AS BALTIKA                        ANNOUNCEMENT                        28.09.2005



SALE OF A SIGNIFICANT STAKE IN BALTIKA



AS Baltika hereby informs that Baltic Republics Fund sold today its 34.56%

ownership in AS Baltika (2,012,400 shares in total). The price of the transaction

was EUR 6.86 (EEK 107.34) per share.



OÜ BMIG, owned by the executives of Baltika acquired 250,000 shares that

represent 4.29% of the total outstanding shares of the company. As a result, the

ownership of OÜ BMIG in Baltika increased to 22.78%. The remaining 1,762,400

shares were sold to local and international institutional investors.



The placement was arranged by AS Suprema Securities.





Triin Palge

Head of investor relations

+372 630 2886