BALTIKA'S FINANCIAL RESULTS, Q3 and 9M 2009


FINANCIAL HIGHLIGHTS                                                            

- Q3 revenue 225.1 million kroons (-33% yoy)                                    
- Q3 retail sales 198.3 million kroons (-30% yoy)                               
- Q3 gross margin 50% (Q3 2008: 52%)                                            
- Q3 operating loss 23.9 million kroons, a 9.5 million kroons improvement on Q2 
(Q3 2008: operating profit 13.4 million kroons)                                 
- Q3 net loss 28.8 million kroons, a 6.0 million kroons improvement on Q2, net  
loss excluding the effect of exchange rate fluctuations 22.3 million kroons (Q3 
2008: net profit 13.6 million kroons)                                           
- 9M revenue 660.2 million kroons (-26% yoy)                                    
- 9M net loss 126.2 million kroons (9M 2008: net profit 21.4 million kroons)    
- Growth in sales area 18% yoy                                                  

By the end of the third quarter Baltika had generally adapted to the ongoing    
economic crisis in its markets. Operating expenses and inventories had been     
lowered to levels corresponding to sales reduced by the crisis. By the end of   
September, consolidated retail sales per square metre and inventories had       
dropped by 36% and 30% yoy respectively. Average store operating expenses had   
decreased by 29% yoy.                                                           

Normalised inventory levels allowed achieving the highest gross margin of the   
year - 50% in the third quarter against 42% and 48% for the first and second    
quarters respectively.                                                          

In addition to the economic crisis, at the beginning of the new season sales    
were undermined by unusually warm weather prevailing at the end of August and   
throughout September. Despite this, the Group's retail system (at the level of  
stores) succeeded in ending the third quarter with a profit.                    

Altogether, the Group's performance in the third quarter complied with          
management's expectations. The positive trend in the quarterly results is       
particularly visible in net loss excluding currency fluctuations - Q1: -52.2    
million kroons (-3.3 million euros); Q2 -37.2 million kroons (-2.4 million      
euros); Q3 -23.3 million kroons (-1,5 million euros).                           
                                                                                
In the light of stabilised sales, improved margins and the cost-cutting measures
that will be applied until the year-end, Baltika's management sees opportunities
for achieving positive year-over-year results in subsequent quarters.           
                                                                                

Baltika Group ended the third quarter with revenue of 225.1 million kroons (14.4
million euros), a 33.2% decrease yoy. Retail revenue for the third quarter      
shrank by 29.7% yoy. At constant exchange rates, retail revenue contracted by   
14%. Gross margin for the third quarter was 50% (Q3 2008: 52%). Within the first
nine months Baltika opened 22 new stores and closed 15, the total sales area    
growing by 18% yoy.                                                             

REVENUE                                                                         
Revenue by business segment                                                     
--------------------------------------------------------------------------------
| EEK million    | Q3 2009 | Q3 2008 |     +/- |  9M 2009 |  9M 2008 |     +/- |
--------------------------------------------------------------------------------
| Retail         |   198.3 |   282.1 |  -29.7% |    599.3 |    770.4 |  -22.2% |
--------------------------------------------------------------------------------
| Wholesale      |    25.8 |    54.4 |  -52.6% |     59.4 |    115.6 |  -48.6% |
--------------------------------------------------------------------------------
| Other          |     1.0 |     0.4 |  150.0% |      1.5 |      1.5 |      0% |
--------------------------------------------------------------------------------
| Total          |   225.1 |   336.9 |  -33.2% |    660.2 |    887.5 |  -25.6% |
--------------------------------------------------------------------------------

EUR 1 = EEK 15.6466                                                             

RETAIL                                                                          
As a result of the overall economic recession and a decline in consumer         
spending, Baltika's nine-month retail revenue from the Baltic region, Eastern   
Europe and Central Europe decreased by 22%, 24% and 6% yoy respectively.        
Comparable store revenue for the first nine months shrank by 28% yoy. Comparable
store revenues in local currencies dropped by 7% in Russia while growing by 7%  
in Ukraine.                                                                     

