Baltika                       FINANCIAL RESULTS                 02/28/2002



COMMENTARY TO FINANCIAL RESULTS Q4 2001



AS Baltika 2001 consolidated unaudited net sales totaled

414.4 mln kroons (26.5 mln euros) and net profit 15.7 mln

kroons (1.0 mln euros). Net sales grew on annual basis by

21.6% (73.9 mln. kroons; 4.72 mln euros) and net profit

by 10,2 % (1.5 mln kroons; 0.1 mln euros).



Q4 net sales amounted to 111.6 mln kroons (7.14 mln

euros) providing 39,8% annual growth (31,8 mln kroons;

2,03 mln euros). Q4 net profit totaled 6.52 mln kroons

(0.42 mln euros), providing 83.3% (2.96 mln kroons; 0,19

mln euros) increase on y-o-y basis.



Trasformation of Baltika Group from manufacturing

enterprise into retail sales organisation was one of the

main strategic objectives in 2001. Opening of retail

sales premises continued.

By year-end Baltika Group has the control of 55 retail

stores (y-o-y growth 1.6 times) in 7 states. Total area

of sales premises grossed 6,823 m2 (3,585 m2 in 2000) by

year-end. By year-end 2001 a new retail concept was

completed to be implemented in 2002.In co-operation with

consultation agency RPA (USA) a new store brands system

in addition to practical solutions was completed.



AS Baltika financial ratios as of 31.12.2001:



                      

                                           31.12.2000   31.12.2001

- gross margin (gross profit/net sales)    4,84%             5,65%

- profit margin (net profit before 

  minority interest/net sales)             4,02%             4,84%

- ROE (net profit/owners equity)           11,2%             11,2%

- ROA (net profit/average cost of assets)   5,9%             6,32%

- Quick ratio(current assets-inventories/

  current liabilities)                     0,85              0,99





AS Baltika will publish its audited annual report for

year 2001 on March 12, 2002.





Ülle Järv

Management  Board member

+372 6302 741