AS BALTIKA                     ANNOUNCEMENT                     24.08.2005



BALTIKA IS OBTAINING BUILDING LEASE IN LASNAMÄE INDUSTRIAL PARK



At today's (24 August) meeting, the Tallinn city government agreed with

constitution of building lease on two plots of land belonging to AS Lasnamäe

Tööstuspark (Lasnamäe Industrial Park). Based on this decision, OÜ Baltika TP

(100% owned by AS Baltika), is able to lease 25,061 m2 of land in the Lasnamäe

industrial park with planning permission for industrial buildings. The cost of

the above mentioned building lease for the first three years is EEK 3,759,150

(EUR 240 thousand). After three years, the owner of the building lease will have

an option to purchase the land for EEK 11,277,450 (EUR 721 thousand).



According to the current plans, Baltika intends to move its central warehouse to

the Lasnamäe industrial park in 2006. The production premises that are located in

the central district of Tallinn and belong to Baltika's joint venture OÜ Baltika

Tailor should be relocated in 2007.





Triin Palge

Head of investor relations

+372 630 2886