories                         |     70 204 |      66 161 |      57 297 |
--------------------------------------------------------------------------------
| Total current assets                |    266 977 |     305 565 |     277 675 |
--------------------------------------------------------------------------------
| Non-current assets                  |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |     13 880 |      13 671 |      10 143 |
--------------------------------------------------------------------------------
| Investments in associates           |        516 |         964 |       1 068 |
--------------------------------------------------------------------------------
| Investment property                 |     13 439 |       3 732 |       3 830 |
--------------------------------------------------------------------------------
| Property, plant and equipment (note |    392 023 |     404 880 |     377 359 |
| 4)                                  |            |             |             |
--------------------------------------------------------------------------------
| Intangible assets (note 4)          |  1 016 851 |   1 023 419 |   1 021 123 |
--------------------------------------------------------------------------------
| Total non-current assets            |  1 436 709 |   1 446 666 |   1 413 523 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                        |  1 703 686 |   1 752 231 |   1 691 198 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES |            |             |             |
--------------------------------------------------------------------------------
| Liabilities                         |            |             |             |
--------------------------------------------------------------------------------
| Current liabilities                 |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |    179 406 |     199 013 |      73 484 |
--------------------------------------------------------------------------------
| Trade and other payables            |    246 305 |     240 703 |     198 600 |
--------------------------------------------------------------------------------
| Total current liabilities           |    425 711 |     439 716 |     272 084 |
--------------------------------------------------------------------------------
| Non-current liabilities             |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |    660 126 |     741 585 |     867 966 |
--------------------------------------------------------------------------------
| Other long term liabilities         |      2 972 |          88 |       2 910 |
--------------------------------------------------------------------------------
| Total non-current liabilities       |    663 098 |     741 673 |     870 876 |
--------------------------------------------------------------------------------
| Total liabilities                   |  1 088 809 |   1 181 389 |   1 142 960 |
--------------------------------------------------------------------------------
| Equity                              |            |             |             |
--------------------------------------------------------------------------------
| Capital and reserves attributable   |            |             |             |
| to equity holders of the Parent     |            |             |             |
| company                             |            |             |             |
--------------------------------------------------------------------------------
| Share capital                       |    189 711 |     189 711 |     189 711 |
--------------------------------------------------------------------------------
| Share premium                       |    183 495 |     183 495 |     183 495 |
--------------------------------------------------------------------------------
| Reserves                            |     10 757 |      10 222 |      10 222 |
--------------------------------------------------------------------------------
| Retained earnings                   |    230 093 |     185 981 |     164 464 |
--------------------------------------------------------------------------------
| Currency translation reserve        |        533 |         480 |        -218 |
--------------------------------------------------------------------------------
| Total capital and reserves          |    614 589 |     569 889 |     547 674 |
| attributable to equity holders of   |            |             |             |
| the Parent company                  |            |             |             |
--------------------------------------------------------------------------------
| Minority interest                   |        288 |         953 |         564 |
--------------------------------------------------------------------------------
| Total equity                        |    614 877 |     570 842 |     548 238 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES        |  1 703 686 |   1 752 231 |   1 691 198 |
--------------------------------------------------------------------------------

Consolidated interim balance sheet (unaudited)                                  
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EUR                                      |
--------------------------------------------------------------------------------
|                                        30.09.2008 | 31.12.2007 |  30.09.2007 |
--------------------------------------------------------------------------------
|  (thousand)                         |                                        |
--------------------------------------------------------------------------------
| ASSETS                              |            |             |             |
--------------------------------------------------------------------------------
| Current assets                      |            |             |             |
--------------------------------------------------------------------------------
| Cash and cash equivalents           |      1 392 |       4 408 |       4 206 |
--------------------------------------------------------------------------------
| Other financial assets at fair      |        562 |         294 |         291 |
| value through profit or loss        |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |     10 624 |      10 598 |       9 587 |
--------------------------------------------------------------------------------
| Inventories                         |      4 487 |       4 228 |       3 662 |
--------------------------------------------------------------------------------
| Total current assets                |     17 065 |      19 528 |      17 746 |
--------------------------------------------------------------------------------
| Non-current assets                  |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |        884 |         874 |         647 |
--------------------------------------------------------------------------------
| Investments in associates           |         33 |          62 |          68 |
--------------------------------------------------------------------------------
| Investment property                 |        859 |         239 |         245 |
--------------------------------------------------------------------------------
| Property, plant and equipment (note |     25 055 |      25 877 |      24 118 |
| 4)                                  |            |             |             |
--------------------------------------------------------------------------------
| Intangible assets (note 4)          |     64 989 |      65 408 |      65 262 |
--------------------------------------------------------------------------------
| Total non-current assets            |     91 820 |      92 460 |      90 340 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                        |    108 885 |     111 988 |     108 086 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES |            |             |             |
--------------------------------------------------------------------------------
| Liabilities                         |            |             |             |
--------------------------------------------------------------------------------
| Current liabilities                 |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |     11 466 |      12 719 |       4 696 |
--------------------------------------------------------------------------------
| Trade and other payables            |     15 742 |      15 384 |      12 693 |
--------------------------------------------------------------------------------
| Total current liabilities           |     27 208 |      28 103 |      17 389 |
--------------------------------------------------------------------------------
