AS BALTIKA                        ANNOUNCEMENT                     03.06.2005



MAY SALES RESULTS



Baltika's consolidated net sales in May totaled 52 M EEK, which is 16% more

compared to the same period last year. Retail sales increased by 27% to 44,7 M

EEK, forming 86% from the net sales.



Baltika's largest fast fashion brand Monton accounted for 55% of the total retail

sales in May, amounting to 24,3 M EEK. The sales of Monton increased by 29%

compared to the same period last year.

The sales volumes of CHR/Evermen increased by 38% compared to the same period

last year, amounting to 11,9 M EEK.

The sales volumes of Baltman increased by 35% compared to the last year,

amounting to 5,5 M EEK.



The retail sales in May increased the most in Latvia (50%), Ukraine (39%) and

Estonia (35%). In May Baltika celebrated one year of operating in Russian retail

market. During that time the Baltika's brands turnover through own retail

system in Russia was  52 M EEK. Baltika has cuurently 7 shops in Moscow and Saint

Petersburg.



The successful sales of the spring-summer collection have increased the sales

efficiency of the whole retail system and sales per square meter in its own

retail chain.



In May, the first Baltman shop was opened in Ukraine, Donetsk. As of May 2005,

Baltika Group operates 76 shops in 6 countries, with total area of 11 300 m2.



In May, the wholesales totaled 6,0 M EEK, which is similar to the last year.



The net turnover of five months totaled 261,1 M EEK, which is 16% more compared

to the same period last year, including retail turnover of 205,7 M EEK (a 37%

increase) and wholesale turnover of 49 M EEK (a 11% decrease).



Due to Baltika's 50% participation in Baltika Tailor OÜ, a joint venture

established in 2004, the consolidated sales results do not report the

subcontracting figures for the five months of 2005, amounting to 19,4 M EEK in

the same period in 2004. Therefore, retail and wholesale totaled 254,8 M EEK,

showing a 24% increase compared to last year.



1 EUR = 15,6466 EEK





Ülle Järv

Financial director

AS Baltika

+ 372 6 302 741