Börsiteade

Pealkiri

INTERIM MANAGEMENT REPORT

Teade

The sales revenue of Ekspress Group grew by 25% in the second quarter as        
compared to the same period last year. Such growth is mostly attributable to the
contribution of new companies that were added to Ekspress Group in 2007 as well 
as the sales growth of the existing companies.                                  

Key figures characterising the activities of Ekspress Group in the second       
quarter of 2008                                                                 
- 	Sales revenue EEK 346.9 million (EUR 22.2 million), year-over-year growth 25%
                                                                                
- 	Gross profit EEK 96.2 million (EUR 6.1 million), year-over-year growth 30%   
                                                                                
- 	EBITDA EEK 53.7 million (EUR 3.4 million), year-over-year growth 23%         
                                                                                
- 	EBIT EEK 37.7 million (EUR 2.4 million), year-over-year growth 6%            
                                                                                
- 	Net profit EEK 21.3 million (EUR 1.4 million), year-over-year change -35%    

Key events of the second quarter of 2008                                        
- launching of the employment portal www.ekspressjob.ee                         
- launching of the portal targeted at women www.naistemaailm.ee                 
- launching of the web version of Maaleht with a renewed concept www.maaleht.ee 
- launching of the web version of the monthly magazine targeted at women        
“Panele”, www.panele.lt in Lithuania                                            
- attaining of a strong position of the entertainment portal www.klubas.lt in   
Lithuania                                                                       


Overview of the advertising market                                              
According to the analysis prepared by the Estonian Newspaper Association, the   
advertising market for newspapers declined by an estimated 8% during the first  
six months of the year as compared to the first six months of 2007. During the  
same time period, the Internet advertising volumes exceeded by nearly a half the
same indicator of the first six months last year in Estonia. Media analyst      
Toomas Leito estimates that the advertising market for magazines declined by 9% 
during the first six months of the year as compared to the first six months of  
2007.                                                                           

Contrary to a cool-down of the Estonian advertising market, that of Lithuania   
showed signs of growth. According to the survey conducted by TNS Emor with      
regard to the Lithuanian advertising market, the gross revenue from Internet    
advertising (expressed in price list prices without the impact of discounts)    
increased by 76.3% in Lithuania. The advertising volume of newspapers declined  
by 1.9% during the first six months of the year, but it increased a decent 18%  
in the advertising market for magazines (where a subsidiary of the Group        
operates) as compared to the first six months of 2007.                          

