Baltika                       NEWS RELEASE                      05/13/2004



INCREASE IN SHARE CAPITAL



According to the Conditions of Convertible Bonds 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  88 000 A-convertible

bonds to exchange them against the Baltika shares,



On 30. April 2004 THE MANAGEMENT BOARD OF AS BALTIKA resolved:



1.  to increase the share capital of the company by 880

    000  (eight hundred eighty  thousand)  kroons  (56

    242 euros), by issuing 88 000 (eighty eight

    thousand) registered shares with a nominal value of

    10.00 kroons per share;



2.  the share capital will be increased by

    exchanging 88 000 A-convertible bonds for shares

    after the difference between the nominal values of

    the bonds and shares has been paid. The holders of A-

    convertible bonds  subscribed for 88 000 shares on

    27 April 2004 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 55 874 500 (fifty-

    five million eight hundred and seventy-four thousand

    five hundred) kroons; (3 571 031 euros);



4.  when exchanging A-convertible bonds 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

    2004.



AS Baltika has submitted to the Tallinn Stock Exchange an

application for listing an additional amount of  88 000

shares.







Management Board of AS Baltika





Ülle Järv

Financial Director

+372 6302 731