Merging of Baltika's subsidiaries


On 28 May 2007, an agreement was signed between the fully owned subsidiaries of 
AS Baltika whereby AS Elina STC will be merged with OÜ Baltika Tailor. The main 
activity of OÜ Baltika Tailor and AS Elina STC is apparel manufacturing.        

The aim of the merger is to consolidate the Baltika Group's production          
operations located in Tallinn, Estonia, into a single company.                  

The merger is an intragroup transaction and does not have significant impact on 
the operations or financial results of Baltika.                                 


Triin Palge                                                                     
Head of investor relations                                                      
+372 630 2886