Overview by segments                                                            
In the second quarter 2008, the activities of Ekspress Group continued to focus 
on 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 second 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. 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 made a significant            
contribution to the sales growth. Decent growth of book sales attained through  
the expansion of sales space as well as retail sales growth is also worth       
mentioning.                                                                     
As of the balance sheet date, AS Delfi manages together with its Latvian and    
Lithuanian subsidiaries the Estonian and Russian-language portals in Estonia,   
http://www.delfi.ee and rus.delfi.ee, the Latvian and Russian-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. AS Ekspress Kirjastus manages the Estonian automobile      
portal www.ekspressauto.ee, the real estate portal  www.ekspresskinnisvara.ee   
and the employment portal www.ekspressjob.ee.                                   
In addition to the new combined automobile and real estate environments launched
in collaboration with Delfi Eesti and Eesti Ekspress in the first quarter of    
2008, the employment portal www.ekspressjob.ee was added in the second quarter. 
In June, 13 815 unique visitors visited on average the new employment portal. In
June, 219 526 unique visitors visited the entertainment portal  www.klubas.lt   
launched in Lithuania last quarter. According to the survey by Gemius Audience, 
www.klubas.lt has become one of the 20 most visited portals. In the second      
quarter, we launched the new web version www.panele.lt of the largest monthly   
magazine “Panele“ targeted at women in Lithuania. In Estonia, we launched the   
web version of Maaleht with a renewed concept www.maaleht.ee. In June, major    
preparations were carried out for the launching of the new entertainment portal 
www.mango.lv in Latvia scheduled in July 2008. In August, Delfi will launch a   
new entertainment portal  “Publik” in Estonia in order to satisfy the growing   
interest of Internet users in the entertainment area. The Group's management    
intends to strengthen the Group's market leadership position in the Internet    
markets of all Baltic States.                                                   
In the second quarter of 2008, the year-over-year sales growth of Delfi Group   
reached 28%. In the second quarter of 2008, EBITDA growth was a modest 10%  due 
to the expenses related to the launching of Delfi Ukraina and www.klubas.lt,    
EBITDA margin was 37% as expected.                                              
As advertising revenue is sensitive to the economic environment, the cool-down  
of the economy has led to a decline of the 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. The  
advertising market for newspapers and magazines declined by almost 9% in the    
first six months of the year, whereas the advertising revenue of the publishing 
segment of the Group declined by only 0.8%. The growth in the subscription and  
single copy sale of periodicals was 23% and 9%, respectively, as compared to    
same period of 2007. The cool-down of the economy has somewhat impacted the     
single copy sale of periodicals which without the impact of Maaleht decreased by
1% in the second quarter as compared to the second quarter of 2007. At the same 
time, subscriptions for all periodicals have increased. In the second quarter,  
growth without the impact of Maaleht totalled 4% in the publishing segment as   
compared to the same period of 2007. The slow-down 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. EBITDA margin fell from 14.5% in the second quarter of 2007 to   
13.6% in the same period of 2008.                                               
In the segment of printing services, the sales growth of the printing company   
was a decent 11% in the second quarter of 2008 as compared to the same period of
2007. Export turnover increased by 29% due to taking the new printing machine in
use. EBITDA growth was 17%.                                                     
Modernisation of the magazine production unit was commenced in the second half  
of 2007, the first stage of which comprised the launching 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 second quarter has been postponed. In the third       
quarter, Printall plans to acquire a new folding machine and the system for     
filtering cutting waste.                                                        

With regard to book sales, 11% sales growth was attained in the second quarter. 
The growth of the retail sales of books totalled 22%, achieved through the      
addition of new stores in the second half of 2007, demonstrating 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 second half of 2008 due 
to the opening of new stores in Tartu, Tallinn and Pärnu. The opening of new    
stores will increase the sales space of Rahva Raamat by more than 1500 m2.      
The sales revenue of information services was at the same level in the second   
quarter of 2008 as in the same period of 2007; the sales growth in the first six
months of the year was 12% as compared to the same period of 2007. EBITDA in the
first six months of the year comprised 14% of the level in the same period of   
2007. The decline of EBITDA is related to larger-than-forecast losses of the    
subsidiary of AS Ekspress Hotline located in Romania. From May, a major share of
the fixed costs of the subsidiary located in Bucharest, such as agents'         
salaries, office expenses, etc. have been frozen until the grant of the         
service's short number. The competitions for short numbers are planned for      
September 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 impact  
of the economic cool-down which occurred in the second quarter manifested itself
in modest growth of advertising revenue and a decline of profit.                
As compared to the sales growth of 25%, direct costs increased by 23% in the    
second quarter as a result of which the gross margin increased from 26.6% to    
27.7% in the second quarter of 2008.                                            
EBITDA totalled EEK 53.7 million (EUR 3.4 million) in the second quarter of     
2008, exceeding the result of the same period in 2007 by 23%. In the second     
quarter, EBIT reached EEK 37.7 million  (EUR 2.4 million), increasing by 6% as  
compared to the same period last year. In the second quarter, the operating     
margin was 10.9% (2nd quarter of 2007: 12.8%). 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 and the launching of new products. Year-over-year growth as compared to the
second quarter of 2007 was 33%, and 15% without the impact of new companies.    
Administrative expenses increased by 50% in the second quarter as compared to   
the same period last year. The growth is only 4% without the impact of new      
companies added to the Group in 2007. Growth is mostly attributable to labour   
expenses, which comprise 38% of the level of the second quarter of 2007. Of this
percentage, 31% of it is attributable to the addition of new companies and 7% to
a higher number of employees in web publications of newspapers and magazines as 
well as raising of wages in 2007. Depreciation also increased more than twofold,
related to the addition of intangible assets in the acquisition of Delfi and    
Maaleht.                                                                        
The Group's financial expenses reached EEK 13.5 million (EUR 0.9 million) in the
second quarter of 2008. Financial expenses are mostly made up of interest       
expenses in the amount of EEK 13.0 million   (EUR 0.8 million) (2nd quarter of  
2007: EEK 1.8 million (EUR 0.1 million)). The growth of interest expenses is    
related to the loan in the amount of EEK 684.4 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.                                 
The net profit (after taxes and minority interest) of Ekspress Group totalled   
EEK 21.3 million (EUR 1.4 million) in the second quarter. The net profit        
decreased by 35% as compared to the same period of 2007. In addition to the     
events impacting EBIT, the growth slowdown also related to the increase of      
interest expenses in connection with the syndicate loan.                        

