Tallinna Börs                 NEWS RELEASE                      05/11/2004



COMMITTEE'S DECISION ON BALTIKA



On 5 May 2004, the Listing and Surveillance Committee of the Tallinn 

Stock Exchange reviewed the circumstances identified and materials 

collected in the course of supervisory proceedings carried out with respect 

to a potential violation by AS Baltika of the TSE Rules in relation to the 

failure to adjust the formerly published profit forecasts.



The Listing and Surveillance Committee of the Stock Exchange, having 

examined the circumstances identified and materials collected in the 

course of the supervisory proceedings carried out with respect to the 

activities of AS Baltika, established:



1. The financial results published by AS Baltika on 27 February 2004 

differed materially from the financial forecasts published on 26 September 

2003, but AS Baltika failed to adjust the formerly published forecast, 

which was materially different from the actual financial results, 

immediately after becoming aware of it, and failed to describe the reasons 

why the expected results were not attained.



Therefore, the conduct of AS Baltika reveals circumstances proving that 

the conduct of AS Baltika has been contrary to the obligations set out in 

clause 5.6.2 of the part "Requirements for Issuers" (hereinafter: RI) of 

the TSE rules.



AS Baltika has violated the obligations set out in the RI, which oblige an 

issuer to ensure the disclosure of correct, precise and full information 

which may materially influence the price of a security. The publication of 

the aforementioned information is to be regarded as material, because 

investors can make investment decisions and assess the value of 

securities owned or acquired by them on the basis of the published 

information. It may even be said in this case that because of the lack of 

adjustment in due course, damage was caused to two shareholders of AS 

Baltika in three transactions. Therefore, the requirements of the Rules are 

not merely a formality but have been established to ensure the 

transparency of the market and protect the interests of the market 

participants. The Stock Exchange therefore considers it important to 

comply with the requirements of the Rules. The Stock Exchange also 

considers it important to mention that the publication of any forecasts by 

another person (Hansapank Markets in this case) cannot be regarded as 

the issuer’s due performance of its obligations.



2. There are no objective circumstances which would have prevented AS 

Baltika from duly performing its obligations. 



3. There are sufficient grounds to apply the legal remedies within the 

competence of the Stock Exchange to AS Baltika.



Based on the "Agreement on Listing Securities on Tallinn Stock Exchange" 

concluded between the Stock Exchange and AS Baltika and guided by 

clause 10.2 of the RI and clauses 4.1.2.1 and 4.8.1 of "Supervision", the 

Listing and Surveillance Committee of the Stock Exchange



decided:



to impose a fine of five thousand (5000) kroons on AS Baltika for violation 

of clause 5.6.2 of the RI.





Tallinn Stock Exchange

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