AS BALTIKA                       ANNOUNCEMENT                       22.12.2005



COMMENTARY ON BBN NEWS



According to the business news channel Baltic Business News (BBN), the Supreme

Court of Latvia decided yesterday to reject Baltika's claim for holding the sole

rights of Evermen trade mark in Latvia. The sole rights of Evermen trade mark

remained in the possession of the former business partner of Baltika, Nikolai

Boitsov, who registered the trade mark in Latvia in 1998.



Menswear brand Evermen is a trade mark created in Baltika Group in 1995. The

Group has used the brand name in several international markets for years. In

Latvia, Baltika started to use the trade mark in 1996.



Baltika Group operates four CHR/Evermen stores in Latvia. Three of them sell

both, the womenswear collection CHR and menswear collection Evermen. Altogether

Baltika has 32 CHR/Everman shops in six countries: in Estonia, Latvia, Lithuania,

Ukraine, Poland and Russia.



According to the existing agreement, Baltika will continue to sell products under

the Evermen brand name in its Latvian stores. Baltika does not intend to appeal

the decision of the Supreme Court. The decision does not impact the financial

results of the Group.





Triin Palge

Head of investor relations

+372 630 2886