In a situation in which the economic growth in the first quarter of the 2008 was
only 0.1% and with great probability, it was close to zero in the second quarter
and will be close to zero in the following quarters, the Group has prepared a   
plan for additional cost cutting. Of the measures related to cost savings in the
publishing segment, a decrease of newspaper pages, partial replacement of colour
printing with black and white printing, uniting of inserts with the principal   
part of publication, etc. are worth mentioning. These measures manifest         
themselves in the saving of paper and printing costs. Of fixed costs, the most  
important source of savings is labour expenses. Cost 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. Due to the lay-off of employees in the second   
quarter, termination benefits are included in the labour expenses of the second 
quarter. The effect of labour expenses will be achieved in the third quarter and
hereinafter. New cost-saving measures include postponing of some investment,    
carrying out Internet development with own resources instead of previous        
outsourcing, additional cutting of labour expenses, etc.                        

Balance sheet and investments                                                   
As of 30 June 2008, the consolidated balance sheet total of Ekspress Group was  
EEK 1 709.4 million (EUR 109.2 million), increasing by 90% in a 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.            
Current assets decreased by 27% year-over-year, reaching EEK 276.1 million (EUR 
17.6 million) as of 30 June 2008. As of 30 June 2007, current assets totalled   
EEK 378.2 million (EUR 24.2 million), including the cash from the public        
offering of shares in the second quarter of 2007. Of current assets, accounts   
receivable and inventories increased the most, reaching EEK 112.3 million (EUR  
7.2 million) and EEK 76.5 million (EUR 4.9 million), respectively, for the      
year-over-year growth of 40% and 64%, respectively. The increase of inventories 
is related to the addition of Maaleht in October 2007, expansion of Rahva Raamat
and expansion of the production of Printall. Current liabilities increased by   
1.3 times year-over-year, reaching EEK 434.5 million (EUR 27.8 million). Of     
current liabilities, borrowings increased the most, reaching EEK 187.7 million  
(EUR 12.0 million) at the end June.                                             
As of the end of June, the Group's long-term borrowings totalled EEK 672.5      
million (EUR 43.0 million), increasing by 2.6 times  year-over-year. Of         
long-term borrowings, bank loans constitute EEK 560.7 million (EUR 35.8 million)
and finance lease liability contributes EEK 111.1 million (EUR 7.1 million). The
increase of both short-term and long-term borrowings is 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 in the second quarter of 2007. The outstanding  
loan balance as of 30 June 2008 was EEK 587.3 million (EUR 37.5 million).       
Property, plant and equipment were EEK 395.5 million (EUR 25.3 million) as of   
the end of June, increasing by 9% year-over-year. Intangible assets were EEK    
1 019.9 million (EUR 65.2 million) as of the end of June, increasing by 6.1     
times in a year. Of the increase of intangible assets, EEK 827.3 million (EUR   
52.9 million) is related to the carrying value of trademarks, customer relations
and software as well as goodwill which arose in the acquisition. The carrying   
value of the trademark and goodwill which arose in the acquisition of Maaleht   
amounted to EEK 39.3 million (EUR 2.5 million).                                 


