Saku Õlletehas                FINANCIAL RESULTS                 11/25/2002



RESULTS OF 2002 FIRST NINE MONTHS



Review of operations and results



Saku Brewery Ltd ended the first nine months of 2002 with

net  sales  of  EEK 611.8 million (EUR 39.1 million),  an

increase  of 4.3 percent or EEK 586.4 million  (EUR  37.5

million) on the corresponding period of 2001.

Sales  increased  in  all product  groups  but  the  best

results  were  attained with self-produced  beers,  whose

sales grew 3 percent compared to the first nine months of

2001.



We  sold  39.2  million  litres of  beer,  retaining  the

position of the largest domestic beer producer. Sales  of

self-produced beers increased 2 percent on the first nine

months  of 2001 although in contrast to the third quarter

of  the  previous  year all Estonian  breweries  had  the

capacities required for high season.



By the end of September, total sales of beverages reached

44.8  million  litres,  a 3 percent  improvement  on  the

figure   achieved  a  year  ago.  Exports   to   Finland,

Lithuania, Latvia and also to the United States and Japan

accounted for 9 percent of the overall result.  The  main

export  articles were Saku Originaal, Saku Porter,  cider

and mineral water.

In  August we entered the domestic gin long drink  market

with  a 0.5-litre canned product, which in terms of  size

is unique in the market.



Sales  results complied with expectations and followed  a

rising  trend in all product groups. Saku Brewery is  the

market   leader.  According  to  the  Estonian  Breweries

Association, in the first nine months of the year we held

48  percent of the Estonian beer market. In October,  the

share reached to 51 percent.



According  to  Brand  Track 2002, a survey  conducted  by

EMOR,  Saku Originaal is the most favoured beer brand  in

Estonia.

The  results  of  EMOR’s survey, which was  conducted  in

March,  June and September 2002, indicate that the  share

of  Estonian  beer consumers who consider Saku  Originaal

their  favourite beer brand has increased: 21 percent  of

the  respondents named Saku Originaal as  their  favoured

beer   brand.  The  third  place  were  claimed  by  Saku

Brewery`s second basic line brand Rock (9%).



Saku  Brewery’s  net  profit for the  first  nine  months

amounted to EEK 44.5 million (EUR 2.8 million); EEK  18.4

million (EUR 1.2 million) of this was earned in the third

quarter.  The corresponding figure for 2001 was EEK  56.2

million.



Net  profit declined compared to the same period in  2001

due  to  long  term investments in brand development  and

beer  and  mineral water packaging development. Marketing

and  production-related  investments  were  directed   at

maintaining a strong leading position in the  local  beer

market.  A  leading position in the local market  ensures

long  term profitability, which is the company`s  overall

objective.



The  period’s investments in non-current assets  totalled

EEK  50.5 million (EUR 3.2 million). The largest  amounts

were  directed  at  ensuring and  improving  quality  and

efficiency.  We  launched improvements  to  bottling  and

canning  lines,  and implemented new  multipack  and  lab

equipment.



To  attain a balance between growth and profitability, we

are  changing  the  budgeting process and  the  level  of

responsibility  for budget management.  The  changes  are

supported  by  motivating  the staff  with  a  systematic

application  of  value-driven assessment  principles  and

results-driven management.



                            

                                                                             

                                                                             

CONSOLIDATED BALANCE                                                         

SHEET

(In thousands)                       EEK                        EUR       

                          30.9.20 30.9.200 31.12.20 30.9.200 30.9.200 31.12.2

                            02        1       01        2        1      001

                                  Adjusted Adjusted          Adjusted Adjuste

                                     **        *                **      d *

                                                                            

ASSETS                                                                       

Cash and bank               1,782   25,684   20,199      114    1,642   1,291

Shares and other                     3,907    3,907               250     250

securities

Trade receivables (Note    28,920   28,702   29,157    1,848    1,834   1,863

2)

Other receivables and       6,403    1,195    2,100      409       76     134

prepayments (Note 3)

