AS BALTIKA                       ANNOUNCEMENT                       07.10.2005



BALTIKA'S SALES IN SEPTEMBER



The consolidated net sales of Baltika Group in September amounted to EEK 61.2

million, posting an increase of 0.5% compared with last year. In comparable

terms, if we eliminate subcontracting sales from last year's figures, the net

sales of Baltika Group increased 7% yoy in September. Retail sales grew 6% in

September totalling EEK 44.6 million and wholesale sales grew 10% to EEK 15.7

million.



In the third quarter, Baltika's sales increased 13% yoy while retail sales posted

a growth of 20% and wholesale 17% compared with 3Q of last year. Comparable net

sales of 3Q 2005 increased 19% yoy.



On the back of the strong sales results of this year Baltika raised the minimum

sales target for 2005 from EEK 620 million to EEK 640 million.



 Sales figures in September



 EEK million       09/2005   09/2004    Change  

                                           

 Retail sales         44.6      41.9        6%      

 Wholesale            15.7      14.2       10%     

 Subcontracting          0       4.7     -100%   

 Other sales           0.9       0.1      800%    

 Total                61.2      60.9      0.5%    





The sales of Baltika's fast fashion brand Monton accounted for 55% of the total

retail sales in September and amounted to EEK 24.2 million, up 5% on last year's

figure. The retail sales of CHR/Evermen grew 30% compared with the same period

last year, amounting to EEK 13.0 million and the sales of Baltman maintained the

last year's level of EEK 4.1 million.



All the markets posted growth in retail sales except for Poland. The best

performing retail markets in September were Estonia (+16% yoy), Latvia (+14%) and

Ukraine (+14%).



In September, Baltika opened one new store in Mandarynas shopping centre in

Vilnius, Lithuania. As of the end of the month, Baltika Group operates 79 shops

with total sales area of 11,702 m2. As the opening of the Tartu Kaubamaja

shopping centre (in Tartu, Estonia) was postponed by two weeks, Baltika's three

new stores in the respective centre will be also opened in October instead of

September. All in all, Baltika is proceeding in line with the earlier announced

plans to open 10-12 new stores in the second half of 2005.



Cumulative nine month sales of Baltika totalled EEK 490.7 million (+14% yoy),

including retail sales of EEK 380.9 million (+29%) and wholesale of EEK 99.5

million (+1%). Comparable net sales of the first nine months of this year

expanded 22% compared with previous year.



Baltika will publish the interim results for the 3Q 2005 on October 21.



1 EUR = 15.6466 EEK





Triin Palge

Head of investor relations

+372 630 2886