| Non-current liabilities             |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |     42 190 |      47 396 |      55 473 |
--------------------------------------------------------------------------------
| Other long term liabilities         |        190 |           6 |         186 |
--------------------------------------------------------------------------------
| Total non-current liabilities       |     42 380 |      47 402 |      55 659 |
--------------------------------------------------------------------------------
| Total liabilities                   |     69 588 |      75 505 |      73 048 |
--------------------------------------------------------------------------------
| Equity                              |            |             |             |
--------------------------------------------------------------------------------
| Capital and reserves attributable   |            |             |             |
| to equity holders of the Parent     |            |             |             |
| company                             |            |             |             |
--------------------------------------------------------------------------------
| Share capital                       |     12 125 |      12 125 |      12 125 |
--------------------------------------------------------------------------------
| Share premium                       |     11 727 |      11 727 |      11 727 |
--------------------------------------------------------------------------------
| Reserves                            |        687 |         653 |         653 |
--------------------------------------------------------------------------------
| Retained earnings                   |     14 706 |      11 886 |      10 511 |
--------------------------------------------------------------------------------
| Currency translation reserve        |         34 |          31 |         -14 |
--------------------------------------------------------------------------------
| Total capital and reserves          |     39 279 |      36 422 |      35 002 |
| attributable to equity holders of   |            |             |             |
| the Parent company                  |            |             |             |
--------------------------------------------------------------------------------
| Minority interest                   |         18 |          61 |          36 |
--------------------------------------------------------------------------------
| Total equity                        |     39 297 |      36 483 |      35 038 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES        |    108 885 |     111 988 |     108 086 |
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Consolidated interim income statement (unaudited)                               
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|                                     EEK                                      |
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|                                          Q III  2008 |          Q III  2007 |
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| (thousand)                              |                                    |
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| Sales                                   |         295 046 |          257 639 |
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| Costs of sales                          |         223 781 |          191 127 |
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| Gross profit                            |          71 265 |           66 512 |
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| Marketing expenses                      |          13 099 |           12 982 |
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| Administrative expenses                 |          39 552 |           29 197 |
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| Other income                            |           8 250 |            1 410 |
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| Other expenses                          |           1 058 |            (100) |
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| Operating profit                        |          25 806 |           25 843 |
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| Interest income                         |             514 |            2 141 |
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| Interest expenses                       |        (13 924) |          (5 472) |
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| Currency exchange loss                  |              34 |             (10) |
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| Other financial income                  |             256 |              482 |
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| Other financial expenses                |           (478) |          (3 307) |
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| Financial income/expenses total         |        (13 598) |          (6 166) |
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| Share of profit (loss )of associates    |           (286) |              206 |
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| Profit before income tax                |          11 922 |           19 883 |
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| Income tax expense                      |            (44) |              626 |
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| PROFIT FOR THE YEAR                     |          11 966 |           19 257 |
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| Attributable to:                        |                 |                  |
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| Equity holders of the Parent company    |          11 966 |           19 137 |
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| Minority interest                       |               0 |              120 |
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| Basic and diluted earnings per share    |            0,63 |             1,02 |
| for profit attributable to the equity   |                 |                  |
| holders of the Company                  |                 |                  |
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Consolidated interim income statement (unaudited)                               
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|                                     EEK                                      |
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|                                           9 months 2008 |      9 months 2007 |
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| (thousand)                              |                                    |
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| Sales                                   |         963 280 |          784 647 |
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| Costs of sales                          |         714 447 |          578 732 |
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| Gross profit                            |         248 833 |          205 915 |
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| Marketing expenses                      |          46 209 |           39 018 |
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| Administrative expenses                 |         122 307 |           85 410 |
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| Other income                            |          13 835 |            3 347 |
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| Other expenses                          |           5 989 |            2 115 |
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| Operating profit                        |          88 163 |           82 719 |
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| Interest income                         |           1 765 |            4 963 |
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| Interest expenses                       |        (41 056) |          (9 849) |
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| Currency exchange loss                  |           (412) |             (61) |
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| Other financial income                  |             267 |            1 048 |
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| Other financial expenses                |           (958) |          (3 501) |
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| Financial income/expenses total         |        (40 394) |          (7 400) |
