AS BALTIKA                        Announcement                         04.02.2005



January sales results



Baltika's January consolidated turnover totalled 46.5 million EEK (2,97 m EUR),

26%  increase on the same period last year. Retail trade increased by 58% to 39.1

million EEK (2,5 m EUR), with a percentage net turnover of 84%.



The high sales were the fruits of a well-directed sale period as well as the

success of the new products early in the season, which both significantly

influenced margins and sales effectiveness in every brand throughout all markets.



Baltika's largest fashion brand Monton comprised 50% of January sales, amounting

to 19.5 million EEK (1,25 m EUR). These figures represent an increase of 30%.

CHR/Evermen had the largest retail increase in January reaching 88% and 10.5

million EEK (0,67 m EUR).

There was a 46% increase in Baltman brand sales in January, totalling 4.8 million

EEK (0,31 m EUR).



During January, sales increases were noted in all Baltic markets, the largest of

which were in Latvia (79%), Lithuania (52%), and Estonia (34%). The largest

markets were in Estonia and Lithuania.



In January, the Monton store in Land Center, Warsaw was closed due to completion

of the leasing agreement.



As of the end of January, Baltika Group has 78 shops in its retail chain.



In January, wholesale turnover totalled 7.4 million EEK (0,47 m EUR), 39% less 

than last year. The decrease is because a switch was made in Russia from a wholesale 

system to the Baltika retail system.



Since December 2004, Baltika AS sales are no longer consolidated with the sales

of Baltika Tailor OÜ, due to the establishment of a joint venture in which

Baltika AS has a 50% stake.





Ülle Järv

Financial Director

AS Baltika

+372 6302 741