Retail sales by market                                                          
--------------------------------------------------------------------------------
| EEK million        |    9M 2009 |    9M 2008 |       +/- |    Percentage, 9M |
|                    |            |            |           |              2009 |
--------------------------------------------------------------------------------
| Lithuania          |      141.7 |      174.0 |      -19% |               24% |
--------------------------------------------------------------------------------
| Estonia            |      136.6 |      175.3 |      -22% |               22% |
--------------------------------------------------------------------------------
| Russia             |      117.7 |      144.0 |      -18% |               19% |
--------------------------------------------------------------------------------
| Ukraine            |       90.8 |      131.6 |      -31% |               16% |
--------------------------------------------------------------------------------
| Latvia             |       77.8 |      108.8 |      -28% |               13% |
--------------------------------------------------------------------------------
| Poland             |       23.3 |       24.9 |       -6% |                4% |
--------------------------------------------------------------------------------
| Czech Republic     |       11.4 |       11.8 |       -3% |                2% |
--------------------------------------------------------------------------------
| Total              |      599.3 |      770.4 |      -22% |              100% |
--------------------------------------------------------------------------------

EUR 1 = EEK 15.6466                                                             

In terms of brands, Monton accounted for 54% or 323 million kroons (20.6 million
euros) of the Group's nine-month retail revenue, a 24% decrease yoy. Mosaic     
contributed 34% or 203 million kroons (13.0 million euros), a 21% decline yoy.  
The hardest-hit by the economic crisis and the general deterioration in the     
retail sector was Baltman, whose nine-month sales dropped by 27% to 42 million  
kroons (2.7 million kroons). The only brand that posted growth in the first nine
months was Ivo Nikkolo (+12%) whose sales rose to 30 million kroons (1.9 million
euros).                                                                         

STORES AND SALES AREA                                                           
At the end of September 2009, Baltika Group had 141 stores with a total sales   
area of 29,277 square metres. Compared with September 2008, the retail system   
grew by 16 stores and over four thousand square metres (net), the sales area    
operated by the Group increasing by 18%.                                        

Stores by market                                                                
--------------------------------------------------------------------------------
|                         | 30 September 2009       | 30 September 2008        |
--------------------------------------------------------------------------------
| Lithuania               | 36                      | 29                       |
--------------------------------------------------------------------------------
| Estonia                 | 32                      | 30                       |
--------------------------------------------------------------------------------
| Russia                  | 30                      | 22                       |
--------------------------------------------------------------------------------
| Ukraine                 | 21                      | 22                       |
--------------------------------------------------------------------------------
| Latvia                  | 15                      | 16                       |
--------------------------------------------------------------------------------
| Poland                  | 5                       | 4                        |
--------------------------------------------------------------------------------
| Czech Republic          | 2                       | 2                        |
--------------------------------------------------------------------------------
| Total stores            | 141                     | 125                      |
--------------------------------------------------------------------------------
| Total sales area, sq m  | 29,277                  | 24,748                   |
--------------------------------------------------------------------------------

In the first nine months, Baltika opened 22 stores (three in the third quarter) 
including seven taken over from a Russian wholesale partner and closed 15 (six  
in the third quarter). According to plan, in the fourth quarter four more stores
will be opened. Concurrently with store openings, several stores will be closed.
The number of stores that will be closed in the fourth quarter may extend to    
five.                                                                           

WHOLESALE                                                                       
Wholesale revenues for the first nine months totalled 59.4 million kroons (3.8  
million euros), a 48.6% decrease yoy. The downturn stems largely from the       
takeover of stores from the Russian wholesale partner and the reclassification  
of associated wholesale revenue as retail sales. The decrease in consumption has
triggered a decline in wholesale orders in the Baltic countries and Russia. On  
the other hand, cooperation with Peek&Cloppenburg, a leading European department
store chain, is continuing successfully - the Mosaic collection is being sold in
18 department stores across Germany, Austria and Poland. Orders for the second  
half-year are almost twice as large as for the first half-year.                 

EARNINGS AND MARGINS                                                            
The Group's performance in 2009 has been strongly influenced by the economic    
recession that has reduced sales, lowered profit margins, triggered currency    
devaluations and required adjustment of operating expenses to the new sales     
trends. If in the first half-year the Group concentrated on adapting inventory  
levels to the new sales figures and making cost saving decisions, then in the   
third quarter the focus shifted on maintaining the cost base and financing      
purchases for the autumn season so as to secure achievement of the sales        
targets. The gross margin for the first nine months was 47% (9M 2008: 55%) while
gross profit dropped by 36% yoy to 310 million kroons (19.8 million euros).     