Employees                                                                       
As of the end of June the Ekspress Group employed 2 311 people (As of 30 June   
2007: 2 025 people). The average number of employees in the first half year of  
2008 was 2 329 (HY I 2007: 1 992 ). In the first half year of 2008, wages and   
salaries paid to the employees of the Ekspress Group totalled EEK 160.2 million 
(EUR 10.2 million), (HY I 2007: EEK  107.4 million  (EUR 6.7 million))*.        

*proportional part from joint ventures                                          

Selected financial indicators                                                   

--------------------------------------------------------------------------------
| Financial indicators (%)        |       |    I HY 2008     |    I HY 2007    |
--------------------------------------------------------------------------------
| Sales growth (%)                    |         27%          |       18%       |
--------------------------------------------------------------------------------
| Gross profit margin (%)             |         27%          |       26%       |
--------------------------------------------------------------------------------
| Net profit margin (%)               |          5%          |       10%       |
--------------------------------------------------------------------------------
| Equity ratio (%)                    |         35%          |       59%       |
--------------------------------------------------------------------------------
| ROA (%)                             |          2%          |       3%        |
--------------------------------------------------------------------------------
| ROE (%)                             |          5%          |       6%        |
--------------------------------------------------------------------------------
| Operating profit margin (%)         |          9%          |       11%       |
--------------------------------------------------------------------------------
| Liquidity ratio                     |         0,64         |      2,01       |
|                                     |                      |                 |
--------------------------------------------------------------------------------
| Debt equity ratio (%)           |           151%           |       40%       |
--------------------------------------------------------------------------------
| Financial leverage (%)          |           58%            |       6%        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                                1,69       |         3,09     |
--------------------------------------------------------------------------------
|   Earnings per share (EEK)                     0,11    |           0,20      |
--------------------------------------------------------------------------------
|       |                                            |
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| (sales IHY 2008 -sales  IHY 2007) /                                          |
| sales IHY 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                                                   |
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Consolidated interim balance sheet (unaudited)                                  
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EEK                                      |
--------------------------------------------------------------------------------
|                                    30.06.2008 |    31.12.2007 |   30.06.2007 |
--------------------------------------------------------------------------------
| (thousand)                          |                                        |
--------------------------------------------------------------------------------
| ASSETS                              |            |             |             |
--------------------------------------------------------------------------------
| Current assets                      |            |             |             |
--------------------------------------------------------------------------------
| Cash and cash equivalents           |     28 792 |      68 970 |     161 410 |
--------------------------------------------------------------------------------
| Other financial assets at fair      |      3 908 |       4 606 |       5 019 |
| value through profit or loss        |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |    166 870 |     165 828 |     165 225 |
--------------------------------------------------------------------------------
| Inventories                         |     76 533 |      66 161 |      46 532 |
--------------------------------------------------------------------------------
| Total current assets                |    276 103 |     305 565 |     378 186 |
--------------------------------------------------------------------------------
| Non-current assets                  |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |     13 623 |      13 671 |       9 707 |
--------------------------------------------------------------------------------
| Investments in associates           |        802 |         964 |         862 |
--------------------------------------------------------------------------------
| Investment property                 |      3 537 |       3 732 |       3 928 |
--------------------------------------------------------------------------------
| Property, plant and equipment (note |    395 472 |     404 880 |     363 472 |
| 4)                                  |            |             |             |
--------------------------------------------------------------------------------
| Intangible assets (note 4)          |  1 019 854 |   1 023 419 |     144 452 |
--------------------------------------------------------------------------------
| Total non-current assets            |  1 433 288 |   1 446 666 |     522 421 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                        |  1 709 391 |   1 752 231 |     900 607 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES |            |             |             |
--------------------------------------------------------------------------------
| Liabilities                         |            |             |             |
--------------------------------------------------------------------------------
| Current liabilities                 |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |    187 669 |     199 013 |      13 995 |
--------------------------------------------------------------------------------
| Trade and other payables            |    246 817 |     240 703 |     173 769 |
--------------------------------------------------------------------------------
| Total current liabilities           |    434 486 |     439 716 |     187 764 |
--------------------------------------------------------------------------------
| Non-current liabilities             |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |    671 806 |     741 585 |     182 928 |
--------------------------------------------------------------------------------
| Other long term liabilities         |        734 |          88 |         716 |
--------------------------------------------------------------------------------
