Change of flag on Regina Baltica

AS Tallink Grupp, Stock Exchange Release
28.08.2006

Change of flag on Regina Baltica

AS Tallink Grupp announces that as from today the cruise ferry Regina Baltica which operates between Riga and Stockholm will sail under the Latvian flag. The vessel has been deleted from the Bareboat Chartered Ships Register kept by Estonian Maritime Agency and has been registered in the Latvian Bareboat Chartered Ships Register. The main register of the vessel remains in Cyprus.

Latvian legislation is more favourable and economically more beneficial for the companies and for the seamen working on the vessels which sail under the Latvian flag. The main difference comparing to Estonia are the Latvian state subsidies of the social and income taxes payable on the salaries of Latvian seamen. On the basis of current mixed personnel of Estonians and Latvians on Regina Baltica the estimated annual savings for Tallink would be 2 million EEK and the net salaries receivable by the Latvian seamen would be approximately 2.5 million EEK higher per year. The savings would possibly even increase in relation to our plans to increase the proportion of the Latvians working on the vessel.

Janek Stalmeister
AS Tallink Grupp
Financial Director
Tel: +372 6409 800