Market announcement

Title

Consolidated interim report for Q2 and 6 months of 2009

Message

Business results                                                                

In Q2 2009, seasonal factors improved consumer demand in the major lingerie     
markets of Silvano Fashion Group (“SFG” or the “Company”, and together with its 
subsidiaries the “Group”). The economy in the key markets of the Group (Russia, 
Belarus and Ukraine) revealed signs of stabilization and slight recovery after  
the serious slowdown of growth in Q4 2008 and Q1 2009. However, demand remains  
considerably below 2008 levels. The management estimates that in the first half 
of 2009 the apparel market demand has decreased by approximately 30% and        
lingerie market by 25% compared to the respective period in 2008.               

Overall Q2 2009 demonstrated a 27.9% increase in sales from continuing          
operations compared to Q1 2009 while being 27.8% lower than in Q2 2008. Retail  
operations in Belarus were 13.7% up compared to H1 2008. The Group achieved a   
like-for-like increase in retail sales in Russia as compared to the respective  
period in 2008. Lingerie retail performance in the Baltic countries decreased by
15.4% compared to H1 2008.                                                      
                                                                                
In 2008, the management of the Group decided to rebrand Oblicie lingerie stores 
in Russia and to focus on the development of Milavitsa lingerie retail chain    
mainly through franchising. In Q2 2009, 17 Oblicie shops were rebranded to      
Milavitsa increasing the number of Milavitsa stores in direct operations in     
Russia to 21. The remaining Oblicie stores will be rebranded in Q3 2009. The    
management believes that the rebranding will increase the contribution of       
“Milavitsa” brand name towards the overall performance of Russian lingerie      
retail and wholesale operations and will develop and promote the Milavitsa brand
in Russia.                                                                      

The Group closed 3 lingerie stores in Q2 and will continue closing inefficient  
stores in the second half of the year targeting to have zero loss making stores 
in operations. The current estimate is that a total of approximately 18 shops   
will be closed by the end of the year in Russia and that the restructuring of   
Russian retail operations will be continued in the second half of 2009.         

Due to increased uncertainty in the marketplace and sharply falling demand in Q4
2008 and Q1 2009, the Group's manufacturing companies reduced their production  
and purchasing volumes in H1 2009. As the result of the adjustments in          
production and sourcing volumes as well as in the production planning process,  
the Group was able to decrease inventories to normal levels by 30 June 2009,    
after being overstocked over prior 6 months.                                    

Financial performance                                                           

The Group's sales from continuing operations amounted to EEK 569,066 thousand   
(EUR 36,370 thousand) in the 6 months' period ended 30 June 2009, representing a
30.1% decline as compared to the respective period in the previous year. Overall
wholesales from continuing operations decreased by 34.7%, while retail          
continuing operations presented a decrease of 7.2%. The proportion of retail    
sales in total sales increased by 5.8% and reached 24.9% of total sales in H1   
2009. The Group's sales from continuing operations in Q2 2009 amounted to EEK   
319,394 thousand (EUR 20,413 thousand) with resulting decrease of 27,8% as      
compared to the respective period in prior year.                                

The Group's gross margin from continuing operations in the 6 months' period     
improved slightly and was 44.7%, as compared to 43.6% in the respective period  
in the previous year. Positive effect was observed in Q2 2009 mainly due to the 
increased sales prices in key markets after devaluation of local currencies     
while benefiting from devaluation impact of Belorussian Rouble in respect of    
cost of goods.                                                                  

The consolidated reported operating profit from continuing operations amounted  
to EEK 30,775 thousand (EUR 1,967 thousand), representing a 75.1% decline       
compared to H1 2008. The consolidated reported operating margin from continuing 
operations was 5.4% (15.2% in H1 2008).                                         

