Baltika                       FINANCIAL RESULTS                 06/21/2004



2004 5M RESULTS



Five months’ financial results of Baltika Grupp



The unaudited consolidated net sales of AS Baltika in May

2004  were EEK 45.02m (EUR 2.88m) and the net profit  was

EEK  1.35m  (EUR 0.23m). Compared to May  2003,  the  net

sales increased by 22.7% (net sales EEK 36.7m; EUR 2.34m,

respectively).  The net loss in May 2003  was  EEK  1.68m

(EUR 0.10m).



The  unaudited consolidated net sales of Baltika  in  the

first  five months of 2004 were EEK 225.14m (EUR  14,38m)

and the net profit was EEK 4.86m (EUR 0.31m). Compared to

the same period of 2003, the net sales increased by 18.0%

(net  sales  EEK  191.1m; EUR 12.21m, respectively).  The

period of the first five months of 2004 ended with a loss

of EEK 23.45m (EUR 1.49m).



The  retail  sales of Baltika Grupp for the  five  months

totalled EEK 150.82m (EUR 9.63m), forming 66.0% of  total

sales  (including 78% in May). Retail sales increased  by

25%  compared  to  the same period of the  previous  year

(including 37% in May).

The  Monton shop on Barona Street was closed in May, when

a  new  Monton  shop  was opened in the  Domina  Shopping

Centre in Riga. A new CHR/Evermen shop was also opened in

the Domina Shopping Centre.

In  connection with a joint venture in Russia, eight  new

retail  outlets - four shops in Moscow and St. Petersburg

each  - were added to the Baltika Grupp retail system  in

May.



The  five months’ sales of Baltika’s largest retail brand

Monton  was EEK 93m (EUR 5.94m) and it accounted for  62%

of  the  total retail sales. The sales volumes of  Monton

increased by 1.1%.

The  sales volumes of CHR/Evermen more than doubled since

last year (213%), amounting to EEK 37m (EUR 2.36m).

Baltman’s sales growth was 60% and the sales were EEK 18m

(EUR 1.15m). The sales were most influenced in May by the

six new Baltman shops in Russia.



Sales  growths were the largest compared to the  previous

year  in the Ukraine (growth 54%) and Latvia (growth 44%)

during  the  five months. The net sales amounted  to  EEK

28.42m   (EUR   1.81m)  and  EEK  18.92m   (EUR   1.20m),

respectively.  On  the domestic Estonian  market,  retail

sales  increased  by 22.3% compared  to  the  first  five

months of the previous year, amounting to EEK 46.17m (EUR

2.95m).



Sales  on  like-for-like  areas  increased  the  most  in

Estonia (13%), Latvia, and the Ukraine (10%).



Rehabilitation of the Polish market continues.





Ülle Järv

Finantsdirektor

+372 6302 731