Baltika                       NEWS RELEASE                      09/09/2002



INCREASING OF SHARE CAPITAL



To provide additional funding to the strategic growth plans of the

groups and increase the personal holdings of top managers in the

company, the 6 September supervisory board meeting of AS Baltika

decided to call a special meeting of shareholders of the company

on 17 September 2002, proposing to increase the company’s share

capital by EEK 6,444,500 by the issue of 644,450 new shares with a

nominal value of EEK 10 and a price of EEK 36 per share, totalling

EEK 23,200,200.

According to the resolution of the supervisory board, shareholders

are proposed to waive their pre-emptive rights and invite OÜ BMIG

to subscribe for the entire issue.

OÜ BMIG is an investment company currently being founded by the

management board members of Baltika Meelis Milder, Maire Milder,

Ülle Järv, Boriss Loifenfeld, James A. Hayhow and the chairman of

the supervisory board Miles W. Burger for the purpose of acquiring

the additional share issue. According to the foundation documents

of OÜ BMIG, the shareholders will invest EEK 7.2m of money and

458,860 shares they hold in Baltika in the company. Loan capital

will be involved in the payment for the issue.

As a result of the additional share issue, the new share capital

of AS Baltika will be EEK 54,444,500 and the Baltic Republics Fund

(BRF) with 35.68% and OÜ BMIG with 20.26% will be the major

shareholders of the company. AS Hansapank has been selected to

manage the issue.



Further information: Meelis Milder +372 6302 736

                     Ülle Järv +372 6302 741





Meelis Milder

Chairman of the management boa

+372 6302 736