Saku Õlletehase AS                FINANCIAL RESULTS                31.05.2005



FINANCIAL RESULTS FOR THE FIRST QUARTER 2005



BALANCE SHEET                                                                

(In thousands)                        EEK                         €      

                              31.3.    31.3.   31.12.    31.3.  31.3.  31.12.

                               2005     2004     2004     2005   2004    2004

                                                                         

ASSETS                                                                       

 Cash and bank               33,651   13,689   36,461    2,150    875   2,330

 Trade receivables (Note 2)  46,557   33,429   43,319    2,976  2,136   2,768

 Other receivables and        8,136    5,137    6,766      520    328     432

prepayments (Note 3)

 Inventories (Note 4)       122,312  120,790  109,674    7,816  7,719   7,009

TOTAL CURRENT ASSETS        210,656  173,045  196,220   13,462 11,058  12,539

                                                                             

Non-current assets                                                           

 Long-term financial         10,720   12,396   11,029      687    793     707

investments (Note 5)

 Property, plant and        238,371  246,831  239,295   15,234 15,776  15,293

equipment  (Note 6)

 Intangible assets (Note 7)     562      585      596       36     37      38

TOTAL NON-CURRENT ASSETS    249,653  259,812  250,920   15,957 16,606  16,038

                                                                             

TOTAL ASSETS                460,309  432,857  447,140   29,419 27,664  28,577

                                                                             

LIABILITIES AND EQUITY                                                       

Current liabilities                                                          

 Debt obligations (Note 8)       70      712      140        4     46       9

 Trade payables              19,100   17,699   16,266    1,221  1,131   1,039

 Other payables (Note 13)     1,266      980      471       81     63      30

 Tax liabilities (Note 9)    30,518   15,559   23,314    1,950    994   1,490

 Payables to employees        2,396    2,460    3,095      153    157     198

 Other accrued expenses       5,908    5,641    3,078      378    361     196

 Short-term provisions       20,543   22,862   24,636    1,313  1,461   1,575

(Note 10)

TOTAL CURRENT LIABILITIES    79,801   65,913   71,000    5,100  4,213   4,537

                                                                             

Non-current liabilities                                                      

Finance lease liabilities                258                       16        

(Note 8)

TOTAL NON-CURRENT                        258                       16        

LIABILITIES

                                                                             

Equity (Note 11)                                                             

 Share capital               80,000   80,000   80,000    5,113  5,113   5,113

 Statutory 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        244,070  234,032  194,032   15,599 14,957  12,401

 Net profit for the period    4,368      584   50,038      279     37   3,198

TOTAL EQUITY                380,508  366,686  376,140   24,319 23,435  24,040

                                                                             

TOTAL LIABILITIES AND       460,309  432,857  447,140   29,419 27,664  28,577

EQUITY







INCOME STATEMENT                                                     

(In thousands)                        EEK                     €      

                            January-January-       January-January-   

                             March   March          March   March    

                              2005    2004   2004   2005    2004   2004

Revenue                                                                  

 Sales revenue (Note 12)    109,500  84,358 530,86   6,998  5,391  33,928

                                                 5

 Other revenue (Note 14)         19      82    705       1      5      46

Total revenue               109,519  84,440 531,57   6,999  5,396  33,974

                                                 0

                                                                         

Expenses                                                                 

 Changes in work in                                                      

progress and finished

  goods inventories          -4,765  -6,820 -6,105    -305   -436    -390

 Materials, consumables and  51,171  41,014 241,30   3,271  2,621  15,422

supplies used                                    5

 (Note 15)

 Other operating expenses    28,096  24,946 125,29   1,796  1,594   8,008

(Note 15)                                        2

 Personnel expenses (Note    18,476 13,162, 58,081   1,181    841   3,712

15)

 Depreciation and            11,910  10,936 45,025     761    699   2,878

amortization expense

 (Notes 6, 7)

 Other expenses (Note 15)       507     720  3,915      32     46     250

Total expenses              105,395  83,958 467,51   6,736  5,365  29,880

                                                 3

                                                                         

PROFIT FROM OPERATIONS        4,124     482 64,057     263     31   4,094

                                                                         

