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Comment on signing of the Memorandum of Understanding for the development of conference and concert centre with passenger port in Tallinn

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According  to  the  exchange  release  of  Tallink Grupp published today and the
information      disclosed      at      their     joint     press     conference
(https://www.youtube.com/watch?v=nSyXyWUV9nU&feature=youtu.be),  Tallink  Group,
Infortar  and the City of Tallinn signed  today a memorandum of understanding to
develop the city owned architectural monument Tallinn City Hall and its adjacent
properties into a top conference and concert centre in the Baltic Sea region and
announced the intentions of developing a passenger port on the Tallinn City Hall
property.

We welcome activities aimed at redeveloping the Tallinn City Hall and building a
conference  and concert center which is also  well linked to Tallinna Sadam real
estate business development plans in the Old City Harbor to create an attractive
seafront space for tourists and citizens.

Based on the published information, it is very difficult to assess the potential
impact  of the proposed project on  the commercial activities of Tallinna Sadam,
as  the idea is at a very early stage. The first planned activities are to carry
out  feasibility studies for the project and only then the implementation of the
project  will be decided. Therefore, the  management of Tallinna Sadam estimates
that there is no short-term impact on Tallinna Sadam arising from the agreement.
It  is only after the feasibility of  the planned development and its extent has
been  clarified that the possible long-term impact  of the agreement can be more
accurately predicted. However, based on the information published so far, we can
say  that the  potential development  would affect  (if realized and unlikely to
happen  before  5 years)  only  some  of  Tallink's  ships  currently calling at
Tallinna Sadam. Considering the previously set goals by Tallinna Sadam, the city
and  Tallink to remove heavy  goods vehicles from the  city center and to reduce
the  congestion,  and  recent  opening  of  the  new-built Reidi Road, we do not
consider  it likely that large volumes of  heavy duty vehicles and cars could be
serviced at the planned port of Tallinn City Hall.

In  recent  years,  Tallinna  Sadam  has  significantly  improved  the  level of
servicing  passenger ships  and passengers  through innovative solutions, making
the  service faster  and more  convenient. For  example, Smart  Port's automatic
traffic control solution for passengers with vehicles, and automatic mooring and
on  shore power systems which  will be completed this  year. We will continue to
develop  our  services  and  increase  our  competitiveness  through  innovative
solutions.

Tallinna  Sadam is one of the largest cargo- and passenger port complexes in the
Baltic  Sea region,  which in  2019 serviced 10.64 million  passengers and 19.9
million  tons of cargo. In addition  to passenger and freight services, Tallinna
Sadam  group also  operates in  shipping business  via its  subsidiaries - OÜ TS
Laevad  provides ferry  services between  the Estonian  mainland and the largest
islands,  and OÜ  TS Shipping  charters its  multifunctional vessel  Botnica for
icebreaking  and construction services in  Estonia and offshore projects abroad.
Tallinna  Sadam group  is also  a shareholder  of an  associate AS Green Marine,
which  provides waste management services. Tallinna Sadam group's sales in 2018
totaled  EUR 130.6 million, adjusted EBITDA EUR  74.4 million and net profit EUR
24.4 million.

Additional information:

Marju Zirel
Head of Investor Relations
AS Tallinna Sadam
[email protected] (mailto:[email protected])