The Group's results remained adversely impacted by the currency devaluations    
that began in November 2008. According to the exchange rates quoted by the Bank 
of Estonia, compared with a year ago the average exchange rates for the first   
nine months weakened as follows: the Ukrainian hryvna -32.7%, the Polish zloty  
-21%, the Russian rouble -17.4% and the Czech koruna -6.7%.                     

An important step in cutting the costs of the retail system is reducing store   
operating expenses including rental charges. In this area, some success has     
already been achieved - compared with the first nine months of 2008 average     
store operating expenses per square metre decreased by 22% - rental costs       
dropped by 21% and personnel expenses by 25%. The corresponding figures for the 
third quarter were: -29% for store operating expenses, -29% for rental costs and
-32% for personnel expenses. Thanks to efforts made, in the third quarter the   
retail system began generating a profit (at the store level). The Group is      
continuing negotiations with shopping centres regarding better lease terms and  
is closing any inefficient stores.                                              

Distribution costs for the first nine months decreased by 50.3 million kroons   
(3.2 million euros) yoy (-12%), the figure for the third quarter declining by   
28.0 million kroons (1.8 million euros) yoy (-18%). At the same time, the sales 
area grew by 18%.                                                               

Thanks to cost-cutting, administrative and general expenses for the first nine  
months decreased by 15% yoy and the personnel expenses of Baltika's Estonian    
manufacturing units contracted by 25% or 17 million kroons (1.1 million euros)  
yoy.                                                                            

Owing to exchange rate fluctuations, the Group's financial result for the first 
nine months was weakened by foreign exchange losses of 14.4 million kroons (0.9 
million euros), including exchange losses of 6.5 million kroons (0.4 million    
euros) incurred in the third quarter. For comparison, foreign exchange losses   
for the first nine months of 2008 totalled 1.8 million kroons (0.1 million      
euros) including third quarter exchange gain of 2.0 million kroons (0.12 million
euros).                                                                         

Baltika ended the third quarter of 2009 with an operating loss of 23.9 million  
kroons (1.5 million euros), a 9.5 million kroon (0.6 million euro) improvement  
on the second quarter. The third quarter of 2008 ended in an operating profit of
11.8 million kroons (0.8 million euros). In the first quarter of 2008, the Group
benefited from investment property revaluation gains of 11.25 million kroons    
(0.7 million euros) that were recognised as other operating income. In 2009,    
there has been no similar income.                                               

The Group's EBITA has been improving quarterly (loss growth is decelerating) and
in September it was positive for the first time also on a monthly basis.        

In connection with growth in borrowings, interest expenses for the first nine   
months totalled 10.5 million kroons (0.7 million euros), a 2.3 million kroon    
(0.15 million euro) increase on a year ago.                                     

The Group ended the first nine months of 2009 with a consolidated net loss      
(after tax and minority interest) of 126.0 million kroons (8.1 million euros).  
The Group's net loss for the third quarter was 28.8 million kroons (1.8 million 
euros), a 6.2 million kroon (0.4 million euro) improvement on the second        
quarter. The third quarter for 2008 ended with a net profit of 13.6 million     
kroons (0.9 million euros).                                                     


FINANCIAL POSITION                                                              
At 30 September 2009, Baltika's consolidated assets totalled 743 million kroons 
(48.5 million euros), 38.8 million kroons (2.5 million euros) down from the     
previous year-end.                                                              

Compared with the end of 2008 the Group's trade and other receivables decreased 
by 23.0 million kroons (1.5 million euros) to 75.4 million kroons (4.8 million  
euros). Within the same period, trade and other payables decreased by 24.0      
million kroons (1.5 million euros) to 127.9 million kroons (8.2 million euros). 
Although trade payables still represent a problem area where adjustment has not 
been completed, in the third quarter they dropped by 11.4 million kroons (0,73  
million euros) and should continue decreasing until the year-end. At the end of 
September, inventories totalled 215.1 million kroons (13.8 million euros), 25.4%
down from the end of 2008 (-73.3 million kroons/-4.7 million euros) despite the 
period's 8% increase in retail space.                                           

