Baltika                       NEWS RELEASE                      09/26/2003



PRESENTATION "BUSINESS PLAN FOR 2004"



In Äripäev Conference " Business plan 2004" presentation

"Baltika Group 2004: growth continues" comments Baltika

development plans for 2004 as follows:

-    BG continues realization of retail trading and brand

   development oriented growth strategy

-    BG is able to grow in 2004 at least with current long term

15% velocity

-    The turnover raise is supported by Central and

Eastern Europe general economic development and creation

of joint venture to enter Russian retail market in 2004

-    The presumption for turnover raise is opening of new

stores during 2004, which increase sale area by 25 -28 %,

and planned efficiency raise of current sale area

-    BG retail system by the end of 2004 by markets:

     Baltic States    -    47 stores

     Ukraine          -    12 stores

     Poland           -     7 stores

     Russia           -    11 stores

     And by brands:

     Monton           -    33 stores

     CHR/Evermen      -    21 stores

     Baltman          -    18 stores

     Factory Outlet   -      6 stores

-    BG investments in 2004 will be in amount of 20 mil

   EEK (1,3 mil EUR)

-    The number of employees will raise respectively with

area growth, in general administration and production

remains the same

-    BG employees salary will raise by 5%

2004 business plan risks can be caused by

·    Classical clothing retailing risks (fashion trends,

     consuming trends, location mistakes etc)

·    Possibility that Russian joint venture launch might

take longer than expected

·    Unfavourable floating in exchange rates





Meelis Milder

CEO

+372 6302 731