| Total non-current liabilities       |    672 540 |     741 673 |     183 644 |
--------------------------------------------------------------------------------
| Total liabilities                   |  1 107 026 |   1 181 389 |     371 408 |
--------------------------------------------------------------------------------
| 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                            |     10 515 |      10 222 |      10 222 |
--------------------------------------------------------------------------------
| Retained earnings                   |    218 126 |     185 981 |     145 326 |
--------------------------------------------------------------------------------
| Currency translation reserve        |        230 |         480 |           0 |
--------------------------------------------------------------------------------
| Total capital and reserves          |    602 077 |     569 889 |     528 754 |
| attributable to equity holders of   |            |             |             |
| the Parent company                  |            |             |             |
--------------------------------------------------------------------------------
| Minority interest                   |        288 |         953 |         445 |
--------------------------------------------------------------------------------
| Total equity                        |    602 365 |     570 842 |     529 199 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES        |  1 709 391 |   1 752 231 |     900 607 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EUR                                      |
--------------------------------------------------------------------------------
|                                     30.06.2008 |   31.12.2007 |    30.06.2007
| 
--------------------------------------------------------------------------------
| (thousand)                          |                                        |
--------------------------------------------------------------------------------
| ASSETS                              |            |             |             |
--------------------------------------------------------------------------------
| Current assets                      |            |             |             |
--------------------------------------------------------------------------------
| Cash and cash equivalents           |      1 840 |       4 408 |      10 316 |
--------------------------------------------------------------------------------
| Other financial assets at fair      |        250 |         294 |         321 |
| value through profit or loss        |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |     10 665 |      10 598 |      10 560 |
--------------------------------------------------------------------------------
| Inventories                         |      4 891 |       4 228 |       2 974 |
--------------------------------------------------------------------------------
| Total current assets                |     17 646 |      19 528 |      24 171 |
--------------------------------------------------------------------------------
| Non-current assets                  |            |             |             |
--------------------------------------------------------------------------------
| Trade and other receivables         |        870 |         874 |         619 |
--------------------------------------------------------------------------------
| Investments in associates           |         51 |          62 |          55 |
--------------------------------------------------------------------------------
| Investment property                 |        226 |         239 |         251 |
--------------------------------------------------------------------------------
| Property, plant and equipment (note |     25 275 |      25 877 |      23 230 |
| 4)                                  |            |             |             |
--------------------------------------------------------------------------------
| Intangible assets (note 4)          |     65 181 |      65 408 |       9 232 |
--------------------------------------------------------------------------------
| Total non-current assets            |     91 603 |      92 460 |      33 387 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                        |    109 249 |     111 988 |      57 558 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES |            |             |             |
--------------------------------------------------------------------------------
| Liabilities                         |            |             |             |
--------------------------------------------------------------------------------
| Current liabilities                 |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |     11 994 |      12 719 |         894 |
--------------------------------------------------------------------------------
| Trade and other payables            |     15 774 |      15 384 |      11 106 |
--------------------------------------------------------------------------------
| Total current liabilities           |     27 768 |      28 103 |      12 000 |
--------------------------------------------------------------------------------
| Non-current liabilities             |            |             |             |
--------------------------------------------------------------------------------
| Borrowings (note 5)                 |     42 936 |      47 396 |      11 691 |
--------------------------------------------------------------------------------
| Other long term liabilities         |         47 |           6 |          46 |
--------------------------------------------------------------------------------
| Total non-current liabilities       |     42 983 |      47 402 |      11 737 |
--------------------------------------------------------------------------------
| Total liabilities                   |     70 751 |      75 505 |      23 737 |
--------------------------------------------------------------------------------
| 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                            |        672 |         653 |         653 |
--------------------------------------------------------------------------------
| Retained earnings                   |     13 941 |      11 886 |       9 288 |
--------------------------------------------------------------------------------
| Currency translation reserve        |         15 |          31 |           0 |
--------------------------------------------------------------------------------
| Total capital and reserves          |     38 480 |      36 422 |      33 793 |
| attributable to equity holders of   |            |             |             |
| the Parent company                  |            |             |             |
--------------------------------------------------------------------------------
| Minority interest                   |         18 |          61 |          28 |
--------------------------------------------------------------------------------
| Total equity                        |     38 498 |      36 483 |      33 821 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES        |    109 249 |     111 988 |      57 558 |
--------------------------------------------------------------------------------

