Baltika's consolidated net sales in February totalled 84.7 million kroons and increased by 12% compared to February previous year. Retail sales grew 23% yoy and wholesale decreased 20% yoy. Sales in February -------------------------------------------------------------------------------- | EEK million | 2/2008 | 2/2007 | Change | -------------------------------------------------------------------------------- | Retail | 70.1 | 57.1 | 23% | -------------------------------------------------------------------------------- | Wholesale | 14.4 | 17.9 | -20% | -------------------------------------------------------------------------------- | Other | 0.2 | 1.0 | -80% | -------------------------------------------------------------------------------- | Total | 84.7 | 76.0 | 12% | -------------------------------------------------------------------------------- In the month of February, Baltika's retail sales grew 40% in Lithuania, 35% in Poland, 28% in Latvia, 21% in Russia, 14% in Estonia and 10% in Ukraine. At the end of February, Baltika Group had 125 stores with a total sales area of 23,840 square metres. Two stores were closed during the month. Cumulative two month sales of Baltika totalled 176 million kroons (+6% yoy), including retail sales of 148 million kroons (+10%) and wholesale of 28 million kroons (-4%). Because of the Group's current development phase, the year may be divided into two parts. The main objectives of the first half-year are to improve sales efficiency and to streamline the store portfolio. Around five to six stores will be opened and closed. Retail revenues are expected to increase by 10-12% whereas wholesale revenues should decline by 15-20% yoy. In the second half of the year, rapid retail growth should be restored: the Group intends to open 14-18 stores, retail revenues should grow at the rate of 20-25% and wholesale revenues should remain at the level of the prior year. The revenue target for 2008 is 1.3 billion kroons (83 million euros), up 13%. The number of stores will be 140-145 at the end of the year. EUR 1 = EEK 15.6466 Triin Palge Head of investor relations +372 630 2886