Inventories (Note 4)       91,955   84,216   77,441    5,877    5,382   4,949

TOTAL CURRENT ASSETS      129,060  143,704  132,804    8,248    9,184   8,487

                                                                             

Non-current assets                                                           

Long-term financial        16,017   15,600   17,300    1,024      997   1,106

investments (Note 5)

Long-term receivables         120      224      186        8       14      12

(Note 6)

Intangible assets (Note       760      307      747       49       20      48

7)

Tangible assets (Notes 7, 266,531  249,338  249,142   17,034   15,936  15,923

8)

TOTAL NON-CURRENT ASSETS  283,428  265,469  267,375   18,115   16,967  17,089

TOTAL ASSETS              412,488  409,173  400,179   26,363   26,151  25,576

                                                                             

LIABILITIES AND EQUITY                                                       

Current liabilities                                                          

Debt obligations (Note 8)   9,140    1,602    1,714      584      102     110

Trade payables             23,574   21,817   22,314    1,507    1,394   1,426

Payables to the parent                 818                         52        

Tax liabilities (Note 9)   14,936   14,573   12,123      955      932     775

Payables to employees       4,331    3,866    3,329      277      247     213

Other accrued expenses      1,386    4,500      379       88      288      24

TOTAL CURRENT LIABILITIES  53,367   47,176   39,859    3,411    3,015   2,548

                                                                             

Non-current liabilities                                                      

Non-convertible debt        2,125    3,895    3,412      136      249     218

(Note 8)

                                                                             

                                                                             

Equity                                                                       

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       180,441  169,786  169,786   11,532   10,851  10,851

Profit for the period      44,485   56,246   55,052    2,843    3,595   3,518

TOTAL EQUITY              356,996  358,102  356,908   22,816   22,887  22,810

TOTAL LIABILITIES AND     412,488  409,173  400,179   26,363   26,151  25,576

EQUITY

                                                                             

* - Adjusted for a change in the accounting for kegs.

** - Adjusted for changes in the valuation of finished goods and accounting

for kegs.



CONSOLIDATED INCOME                                                      

STATEMENT

(In thousands)                      EEK                        EUR       

                          January January    2001   January  January   2001

                             -       -                 -        -

                          Septemb Septembe          Septemb Septembe     

                             er      r                 er       r

                            2002    2001              2002    2001       

                                  Adjusted Adjusted         Adjusted Adjusted

                                     **       *                 **       *

Revenue                                                                      

Net sales (Note 10)       611,827  586,402  745,937  39,103   37,478   47,674

Change in work in                                                            

progress and

finished goods              2,628    3,119      555     168      199       35

inventories

Other revenue (Note 12)     1,974      569      660     126       36       42

Total revenue             616,429  590,090  747,152  39,397   37,713   47,751

                                                                             

Expenses (Note 13)                                                           

Materials, consumables    392,159  373,034  477,494  25,064   23,841   30,517

and supplies

Other operating expenses  100,876   86,904  115,920   6,447    5,554    7,409

Personnel expenses         40,951   36,289   48,097   2,617    2,319    3,074

Depreciation               32,245   32,193   42,831   2,061    2,057    2,738

Other expenses              4,516    4,412    6,761     289      282      432

Total expenses            570,747  532,832  691,103  36,478   34,053   44,170

                                                                             

OPERATING PROFIT           45,682   57,258   56,049   2,919    3,660    3,581

                                                                             

Financial income (Note        121      250      433       8       16       28

14)

Financial expenses (Note    1,318    1,262    1,430      84       81       91

14)

                                                                             

PROFIT FOR THE PERIOD      44,485   56,246   55,052   2,843    3,595    3,518

                                                                             

Basic earnings per share     5.56     7.03     6.88    0.36     0.45     0.44

(Note 15)

Diluted earnings per         5.56     7.03     6.88    0.36     0.45     0.44

share (Note 15)

                                                                             

* - Adjusted for a change in the accounting for kegs.

** - Adjusted for changes in the valuation of finished goods and accounting

for kegs.





Kristina Seimann

PR Manager

+372 6 508 303