At the end of September, the Group's borrowings totalled 362 million kroons     
(23.1 million euros), comprising of bank loans of 355.6 million kroons (22.7    
million euros) and finance lease liabilities of 6.4 million kroons (0.4 million 
euros). Compared with the end of 2008, the debt burden has expanded by 89.7     
million kroons (5.7 million euros), 75.8 million kroons (4.8 million euros) of  
which represents an addition to existing construction loans. The growth in the  
Group's debt burden is largely attributable to the development of the Baltika   
Quarter that was financed solely with bank loans. At the end of September,      
borrowings related to real estate development totalled 144.6 million kroons (9.2
million euros).                                                                 

Construction loans have increased the Group's net debt (interest-bearing        
liabilities less cash and bank balances) to equity ratio, which at the end of   
September 2009 stood at 176%. At the end of 2008 the corresponding figure was   
65.6%.                                                                          

INVESTMENT                                                                      
The Group's investments for the first nine months of 2009 totalled 97.5 million 
kroons / 6.2 million euros (9M 2008: 97.7 million kroons /6.2 million euros).   
Investments in the Baltika Quarter totalled 75.8 million kroons (4.8 million    
euros), investments in the retail system amounted to 15.8 million kroons (1.0   
million euros) and other investments totalled 5.9 million kroons (0.4 million   
euros).                                                                         

PEOPLE                                                                          
At the end of September 2009, Baltika Group employed 1,757 (30 September 2008:  
1,921) people, including 966 (939) in the retail system, 603 (754) in           
manufacturing and 188 (228) at the head office. The number of staff employed    
outside Estonia totalled 768 (745) representing 44% of all personnel. The       
period's average number of staff was 1,840 (9M 2008: 1,941).                    

The Group's employee remuneration expenses for the first nine months of 2009    
totalled 150.4 million kroons / 9.6 million euros (9M 2008: 174.4 million kroons
/ 11.1 million euros), a 14% decrease yoy. The figure includes the remuneration 
of the members of the supervisory council and management board of 3.0 million   
kroons / 0.2 million euros (9M 2008: 3.1 million kroons / 0.2 million euros). In
the third quarter, the fees paid to members of the supervisory council and      
management board dropped by 11.5% to 0.98 million kroons / 0.06 million euros.  


KEY FIGURES OF THE GROUP (9 months 2009)                                        
--------------------------------------------------------------------------------
|                                    |  30.09.2009 |  30.09.2008 |         +/- |
--------------------------------------------------------------------------------
| Revenue (EEK million)              |       660,2 |       887,5 |      -25,6% |
--------------------------------------------------------------------------------
| Retail sales (EEK million)         |       599,3 |       770,4 |      -22,2% |
--------------------------------------------------------------------------------
| Share of retail sales in revenue   |         91% |         87% |             |
--------------------------------------------------------------------------------
| Number of stores                   |         141 |         125 |       12,8% |
--------------------------------------------------------------------------------
| Sales area (sqm)                   |      29 277 |      24 748 |       18,3% |
--------------------------------------------------------------------------------
| Number of employees (end of        |       1 757 |       1 921 |       -8,5% |
| period)                            |             |             |             |
--------------------------------------------------------------------------------
| Gross margin                       |       47,0% |       54,7% |             |
--------------------------------------------------------------------------------
| Operating margin                   |      -17,0% |        3,2% |             |
--------------------------------------------------------------------------------
| EBT margin                         |      -19,0% |        2,3% |             |
--------------------------------------------------------------------------------
| Net margin                         |      -19,1% |        2,4% |             |
--------------------------------------------------------------------------------
| Current ratio                      |         1,0 |         1,6 |      -37,5% |
--------------------------------------------------------------------------------
| Inventory turnover                 |        3,76 |        4,90 |      -23,2% |
--------------------------------------------------------------------------------
| Debt to equity ratio               |      178,9% |       69,9% |             |
--------------------------------------------------------------------------------
| Return on equity                   |      -78,7% |        7,0% |             |
--------------------------------------------------------------------------------
| Return on assets                   |      -25,7% |        3,3% |             |
--------------------------------------------------------------------------------


EUR 1 = EEK 15.6466                                                             

Underlying formulas                                                             
Gross margin = (Revenue - Cost of sales)/ Revenue                               
Operating margin = Operating profit / Revenue                                   
EBT margin = Profit before income tax / Revenue                                 
Net margin = Net profit (attributable to the parent) / Revenue                  
Current ratio = Current assets / Current liabilities                            
Inventory turnover = Revenue / Average inventories*                             
Debt to equity ratio = Interest-bearing liabilities / Equity                    
Return on equity = Net profit (attributable to the parent)/ Average equity*     
Return on assets = Net profit (attributable to the parent)/ Average total       
assets*                                                                         
*12 months' average                                                             


