AS BALTIKA                       ANNOUNCEMENT                       04.11.2005



BALTIKA'S SALES IN OCTOBER



The consolidated net sales of Baltika Group in October totalled EEK 66.5 million,

posting a strong increase of 21% compared with last year. In comparable terms, if

we eliminate subcontracting sales from last year's figures, the net sales of

Baltika Group increased 27% yoy in October. Retail sales grew 27% in October

reaching EEK 55.5 million and wholesale sales grew 31% to EEK 10.1 million. As

the traditionally strong wholesale period is over, the share of retail sales in

total monthly sales increased to 83%.



Sales figures in October



 EEK million       10/2005   10/2004    Change  

                                           

 Retail sales         55.5      43.8       27%     

 Wholesale            10.1       7.7       31%     

 Subcontracting          0       3.2     -100%   

 Other sales           0.9       0.1      840%    

 Total                66.5      54.8       21%     



All the Baltika's brands showed solid sales growth in October. The sales of fast

fashion brand Monton grew 25% yoy to EEK 29.5 million and accounted for 53% of

the total retail sales in October. The retail sales of CHR/Evermen grew 55%

compared with the same period last year and totalled EEK 16.5 million. The sales

of Baltman expanded by 20% yoy reaching EEK 6.2 million in October.



Additionally, all the markets posted double digit growth yoy in retail sales

except for Poland that had flat sales. The best performing retail markets in

October were Ukraine (+47% yoy), Latvia (+34%) and Estonia (+33%).



In October, Baltika opened two new stores in the Tartu Kaubamaja shopping centre

(in Tartu, Estonia). Simultaneously, one store in Tartu was closed. As of the end

of the month, Baltika Group operates 80 shops with total sales area of 11,785 m2.

All in all, Baltika is planning to open 10-11 new stores in the fourth quarter of

2005.



Cumulative ten month sales of Baltika totalled EEK 557.1 million (+15% yoy),

including retail sales of EEK 436.1 million (+28%) and wholesale of EEK 109.6

million (+3%). Comparable ten-month sales of this year expanded 22% yoy.



1 EUR = 15.6466 EEK





Triin Palge

Head of investor relations

+372 630 2886