Baltika                       NEWS RELEASE                      09/06/2002



BALTIKA LAUNCHED A NEW TRADEMARK



AS Baltika launched a new international clothes trademark, MONTON, targeting

men and women in the 25-35 age group with medium or higher income, who

appreciate style, fashion and quality. Development of the trademark and retail

concept was started already in 2001 in cooperation with the US consultation

company RPA Inc and continued in 2002 with the Finnish TBWA/PHS. Since

5 September 2002 the Monton trademark is available in a total of 29 shops in

Estonia, Lithuania, Latvia, Poland and the Ukraine. The launching campaign of

the new retail concept started in August and will last through October. The

venture is a one-time project for the group and its cost during 2001-2002 is

about EEK 22.4m (EUR 1.43m), including concept and trademark development costs

of EEK 7.4m (EUR 0.47m), shop redesign costs of EEK 8.0m (EUR 0.5m) and

launching campaign costs of EEK 7m (EUR 0.45m).



In connection with the launch of the new clothes trademark Monton, Baltika

Group has also reorganised the distribution channels and concepts of the other

trademarks it owns. Baltman Rõivakauplused that formerly offered clothes for

various customer groups is now divided into two chains of shops (CHR/Evermen,

and, exclusively for men, Baltman), each of which serves one specific customer

group. This means that different customer segments can now enjoy the benefits

of specifically designed and conveniently located purchase environments. The

group also operates the Baltika Vabrikupoed that sell the previous seasons’

leftovers of the different clothing brands of Baltika.

The shops are divided according to their share in the group’s total retail

sale area as follows: Monton 80%, CHR/Evermen 9%, Baltman 6% and Baltika

Vabrikupoed 5%.





Meelis Milder

Management board chairman

+372 6302 736