AS BALTIKA                       ANNOUNCEMENT                       07.07.2005



BALTIKA'S SALES IN JUNE



The consolidated net sales of Baltika Group in June totalled EEK 49.0 million,

representing an increase of 11% compared with the same period last year. Retail

sales comprised 94% of net sales and were up 20% to EEK 46.1 million. Wholesale

sales reached EEK 1.94 million (+2% yoy).



Due to the establishment of a joint venture on the basis of Baltika's production

unit Baltika Tailor OÜ in November 2004, the consolidated sales results do not

include subcontracting figures starting from December 2004. Thus, in comparable

terms, net sales of Baltika Group increased 19% yoy in June.



Sales figures in June (EEK million)



                   06/2005   06/2004   Change  

                                             

Retail sales          46.1      38.5      20%     

Wholesale             1.94      1.90       2%      

Subcontracting           0       3.8    -100%   

Other sales            1.0      0.03    3133%   

Total                 49.0      44.2      11%     





The sales of Baltika's largest fast fashion brand Monton accounted for 53% of the

total retail sales in June and amounted to EEK 24.5 million, up 31% on last

year's figure. The sales of CHR/Evermen grew 45% compared with the same period

last year, amounting to EEK 13.2 million and the sales of Baltman increased 17%

yoy to EEK 4.7 million.



While the retail sales grew in all the markets, the best sales increases in June

were reported in Latvia (+32%), Ukraine (+31%) and Estonia (+27%).



As of the end of June, Baltika Group operates 76 shops in six countries, with a

total area of 11,300 m2.



Cumulative six month sales of Baltika totalled EEK 310.5 million (+15% yoy),

including retail sales of EEK 252.3 million (+34%) and wholesale of EEK 50.7

million (-11% yoy). Comparable net sales of the first six months of this year

grew by 23% yoy.



1 EUR = 15.6466 EEK





Ülle Järv

CFO

+372 630 2741



Triin Palge

Head of investor relations

+372 630 2886