Baltika                       NEWS RELEASE                      06/21/2004



CHANGES IN BALTIKA'S MANAGEMENT



Upon  settlement, the employment contract between Baltika

and  James  Hayhow, the Production Division  director  of

Baltika Group and the Management Board Member

will cease on 1 July 2004.



James  has  worked  in  Baltika’s  Parent  Company  as  a

Production  Director  and  Group’s  Production   Division

Director since 1 July 1998.



Meelis  Milder, the Chairman of the Board will take  over

the management of Baltika Group’s Production Division.





Ülle Järv

Financial Director

+372 6302 731