Tallinn Stock Exchange                 ANNOUNCEMENT                  22/23.11.2005



COMMITTEE'S DECISION ON BALTIKA



On November 17, 2005, the Listing and  Surveillance  Committee  (hereinafter:  the

Committee) of the Tallinn Stock Exchange  reviewed  the  circumstances  identified

and materials collected in the course of supervisory proceedings carried out  with

respect to AS Baltika and decided to give a warning to AS  Baltika  for  violation

of TSE Rules.



Circumstances:



In connection with disclosing the AS Baltika interim report for the third  quarter

of  2005,  the  clause  4.5.2.  of  the   section   "Requirements   for   Issuers"

(hereinafter: RI) of TSE Rules was applicable during September 23  -  October  22,

2005 (the Restricted Period). The results  of  the  third  quarter  of  2005  were

published on October 21, 2005.



On September 28, 2005, Baltic Republics Fund (hereinafter: BRF)  sold  2  012  400

shares of  AS  Baltika  as  a  private  offering  to  Estonian  and  international

institutional  investors  (hereinafter:  the  Transaction).  The   reason   behind

conducting the Transaction was approaching the BRF due date (closing up  the  BRF)

and related need for disposal of BRF's  investments.  During  the  Transaction  OÜ

BMIG acquired 250,000 shares of AS Baltika. The owners of OÜ BMIG are  AS  Baltika

management  board  members  Meelis  Milder,  Maire  Milder,   Ülle   Järv,   Boris

Loifenfeld; AS Baltika supervisory board member Miles Burger and OÜ  LVM  Projekt,

partially owned by Meelis Milder.



On the day of Transaction, the Restriction Period was applicable  to  the  members

of AS Baltika management and supervisory boards and persons connected  with  them.

OÜ BMIG and its owners Meelis Milder, Maire Milder, Ülle  Järv,  Boris  Loifenfeld

and Miles Burger did  not  apply  for  exception  to  the  restricted  period,  as

provided in clause 4.5.3 of RI.



Considering the materials submitted, the Committee concluded:



1. The conduct of OÜ BMIG as a person connected with AS Baltika  management  board

members Meelis Milder, Maire Milder, Ülle Järv, Boris Loifenfeld  and  AS  Baltika

supervisory board member Miles Burger has been contrary  to  the  obligations  set

out in clause 4.5.2 of RI. The persons involved  regret  sincerely  their  mistake

and applied for an exception to the restricted period after the Transaction.



2. Violation of TSE Rules has been evidenced, as assessed  by  the  Committee,  by

the circumstances identified in the course of the supervisory proceedings  carried

out by the TSE. There are no objective circumstances  that  would  have  prevented

Meelis Milder, Maire Milder, Ülle Järv, Boris Loifenfeld  and  Miles  Burger  from

duly performing their obligations. There  are  sufficient  grounds  to  apply  the

legal remedies within the competence of the Stock Exchange.



3. The internal control measures employed by AS Baltika are satisfactory.



4. The use of confidential information in the activities of  the  members  of  the

management board (Meelis Milder, Maire Milder, Ülle Järv,  Boris  Loifenfeld)  and

the member of the supervisory board (Miles Burger) has not been established



Background:



According to clause 4.5.2.  of  RI,  members  of  the  management  board  and  the

supervisory board,  the  auditors  and  procurators  of  and  Issuer  and  persons

connected with them are  not  allowed  to  effect  transactions  in  the  Issuer's

securities for their own account or through an intermediary during a  period  (the

Restricted Period) starting one week before to the end  of  the  reporting  period

and ending one day after the disclosure of the financial  results  of  the  Issuer

for the reporting period. If the Issuer is obliged to submit consolidated  reports

to the Exchange according to the provisions of these Requirements,  the  mentioned

period ends on the day following  the  date  of  disclosure  of  the  consolidated

reports. For the purposes of these Requirements, a reporting period is  understood

as the period during which an  Issuer  regularly  forwards  to  the  Exchange  the

balance sheet and/or the  income  statement  of  the  Issuer  or  its  significant

subsidiaries.



According to clause 4.5.3. of RI, the Listing Committee of the Exchange may  grant

exceptions to the restriction set out in clause 4.5.2  of  these  Requirements  on

the basis of a person's written application, if  the  Listing  Committee  believes

that the transaction is not effected on the basis of confidential information.



According to clause 4.3.2. of  RI,  an  Issuer  is  required  to  inform  all  the

persons, who, pursuant to RI, are in possession of  confidential  information,  of

the provisions of RI and to require such persons to act in accordance with RI.





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