 Financial income and           244     102     35      16      6       2

expenses (Note 16)

                                                                         

PROFIT FOR THE PERIOD         4,368     584 64,092     279     37   4,096

BEFORE TAX

                                                                         

 Income tax expense                         14,054                    898

                                                                         

NET PROFIT FOR THE PERIOD     4,368     584 50,038     279     37   3,198

                                                                         

Basic earnings per share       0.55    0.07   6.25    0.03   0.00    0.40

(Note 17)

Diluted earnings per share     0.55    0.07   6.25    0.03   0.00    0.40

(Note 17)

     

 Review of operations and performance



Saku  Õlletehase AS' beverage sales for the first  quarter

of 2005 amounted to 14.8m litres, 3.5m litres or 31% up on

the    same    period    in   2004.   Revenues    totalled

EEK   109.5m  (€7.0m),  an  EEK  25.1m  (€1.6m)  or  29.7%

improvement  on a year ago. The main growth  drivers  were

beer and other alcoholic beverages.



According  to the Estonian Breweries Association,  in  the

first  three  months  of  2005 the  Estonian  beer  market

expanded  by around 15%. The accumulated market  share  of

Saku  Õlletehase  AS was 44.5% (a year  ago:  41.9%).  The

upswing  in  market share was facilitated by a  successful

launch of Saku Originaal in novel AM packaging in February

2005. Saku Originaal is the leading beer brand in Estonian

beer  market by being 63% bigger than the next coming beer

brand of the same segment.



Saku  Brewery  was  the first Estonian  beer  producer  to

implement  a  new  quality package, AM bottle:  innovative

unbreakable  quality packaging for beer. The bottle  which

is  used  to package the company’s core brand has  made  a

qualitative  change in Estonian beer market by  increasing

the  share of mainstream and premium beers at the  expense

of products in ordinary plastic packaging whose importance

has grown drastically in the past few years.



Sturdy  growth continued also in the cider  and  gin  long

drink   markets   which  expanded   by   ~15%   and   ~61%

respectively. Saku Õlletehase AS increased  its  share  in

the  cider  market from 33.6% last year to 34.7%  and  its

share in the gin long drink market from 20.1% to 26.3%.



Export  of the company has increased 61% compared to  last

year   same   period.  Since  1  May  Saku  Originaal   is

distributed  in  Finland  by the largest  Finnish  brewery

Sinebrychoff  OY. The export containers of Saku  Originaal

were  included  in the Finnish packaging  deposit  system.

Since  May 1, 2004 has increased exports to Finland  four-

fold.



Expenses for the first quarter totalled EEK 105.4m (€6.7),

EEK  21.4m (€1.4m) or 25.5% up on the same period in 2004.

The  largest  growth  occurred in the cost  of  materials,

consumables  and supplies, largely on account of  expanded

sales and production volumes. The volume of beverages sold

in  one-way  packaging (cans and PET) has  almost  doubled

compared to a year ago, triggering an increase in  related

materials costs and rising operating volumes and intensive

marketing   activities   have  increased   transport   and

advertising expenses. The growth in personnel expenses has

been  affected,  among other things, by the  non-recurring

payments related with organizational restructuring.



Saku  Õlletehase AS’ operating profit for the first  three

months  of  2005  amounted to EEK 4.1m (€0.3m),  EEK  3.6m

(€232,000)  up  on a year ago. Net profit  for  the  first

quarter amounted to EEK 4.4m (€0.3m) against the EEK  0.6m

(€0.04m) earned a year ago.



                                                          



FINANCIAL RATIOS                      January-  January-

                                        March     March

                                        2005      2004

                                                

Operating margin (operating profit  /      3.8%      0.6%

total revenue)

Net   margin  (net  profit  /   total      4.0%      0.7%

revenue)

Return on assets (net profit /             1.0%      0.1%

average total assets)

Return on equity (net profit /             1.2%      0.2%

average equity)

Non-current asset turnover ratio            0.4       0.3

(total revenue / average non-current

assets)

Total assets turnover ratio (total          0.2       0.2

revenue / average total assets)





Kristina Seimann

Communication Manager

+372 6 508 303