BALTIKA

ANNOUNCEMENT



CONVERTIBLE BOND ISSUE



One of the proposals made to the AGM of Baltika is to issue 576,000 

convertible bonds with EEK 1 par value in three years.

Supervisory Board will nominate the persons in the management of

Baltika Group to receive the right for subscription. Owner of the

convertible bond has the right to exchange bonds for Baltika shares.

Hence, additional 576,000 shares will be issued in three years starting

from 2002.

Convertible bond issue is part of motivation program for management

aiming at stimulating employees to increase the share price in the long term.

Detailed information about terms and conditions of the convertible bond

issue will be published after AGM on April 6, 2001.





Ülle Järv

Management Board member

+372 6302 741