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| Share of profit (loss )of associates    |           (422) |            1 385 |
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| Profit before income tax                |          47 347 |           76 704 |
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| Income tax expense                      |           3 216 |            6 211 |
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| PROFIT FOR THE YEAR                     |          44 131 |           70 493 |
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| Attributable to:                        |                 |                  |
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| Equity holders of the Parent company    |          44 112 |           70 154 |
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| Minority interest                       |              19 |              339 |
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| Basic and diluted earnings per share    |            2,33 |             3,87 |
| for profit attributable to the equity   |                 |                  |
| holders of the Company                  |                 |                  |
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Consolidated interim income statement (unaudited)                               
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|                                     EUR                                      |
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|                                               Q III  2008 |     Q III  2007 |
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|  (thousand)                             |                                    |
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| Sales                                   |          18 857 |           16 466 |
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| Costs of sales                          |          14 302 |           12 215 |
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| Gross profit                            |           4 555 |            4 251 |
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| Marketing expenses                      |             837 |              830 |
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| Administrative expenses                 |           2 528 |            1 866 |
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| Other income                            |             527 |               90 |
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| Other expenses                          |              68 |              (6) |
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| Operating profit                        |           1 649 |            1 651 |
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| Interest income                         |              33 |              137 |
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| Interest expenses                       |           (890) |            (350) |
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| Currency exchange loss                  |               2 |              (1) |
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| Other financial income                  |              16 |               31 |
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| Other financial expenses                |            (31) |            (211) |
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| Financial income/expenses total         |           (870) |            (394) |
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| Share of profit (loss )of associates    |            (18) |               13 |
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| Profit before income tax                |             761 |            1 270 |
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| Income tax expense                      |             (3) |               40 |
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| PROFIT FOR THE YEAR                     |             764 |            1 230 |
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| Attributable to:                        |                 |                  |
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| Equity holders of the Parent company    |             765 |            1 223 |
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| Minority interest                       |               0 |                8 |
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| Basic and diluted earnings per share    |            0,04 |             0,06 |
| for profit attributable to the equity   |                 |                  |
| holders of the Company                  |                 |                  |
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Consolidated interim income statement (unaudited)                               
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|                                     EUR                                      |
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|                                            9 months 2008 |     9 months 2007 |
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| (thousand)                              |                                    |
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| Sales                                   |          61 565 |           50 148 |
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| Costs of sales                          |          45 661 |           36 988 |
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| Gross profit                            |          15 904 |           13 160 |
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| Marketing expenses                      |           2 953 |            2 494 |
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| Administrative expenses                 |           7 818 |            5 459 |
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| Other income                            |             884 |              214 |
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| Other expenses                          |             383 |              135 |
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| Operating profit                        |           5 634 |            5 286 |
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| Interest income                         |             113 |              317 |
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| Interest expenses                       |         (2 624) |            (629) |
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| Currency exchange loss                  |            (26) |              (4) |
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| Other financial income                  |              17 |               67 |
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| Other financial expenses                |            (61) |            (224) |
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| Financial income/expenses total         |         (2 581) |            (473) |
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| Share of profit (loss )of associates    |            (27) |               89 |
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| Profit before income tax                |           3 026 |            4 902 |
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| Income tax expense                      |             206 |              397 |
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| PROFIT FOR THE YEAR                     |           2 820 |            4 505 |
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| Attributable to:                        |                 |                  |
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| Equity holders of the Parent company    |           2 820 |            4 484 |
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| Minority interest                       |               1 |               22 |
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| Basic and diluted earnings per share    |            0,15 |             0,25 |
| for profit attributable to the equity   |                 |                  |
| holders of the Company                  |                 |                  |
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Anne Kallas                                                                
Member of the board                                                             
AS Ekspress Grupp 
Tel:                (+372) 669 8080        
e-mail: anne.kallas@egrupp.ee