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
(unaudited, in EEK thousands)                                                   
--------------------------------------------------------------------------------
|                                 |  Q3 2009 |  Q3 2008 |  9m 2009 |   9m 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue                         |  225 132 |  336 896 |  660 181 |   887 471 |
--------------------------------------------------------------------------------
| Cost of goods sold              | -111 460 | -162 376 | -350 140 |  -401 693 |
--------------------------------------------------------------------------------
| Gross profit                    |  113 672 |  174 520 |  310 041 |   485 778 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution costs              | -120 461 | -148 510 | -376 760 |  -427 086 |
--------------------------------------------------------------------------------
| Administrative and general      |  -10 135 |  -11 075 |  -31 696 |   -37 222 |
| expenses                        |          |          |          |           |
--------------------------------------------------------------------------------
| Other operating income          |      607 |      688 |      642 |    12 917 |
--------------------------------------------------------------------------------
| Other operating expenses        |   -7 552 |   -2 217 |  -14 604 |    -5 758 |
--------------------------------------------------------------------------------
| Operating profit (loss)         |  -23 869 |   13 406 | -112 377 |    28 629 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income (expenses)     |   -4 447 |   -1 566 |  -13 309 |    -8 314 |
--------------------------------------------------------------------------------
| Interest expenses, net          |   -4 622 |   -3 143 |  -10 470 |    -8 232 |
--------------------------------------------------------------------------------
| Foreign exchange losses, net    |      172 |    1 584 |   -2 837 |      -356 |
--------------------------------------------------------------------------------
| Other financial income          |        3 |       -7 |       -2 |       274 |
| (expenses), net                 |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit (loss) before income tax |  -28 316 |   11 840 | -125 686 |    20 315 |
--------------------------------------------------------------------------------
| Income tax                      |     -112 |      690 |     -344 |      -408 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit (loss)               |  -28 428 |   12 530 | -126 030 |    19 907 |
--------------------------------------------------------------------------------
| Net profit (loss) attributable  |  -28 778 |   13 624 | -126 162 |    21 435 |
| to equity holders of the parent |          |          |          |           |
| company                         |          |          |          |           |
--------------------------------------------------------------------------------
| Net profit (loss) attributable  |          |          |          |           |
| to minority shareholders        |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income      |          |          |          |           |
--------------------------------------------------------------------------------
| Currency translation            |    3 811 |     -901 |   -2 184 |       -72 |
| differences                     |          |          |          |           |
--------------------------------------------------------------------------------
| Total comprehensive  income     |  -24 617 |   11 629 | -128 214 |    19 835 |
--------------------------------------------------------------------------------
| Comprehensive  income           |  -24 967 |   12 733 | -127 134 |    21 712 |
| attributable to equity holders  |          |          |          |           |
| of the parent company           |          |          |          |           |
--------------------------------------------------------------------------------
| Comprehensive  income           |      350 |   -1 104 |   -1 080 |    -1 877 |
| attributable to minority        |          |          |          |           |
| shareholders                    |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings (loss) per       |    -1,54 |     0,73 |    -6,77 |      1,15 |
| share, EEK                      |          |          |          |           |
--------------------------------------------------------------------------------
| Diluted earnings (loss) per     |    -1,54 |     0,73 |    -6,77 |      1,15 |
| share, EEK                      |          |          |          |           |
--------------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
(unaudited, in EUR thousands)                                                   
--------------------------------------------------------------------------------
|                                 |  Q3 2009 |  Q3 2008 |  9m 2009 |   9m 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue                         |   14 389 |   21 532 |   42 193 |    56 720 |
--------------------------------------------------------------------------------
| Cost of goods sold              |   -7 124 |  -10 378 |  -22 378 |   -25 673 |
--------------------------------------------------------------------------------
| Gross profit                    |    7 265 |   11 154 |   19 815 |    31 047 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution costs              |   -7 699 |   -9 492 |  -24 079 |   -27 296 |
--------------------------------------------------------------------------------
| Administrative and general      |     -648 |     -708 |   -2 026 |    -2 379 |
| expenses                        |          |          |          |           |
--------------------------------------------------------------------------------
| Other operating income          |       39 |       44 |       41 |       826 |
--------------------------------------------------------------------------------
| Other operating expenses        |     -483 |     -142 |     -933 |      -368 |
--------------------------------------------------------------------------------
| Operating profit (loss)         |   -1 526 |      857 |   -7 182 |     1 830 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income (expenses)     |     -284 |     -100 |     -851 |      -531 |
--------------------------------------------------------------------------------
| Interest expenses, net          |     -295 |     -201 |     -669 |      -526 |
--------------------------------------------------------------------------------
| Foreign exchange losses, net    |       11 |      101 |     -181 |       -23 |
--------------------------------------------------------------------------------
| Other financial income          |        0 |        0 |        0 |        18 |
| (expenses), net                 |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit (loss) before income tax |   -1 810 |      757 |   -8 033 |     1 298 |
