Baltika                       NEWS RELEASE                      01/28/2003



INCREASE OF SHARE CAPITAL



According to the Conditions of Convertible Debentures adopted by 

a resolution of the general meeting of the shareholders of AS Baltika

on 6 April 2001 (see the stock exchange notice of 6 April 2001) and

taking into account the intention of the holders of 15,500 

A-debentures to exchange their debentures for shares,



on 23 January 2003, THE MANAGEMENT BOARD OF AS BALTIKA RESOLVED:



1.  to increase the share capital of the company by 155,000.00 (one 

hundred and fifty-five thousand) kroons, by issuing 15,500 (fifteen 

thousand five hundred) registered shares with a nominal value 

of 10.00 kroons per share;



2.  the share capital will be increased by exchanging 15,500 

A-debentures for shares after the difference between the nominal 

values of the debentures and shares has been paid. The holders of 

A-debentures subscribed for 15,500 shares on 14 January 2003 and 

paid for them by the time of the meeting of the management board;



3.  the new amount of the share capital after the increase of 

the share capital is 54,599,500 (fiftyfour million five hundred

and ninety-nine thousand five hundred) kroons;



4.  when exchanging A-debentures for shares, the amount of 

twenty-four (24.00) kroons is payable per each share, taking into

account the nominal value of the debenture paid upon its issue

and the subscription price for a share as approved by a resolution 

of the management board;



5.  during this issue, the amount of the premium is fifteen (15.00)

kroons per share;



6.  the issued shares entitle their holders to receive dividends as

from the financial year of 2002.



AS Baltika has submitted to the Tallinn Stock Exchange an application 

for listing an additional amount of 15,500 shares.





Ülle Järv

Juhatuse liige

6302 741