AS BALTIKA                ANNOUNCEMENT               07.03.2005



February sales



Baltika's February retail and wholesale totalled 48.9 million EEK (3.1 MEUR), a

22% increase on the same period last year. Retail sales increased by 41% to 35.5

million EEK (2.3 MEUR), with a percentage net turnover of 73%.



The high sales figures were the result of the good early sales performance of the

new spring-summer collections together with a favourable amount of autumn-winter

stock. As a result, the winter sales finished earlier than last year.



Baltika's largest fast fashion brand Monton comprised 51% of February sales,

amounting to 18 million EEK (1.2 MEUR). These figures represent an increase of

10% compared to last year. Baltman had the largest retail increase in February

reaching 71% and 3.8 million EEK (0.5 MEUR). CHR/Evermen had a 60% increase in

retail trade in February reaching 8.8 million EEK (0.6 MEUR).



During February, sales increases were noted in all Baltika's markets, the largest

of which were in Latvia (46%), Ukraine (33%), Estonia and Poland (both 16%).



In February, a factory outlet store in Kiev, Ukraine, was closed.



As of the end of February, Baltika Group has 76 shops in its retail chain.



In February, wholesale turnover totalled 13.4 million EEK (0.9 MEUR), 9% less

that last year. The decrease is due to a switch that was made in Russia from a

wholesale system to the Baltika retail system.



Figures for the first two months of the year show a total consolidated net

turnover totalling 95.1 million EEK (6,1 MEUR), a 19% increase on the same period

last year.





Ülle Järv

Financial Director

+272 6302 731