The Management Board of AS Baltika makes a proposal for allocating the net profit of 2006 as follows: 1. transfer the net profit of the year ended on 31 December 2006 in the amount of 87,376 thousand kroons (5,584 thousand euros) to the retained earnings; 2. increase the share capital by fund issue in the amount of 124,299 thousand kroons (7,944 thousand euros) on the account of retained earnings and share premium by issuing 2 new shares per each existing share. After the fund issue, the share capital shall equal to 186,448 thousand kroons (11,916 thousand euros) consisting of 18,644,850 ordinary shares; 3. transfer 12,822 thousand kroons (819 thousand euros) from retained earnings to statutory reserve; 4. distribute 14,916 thousand kroons (953 thousand euros) to the shareholders of the company. The dividend per share applied to the number of shares after the fund issue shall be 0.80 kroons (0.05 euros). (Dividend per share before the fund issue is 2.40 kroons/0.15 euros). Triin Palge Head of investor relations +372 630 2886