Baltika                       NEWS RELEASE                      09/19/2002



DECISION OF THE SHAREHOLDERS MEETING



The extraordinary general meeting of AS Baltika shareholders of

17 September 2002, in which 3,000,047 votes representing 62.5010% 

of the total number of votes attached to shares were registered,

DECIDED:



to increase the share capital of AS Baltika by six million

four hundred and forty thousand five hundred (6,444,500)

kroons by issuing six hundred and forty-four thousand four

hundred and fifty(644,450) new shares with the nominal value

of ten (10) kroons and the issue price of thirty-six (36.00)

kroons each. The share premium is twenty-six (26) kroons per

share.



The new amount of share capital is EEK 54,444,500. The newly

issued shares entitle holders to dividends as from the

financial year when the share capital was increased.



The term for subscription for the new shares is 17 September

2002. The shares shall be paid for by monetary contributions

in a total of EEK 23,200,200 to the settlement account of AS

Baltika by 1 October 2002 at the latest.



It was decided to exclude the pre-emptive right of

shareholders to subscribe for the new shares and to invite to

the subscription only BMIG OÜ, register code 10890124, whose

shareholders are the management board members and the chairman

of the supervisory of Baltika, the subscription transaction to

be concluded with whom is approved by the shareholders by

virtue of this decision. BMIG OÜ has entered into an agreement

with AS Baltika by which it undertakes to subscribe for the

entire issue and pay the price specified in the decision for

the shares.



Voting: 2,980,527 votes, i.e. 99.349% of the registered  votes

were  given  in favour and 700 votes, i.e. 0.023%  were  given

against  the  decision;  18820 votes,  i.e.  0.627%  of  those

registered remained undecided.





Ülle Järv

Member of the Management Board

+372 6302 741