--------------------------------------------------------------------------------
| Income tax                      |       -7 |       44 |      -22 |       -26 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit (loss)               |   -1 817 |      801 |   -8 055 |     1 272 |
--------------------------------------------------------------------------------
| Net profit (loss) attributable  |   -1 839 |      871 |   -8 063 |     1 370 |
| to equity holders of the parent |          |          |          |           |
| company                         |          |          |          |           |
--------------------------------------------------------------------------------
| Net profit (loss) attributable  |       22 |      -70 |        8 |       -98 |
| to minority shareholders        |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income      |          |          |          |           |
--------------------------------------------------------------------------------
| Currency translation            |      244 |      -58 |     -140 |        -5 |
| differences                     |          |          |          |           |
--------------------------------------------------------------------------------
| Total comprehensive  income     |   -1 573 |      743 |   -8 194 |     1 268 |
--------------------------------------------------------------------------------
| Comprehensive  income           |   -1 596 |      814 |   -8 125 |     1 388 |
| attributable to equity holders  |          |          |          |           |
| of the parent company           |          |          |          |           |
--------------------------------------------------------------------------------
| Comprehensive  income           |       22 |      -71 |      -69 |      -120 |
| attributable to minority        |          |          |          |           |
| shareholders                    |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings (loss) per       |    -0,10 |     0,05 |    -0,42 |      0,07 |
| share, EUR                      |          |          |          |           |
--------------------------------------------------------------------------------
| Diluted earnings (loss) per     |    -0,10 |     0,05 |    -0,42 |      0,07 |
| share, EUR                      |          |          |          |           |
--------------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    
(unaudited, in EEK thousands)                                                   
--------------------------------------------------------------------------------
|                                             |    30.09.2009 |     31.12.2008 |
--------------------------------------------------------------------------------
| ASSETS                                      |               |                |
--------------------------------------------------------------------------------
| Current assets                              |               |                |
--------------------------------------------------------------------------------
| Cash and bank                               |         5 498 |          8 671 |
--------------------------------------------------------------------------------
| Trade and other receivables                 |        75 377 |         98 369 |
--------------------------------------------------------------------------------
| Inventories                                 |       215 149 |        288 431 |
--------------------------------------------------------------------------------
| Total current assets                        |       296 024 |        395 471 |
--------------------------------------------------------------------------------
| Non-current assets                          |               |                |
--------------------------------------------------------------------------------
| Deferred income tax asset                   |         5 547 |          5 547 |
--------------------------------------------------------------------------------
| Other non-current assets                    |         8 383 |          6 103 |
--------------------------------------------------------------------------------
| Investment property                         |       207 364 |        134 098 |
--------------------------------------------------------------------------------
| Property, plant and equipment               |       164 221 |        180 580 |
--------------------------------------------------------------------------------
| Intangible assets                           |        61 089 |         59 604 |
--------------------------------------------------------------------------------
| Total non-current assets                    |       446 604 |        385 932 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                                |       742 628 |        781 403 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES                      |               |                |
--------------------------------------------------------------------------------
| Current liabilities                         |               |                |
--------------------------------------------------------------------------------
| Borrowings                                  |       117 909 |        103 967 |
--------------------------------------------------------------------------------
| Trade and other payables                    |       175 933 |        207 946 |
--------------------------------------------------------------------------------
| Total current liabilities                   |       293 842 |        311 913 |
--------------------------------------------------------------------------------
| Non-current liabilities                     |               |                |
--------------------------------------------------------------------------------
| Borrowings                                  |       244 109 |        168 388 |
--------------------------------------------------------------------------------
| Other liabilities                           |            79 |              0 |
--------------------------------------------------------------------------------
| Deferred income tax liability               |         2 196 |          2 196 |
--------------------------------------------------------------------------------
| Total non-current liabilities               |       246 384 |        170 584 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                           |       540 226 |        482 497 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY                                      |               |                |
--------------------------------------------------------------------------------
| Share capital at par value                  |       226 449 |        186 449 |
--------------------------------------------------------------------------------
| Reserves                                    |        26 133 |         26 133 |
