AS BALTIKA                         ANNOUNCEMENT                     08.08.2005



BALTIKA'S SALES IN JULY



The consolidated net sales of Baltika Group in July totalled EEK 54.4 million,

representing an increase of 24% compared with the same period last year. Retail

sales reached EEK 40.4 million and were up 23% yoy. As in the second half of the

year July, August and September are traditionally strong wholesale months, the

share of retail sales decreased to 74% of net sales in July from June's figure of

94%. Wholesale sales grew 54% yoy and reached EEK 13.3 million.



Due to the establishment of a joint venture on the basis of Baltika's production

unit Baltika Tailor OÜ in November 2004, the consolidated sales results do not

include subcontracting figures starting from December 2004. Thus, in comparable

terms, net sales of Baltika Group increased 30% yoy in July.



July showed very strong sales figures on the back of successful summer clearance

sale and the start of the sale of the new season's products. July sales figures

were also supported by solid wholesale sales.



The strong results of the seven first months of this year give basis for a raise

in the minimum targeted sales of Baltika in 2005 from EEK 620 million to EEK 640

million. Baltika is planning to open 10-12 new stores in the second half of this

year, implying additional retail space of ca 1,700 m2.



Sales figures in July



 EEK million       07/2005   07/2004   Change  

                                           

 Retail sales         40.4      32.8      23%     

 Wholesale            13.3       8.6      54%     

 Subcontracting          0       2.3    -100%   

 Other sales           0.8       0.3     153%    

 Total                54.4      44.0      24%     





The sales of Baltika's largest fast fashion brand Monton accounted for 56% of the

total retail sales in July and amounted to EEK 22.5 million, up 31% on last

year's figure. The retail sales of CHR/Evermen grew 41% compared with the same

period last year, amounting to EEK 10.9 million and the sales of Baltman

decreased 2% yoy to EEK 4.2 million.



While the retail sales grew in all the markets, the best sales growth in July

were reported in Ukraine (+73%), Russia (+40%), and Latvia (+29%).



As of the end of July, Baltika Group operates 76 shops in six countries, with a

total area of 11,340 m2.



Cumulative seven month sales of Baltika totalled EEK 364.9 million (+16% yoy),

including retail sales of EEK 292.7 million (+32%) and wholesale of EEK 64.0

million (-3%). Comparable net sales of the first seven months of this year grew

by 24% yoy.



1 EUR = 15.6466 EEK





Triin Palge

Head of investor relations

+372 630 2886