Consolidated interim income statement (unaudited)                               
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EEK                                      |
--------------------------------------------------------------------------------
|                                                 Q II  2008 |      Q II  2007 |
--------------------------------------------------------------------------------
| (thousand)                                 |                                 |
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| Sales                                      |        346 897 |        277 415 |
--------------------------------------------------------------------------------
| Costs of sales                             |        250 718 |        203 512 |
--------------------------------------------------------------------------------
| Gross profit                               |         96 179 |         73 903 |
--------------------------------------------------------------------------------
| Marketing expenses                         |         15 853 |         11 958 |
--------------------------------------------------------------------------------
| Administrative expenses                    |         41 553 |         27 788 |
--------------------------------------------------------------------------------
| Other income                               |          1 373 |          1 685 |
--------------------------------------------------------------------------------
| Other expenses                             |          2 430 |            376 |
--------------------------------------------------------------------------------
| Operating profit                           |         37 716 |         35 466 |
--------------------------------------------------------------------------------
| Interest income                            |            432 |          1 112 |
--------------------------------------------------------------------------------
| Interest expenses                          |       (13 042) |        (1 777) |
--------------------------------------------------------------------------------
| Currency exchange loss                     |          (115) |           (35) |
--------------------------------------------------------------------------------
| Other financial income                     |          (163) |            272 |
--------------------------------------------------------------------------------
| Other financial expenses                   |          (305) |          (190) |
--------------------------------------------------------------------------------
| Financial income/expenses total            |       (13 193) |          (618) |
--------------------------------------------------------------------------------
| Share of profit (loss )of associates       |             62 |            845 |
--------------------------------------------------------------------------------
| Profit before income tax                   |         24 585 |         35 693 |
--------------------------------------------------------------------------------
| Income tax expense                         |          3 261 |          3 021 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR                        |         21 324 |         32 672 |
--------------------------------------------------------------------------------
| Attributable to:                           |                |                |
--------------------------------------------------------------------------------
| Equity holders of the Parent company       |         21 331 |         32 612 |
--------------------------------------------------------------------------------
| Minority interest                          |            (7) |             60 |
--------------------------------------------------------------------------------
| Basic and diluted earnings per share for   |           1,12 |           1,73 |
| profit attributable to the equity holders  |                |                |
| of the Company                             |                |                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                     EEK                                      |
--------------------------------------------------------------------------------
|                                                  HY I 2008 |       HY I 2007 |
--------------------------------------------------------------------------------
| (thousand)                                 |                                 |
--------------------------------------------------------------------------------
| Sales                                      |        668 235 |        527 007 |
--------------------------------------------------------------------------------
| Costs of sales                             |        490 666 |        387 604 |
--------------------------------------------------------------------------------
| Gross profit                               |        177 569 |        139 403 |
--------------------------------------------------------------------------------
| Marketing expenses                         |         33 111 |         26 036 |
--------------------------------------------------------------------------------
| Administrative expenses                    |         82 755 |         56 213 |
--------------------------------------------------------------------------------
| Other income                               |          6 130 |          2 908 |
--------------------------------------------------------------------------------
| Other expenses                             |          4 932 |          2 215 |
--------------------------------------------------------------------------------
| Operating profit                           |         62 901 |         57 847 |
--------------------------------------------------------------------------------
| Interest income                            |            709 |          1 849 |
--------------------------------------------------------------------------------
| Interest expenses                          |       (27 132) |        (4 378) |
--------------------------------------------------------------------------------
| Currency exchange loss                     |          (447) |           (50) |
--------------------------------------------------------------------------------
| Other financial income                     |             11 |            567 |
--------------------------------------------------------------------------------
| Other financial expenses                   |          (480) |          (194) |
--------------------------------------------------------------------------------
| Financial income/expenses total            |       (27 339) |        (2 206) |
--------------------------------------------------------------------------------
| Share of profit (loss )of associates       |          (137) |          1 179 |
--------------------------------------------------------------------------------
| Profit before income tax                   |         35 425 |         56 820 |
--------------------------------------------------------------------------------
| Income tax expense                         |          3 261 |          5 585 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR                        |         32 164 |         51 235 |
--------------------------------------------------------------------------------
| Attributable to:                           |                |                |
--------------------------------------------------------------------------------