--------------------------------------------------------------------------------
| Retained earnings                           |        81 487 |        108 722 |
--------------------------------------------------------------------------------
| Net profit (loss) for the period            |      -126 162 |        -18 947 |
--------------------------------------------------------------------------------
| Currency translation differences            |        -8 137 |         -7 165 |
--------------------------------------------------------------------------------
| Total equity attributable to equity holders |       199 770 |        295 192 |
| of the parent company                       |               |                |
--------------------------------------------------------------------------------
| Minority interest                           |         2 632 |          3 714 |
--------------------------------------------------------------------------------
| TOTAL EQUITY                                |       202 402 |        298 906 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY                |       742 628 |        781 403 |
--------------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    
(unaudited, in EUR thousands)                                                   
--------------------------------------------------------------------------------
|                                             |    30.09.2009 |     31.12.2008 |
--------------------------------------------------------------------------------
| ASSETS                                      |               |                |
--------------------------------------------------------------------------------
| Current assets                              |               |                |
--------------------------------------------------------------------------------
| Cash and bank                               |           351 |            554 |
--------------------------------------------------------------------------------
| Trade and other receivables                 |         4 817 |          6 287 |
--------------------------------------------------------------------------------
| Inventories                                 |        13 751 |         18 434 |
--------------------------------------------------------------------------------
| Total current assets                        |        18 919 |         25 275 |
--------------------------------------------------------------------------------
| Non-current assets                          |               |                |
--------------------------------------------------------------------------------
| Deferred income tax asset                   |           355 |            355 |
--------------------------------------------------------------------------------
| Other non-current assets                    |           536 |            390 |
--------------------------------------------------------------------------------
| Investment property                         |        13 253 |          8 570 |
--------------------------------------------------------------------------------
| Property, plant and equipment               |        10 496 |         11 541 |
--------------------------------------------------------------------------------
| Intangible assets                           |         3 904 |          3 809 |
--------------------------------------------------------------------------------
| Total non-current assets                    |        28 543 |         24 666 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                                |        47 463 |         49 941 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES                      |               |                |
--------------------------------------------------------------------------------
| Current liabilities                         |               |                |
--------------------------------------------------------------------------------
| Borrowings                                  |         7 536 |          6 645 |
--------------------------------------------------------------------------------
| Trade and other payables                    |        11 244 |         13 290 |
--------------------------------------------------------------------------------
| Total current liabilities                   |        18 780 |         19 935 |
--------------------------------------------------------------------------------
| Non-current liabilities                     |               |                |
--------------------------------------------------------------------------------
| Borrowings                                  |        15 601 |         10 762 |
--------------------------------------------------------------------------------
| Other liabilities                           |             5 |              0 |
--------------------------------------------------------------------------------
| Deferred income tax liability               |           140 |            140 |
--------------------------------------------------------------------------------
| Total non-current liabilities               |        15 747 |         10 902 |
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| TOTAL LIABILITIES                           |        34 527 |         30 837 |
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| EQUITY                                      |               |                |
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| Share capital at par value                  |        14 473 |         11 916 |
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| Reserves                                    |         1 670 |          1 670 |
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| Retained earnings                           |         5 208 |          6 949 |
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| Net profit (loss) for the period            |        -8 063 |         -1 211 |
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| Currency translation differences            |          -520 |           -458 |
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| Total equity attributable to equity holders |        12 768 |         18 866 |
| of the parent company                       |               |                |
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| Minority interest                           |           168 |            237 |
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| TOTAL EQUITY                                |        12 936 |         19 104 |
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| TOTAL LIABILITIES AND EQUITY                |        47 463 |         49 941 |
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Ülle Järv                                                                       
CFO, Member of the Management Board                                             
+372 630 2731