BALTIKA                        ANNOUNCEMENT                         03.06.05



COMMENT TO ARTICLE IN ÄRIPÄEV



In today's Aripäev article it was claimed that "Baltic Republics Fund i.e. BRF,

listed on Irish Stock Exchange, will be closed in September next year" and "The

only remaining investment of BRF is Baltika and hence must exit from there within

one year."



AS Baltika does not hold any further information about possible selling of BRF's

ownership interest and therefore finds it impossible to comment such transaction.



BRF's ownership interest in AS Baltika is 34,56% according to Estonian CSD.



Ülle Järv

Financial Director

AS Baltika

+372 6302 731