| Equity holders of the Parent company       |         32 145 |         51 016 |
--------------------------------------------------------------------------------
| Minority interest                          |             19 |            219 |
--------------------------------------------------------------------------------
| Basic and diluted earnings per share for   |           1,69 |           3,09 |
| profit attributable to the equity holders  |                |                |
| of the Company                             |                |                |
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|                                     EUR                                      |
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|                                               Q II  2008 |        Q II  2007 |
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| (thousand)                                 |                                 |
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| Sales                                      |         22 171 |         17 730 |
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| Costs of sales                             |         16 024 |         13 007 |
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| Gross profit                               |          6 147 |          4 723 |
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| Marketing expenses                         |          1 013 |            764 |
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| Administrative expenses                    |          2 656 |          1 776 |
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| Other income                               |             88 |            108 |
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| Other expenses                             |            155 |             24 |
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| Operating profit                           |          2 410 |          2 267 |
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| Interest income                            |             28 |             71 |
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| Interest expenses                          |          (834) |          (114) |
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| Currency exchange loss                     |            (7) |            (2) |
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| Other financial income                     |           (10) |             17 |
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| Other financial expenses                   |           (19) |           (12) |
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| Financial income/expenses total            |          (843) |           (39) |
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| Share of profit (loss )of associates       |              4 |             54 |
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| Profit before income tax                   |          1 571 |          2 281 |
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| Income tax expense                         |            208 |            193 |
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| PROFIT FOR THE YEAR                        |          1 363 |          2 088 |
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| Attributable to:                           |                |                |
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| Equity holders of the Parent company       |          1 363 |          2 084 |
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| Minority interest                          |              0 |              4 |
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| Basic and diluted earnings per share for   |           0,07 |           0,11 |
| profit attributable to the equity holders  |                |                |
| of the Company                             |                |                |
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|                                     EUR                                      |
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|                                              HY I 2008 |           HY I 2007 |
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| (thousand)                                 |                                 |
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| Sales                                      |        42 708 |          33 682 |
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| Costs of sales                             |        31 359 |          24 772 |
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| Gross profit                               |        11 349 |           8 909 |
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| Marketing expenses                         |         2 116 |           1 664 |
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| Administrative expenses                    |         5 289 |           3 593 |
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| Other income                               |           392 |             186 |
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| Other expenses                             |           315 |             142 |
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| Operating profit                           |         4 020 |           3 697 |
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| Interest income                            |            45 |             118 |
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| Interest expenses                          |       (1 734) |           (280) |
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| Currency exchange loss                     |          (29) |             (3) |
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| Other financial income                     |             1 |              36 |
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| Other financial expenses                   |          (31) |            (12) |
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| Financial income/expenses total            |       (1 747) |           (141) |
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| Share of profit (loss )of associates       |           (9) |              75 |
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| Profit before income tax                   |         2 264 |           3 631 |
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| Income tax expense                         |           208 |             357 |
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| PROFIT FOR THE YEAR                        |         2 056 |           3 275 |
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| Attributable to:                           |               |                 |
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| Equity holders of the Parent company       |         2 055 |           3 261 |
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| Minority interest                          |             1 |              14 |
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| Basic and diluted earnings per share for   |          0,11 |            0,20 |
| profit attributable to the equity holders  |               |                 |
| of the Company                             |               |                 |
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Additional information:
Priit Leito
Chairman of the Board
AS Ekspress Grupp
Phone: +372 6 698 340
E-mail: priit@egrupp.ee