Saku Õlletehas                FINANCIAL RESULTS                 08/31/2004



FINANCIAL RESULTS OF THE FIRST SIX MONTHS



BALANCE SHEET                                                                

(In thousands)                        EEK                       €        

                            30.6.20 30.6.20 31.12.2  30.6.20 30.6.20 31.12.2

                               04      03     003       04      03     003

                                                                          

ASSETS                                                                       

 Cash and bank               22,701  19,773   22,023   1,451   1,264    1,408

 Trade receivables (Note 2)  68,503  55,956   35,308   4,378   3,576    2,256

 Other receivables and        9,456   7,137    3,882     604     456      248

prepayments (Note 3)

 Inventories (Note 4)       140,856 138,078  113,652   9,002   8,825    7,264

TOTAL CURRENT ASSETS        241,516 220,944  174,865  15,435  14,121   11,176

                                                                             

Non-current assets                                                           

 Long-term financial assets  13,460  16,000   14,060     860   1,023      899

(Note 9)

 Long-term receivables           27      63       45       2       4        3

(Note 5)

 Property, plant and        250,763 243,682  245,843  16,027  15,574   15,712

equipment (Note 6)

 Intangible assets (Note 7)     455     979      719      29      62       46

TOTAL NON-CURRENT ASSETS    264,705 260,724  260,667  16,918  16,663   16,660

TOTAL ASSETS                506,221 481,668  435,532  32,353  30,784   27,836

                                                                             

LIABILITIES AND EQUITY                                                       

Current liabilities                                                          

 Debt obligations (Note 8)      531   1,232      907      34      79       58

 Trade payables              27,211  31,148   12,226   1,739   1,991      782

 Payables to group           56,039  47,797    4,600   3,582   3,055      294

companies (Note 14)

 Deposit liability (Notes    32,769  36,908   29,209   2,094   2,359    1,867

4, 6)

 Tax liabilities (Note 10)   35,036  23,350   15,809   2,239   1,492    1,010

 Payables to employees        2,928   3,526    4,288     187     226      274

 Dividends payable                    6,894                      441         

 Other accrued expenses       9,370            1,599     599              102

 Provisions                     115   2,052      373       7     131       24

TOTAL CURRENT LIABILITIES   163,999 152,907   69,011  10,481   9,774    4,411

                                                                             

Non-current liabilities                                                      

 Non-convertible debt (Note      58     981      419       4      62       27

8)

TOTAL NON-CURRENT                58     981      419       4      62       27

LIABILITIES

                                                                             

Equity (Note 12)                                                             

 Share capital               80,000  80,000   80,000   5,113   5,113    5,113

 Capital reserve              8,000   8,000    8,000     511     511      511

 Other reserves              44,070  44,070   44,070   2,817   2,817    2,817

 Accumulated profits        194,032 179,262  179,262  12,400  11,456   11,457

 Net profit/loss for the     16,062  16,448   54,770   1,027   1,051    3,500

period

TOTAL EQUITY                342,164 327,780  366,102  21,868  20,948   23,398

TOTAL LIABILITIES AND       506,221 481,668  435,532  32,353  30,784   27,836

EQUITY

  



INCOME STATEMENT                                                       

(In thousands)                      EEK                       €        

                          January-January-         January-January-    

                           June     June             June    June      

                           2004     2003     2003    2004    2003    2003

Revenue                                                                   

 Sales revenue (Note 13)  255,073  213,302 463,362  16,302  13,632  29,614

 Other revenue (Note 15)      144      321     736       9      20      47

Total revenue             255,217  213,623 464,098  16,311  13,652  29,661

                                                                          

Expenses (Note 16)                                                        

 Changes in work in                                                       

progress and finished

  goods inventories       -10,870   -6,271     453    -694    -401      29

 Materials, consumables   118,814   85,637 185,104   7,593   5,473  11,830

and supplies used

 Other operating expenses  64,249   59,740 112,158   4,106   3,818   7,168

 Personnel expenses        29,472   25,302  52,091   1,884   1,617   3,329

 Depreciation and          21,931   23,050  46,216   1,401   1,473   2,954

amortization expense

 Other expenses             1,459    1,206   4,688      93      77     300

Total expenses            225,055  188,664 400,710  14,383  12,057  25,610

                                                                          

PROFIT FROM OPERATIONS     30,162   24,959  63,388   1,928   1,595   4,051

                                                                          

 Financial income and         -46     -829    -936      -3     -53     -60

expenses (Note 17)

                                                                          

PROFIT FOR THE PERIOD      30,116   24,130  62,452   1,925   1,542   3,991

BEFORE TAX

                                                                          

 Income tax expense        14,054    7,682   7,682     898     491     491

                                                                          

NET PROFIT FOR THE PERIOD  16,062   16,448  54,770   1,027   1,051   3,500

                                                                          

Basic earnings per share     2.01     2.06    6.85    0.13    0.13    0.44

(Note 18)

Diluted earnings per         2.01     2.06    6.85    0.13    0.13    0.44

share (Note 18)

                                                                          

         

Review of operations and performance



Our  beverage  sales  for the first six  months  of  2004

totalled 32.5m litres, 6.3m litres or 24% up on the  same

period in 2003. Revenues amounted to EEK 255.2m (€16.3m),

an  EEK  41.6m (€2.7m) or 19.5% improvement on the  first

six  months of 2003. Results improved largely on  account

of  an  increase in the sale of beer and other  alcoholic

beverages, and a rise in the sale of soft drinks.



According to the Estonian Breweries Association,  in  the

first half of 2004 the Estonian beer market grew by  18%.

Stronger and cheaper beer segment has increased generally

on  the  market  and  undermined the mainstream  segment.

Domestic beer sales of Saku Brewery increased during  the

period 14% compared to the last year same period, because

of  a  new products, tourists and cheap category products

including PET. The company has increased it`s share in  a

premium  beer  market what are related to the  launch  of

Carlsberg can beers and the first domestic wheat beer.

At  the  end of six months, our share of the beer  market

was 42.0%, being on the market leader position.



The   cider   and   gin  long  drink  markets   sustained

substantial  growth, with 50% and  26%  up  on  the  same

period  in  2003  respectively. At  the  same  time  Saku

Brewery`s  cider  sales has doubled and  gin  long  drink

sales almost tripled.



Since  May  1 is the main brand Saku Original distributed

by  Sinebrychoff in Finnish market, which  has  increased

export to Finland.



Expenses incurred in the first half of 2004 totalled  EEK

225.1m  (€14.4m), EEK 36.4m (€2.3m) or 19.3%  up  on  the

same  period in 2003. The largest growth occurred in  the

cost  of  materials,  consumables and  supplies,  largely

because  of an increase in sales and production  volumes.

Moreover,  the  volume  of  beverages  sold  in   one-way

packaging  (cans  and PET) has almost  doubled  over  the

year, which has increased related materials costs.



Our  operating  profit for the first six months  of  2004

amounted to EEK 30.2m (€1.9m), EEK 5.2m (€333,000) up  on

a  year  ago.  Net  profit  for the  period  amounted  to

EEK 16.1m (€1.0m) against the EEK 16.4m (€1.1m) earned in

the first half of 2003.





FINANCIAL RATIOS                      January-  January-

                                        June      June

                                        2004      2003

                                                

Operating margin (operating profit  /     11.8%     11.7%

total revenue)

Net   margin  (net  profit  /   total      6.3%      7.7%

revenue)

Return on assets (net profit /             3.4%      3.6%

average total assets)

Return on equity (net profit /             4.5%      4.8%

average equity)

Non-current asset turnover ratio            1.0       0.8

(total revenue / average non-current

assets)

Total assets turnover ratio (total          0.5       0.5

revenue / average total assets)





Kristina Seimann

Communication Manager

+372 6508 303