In H1 2009 the Group continued with the restructuring of Russian retail         
operations. One-off expenses related to restructuring of Russian operations in  
H1 2009 amounted to EEK 32,216 thousand (EUR 2,059 thousand), including EEK     
13,863 thousand (EUR 886 thousand) in Q1 2009 and EEK 18,353 thousand (EUR 1,173
thousand) in Q2 2009, and partially related to initiatives started in prior     
periods. The Group will continue closing inefficient stores in the second half  
of the year with current estimate of 18 more shops to be closed by the end of   
the year. As of 30 June 2009, provisions to cover future restructuring losses   
related to Russian retail chain restructuring in future amounted to EEK 9,826   
thousand (EUR 628 thousand). The operating loss of Russian retail operations    
including the one-off expenses amounted to EEK 52,213 thousand (EUR 3,337       
thousand) in 6 months period ended 30 June 2009.                                

Loan receivables in the amount of EEK 20,215 thousand (EUR 1,292 thousand) was  
fully provided based on the management's assessment of the recoverability of the
loan in H1 2009. The expenses related to the provision have been recognized in  
other operating expenses from continuing operations in H1 2009. The management  
will continue the actions to recover the loan balance and certain progress on   
the loan restructuring have been reached in Q2 2009.                            

In total one-off continuing operating losses related to restructuring and loan  
write-off amounted to EEK 22,797 thousand (EUR 1,457 thousand) in Q2 2009 and to
EEK 52,432 thousand (EUR 3,351 thousand) in the 6 months' period ended 30 June  
2009. As the result, consolidated normalised operating profit from continuing   
operations amounted to EEK 83,209 thousand (EUR 5,318 thousand) for the 6       
months' period ended 30 June 2009, representing a 32.6% decline compared to H1  
2008. The consolidated normalised operating margin from continuing operations   
reached 14.6% (15.2% in H1 2008).                                               

On 30 June 2009 the Group closed the transaction for the sale of all shares in  
PTA Gruup AS (“PTA”) held by the Group (which represent 100% of the share       
capital of PTA) to PTA Holding OÜ for total consideration of EEK 15,224 thousand
(EUR 973 thousand), including EEK 7,401 thousand (EUR 473 thousand) paid upon   
closing  by way of taking over certain liabilities of the Group and the         
remaining part of the purchase price being payable in cash by 31 December 2011  
at the latest and carrying interest until full payment. The transaction resulted
in a EEK 23,845 thousand (EUR 1,524 thousand) loss in the consolidated results  
of the Group in Q2 2009 (Note 15). Further details of the transaction are       
provided in section ‘Key events'. In accordance with the requirements of the    
International Financial Reporting Standards, the sold PTA operations (apparel   
business line) are now regarded as discontinued operations for the purposes of  
financial reporting. Accordingly, PTA's financial performance is not            
consolidated in sales and expenses, but instead the consolidated loss from PTA's
business operations in the amount of EEK 12,189 thousand (EUR 779 thousand) for 
the 6 months' period ended 30 June 2009 and the loss generated by the sales     
transaction are recorded separately in the consolidated income statement as a   
loss from discontinued operations in the total amount of EEK 36,034 thousand    
(EUR 2,303 thousand).                                                           

Consolidated net profit from foreign exchange rate fluctuations amounted to EEK 
11,954 thousand (EUR 764 thousand) in the 6 months' period ended 30 June 2009.  
SP ZAO Milavitsa accrued a foreign exchange gain in the amount of EEK 34,313    
thousand (EUR 2,193 thousand)  that was mainly caused mainly by EUR-denominated 
intercompany trading in Q1 2009, while Russian operations suffered a loss from  
foreign exchange rate fluctuations. Starting from April 2009, all trading to    
Russia is Russian Rouble denominated to minimise unrealized foreign exchange    
gains and losses within the Group.                                              

Corporate income tax from continuing operations amounted to EEK 45,703 thousand 
(EUR 2,921 thousand) and effective tax rate for the Group increased             
significantly. Income tax expense was higher than anticipated due to taxable    
foreign exchange gains in Milavitsa. However, high overall effective tax rate is
the temporary result of loss making subsidiaries' net loss position for the     
reporting period, non-tax deductable one-off expenses discussed above and other 
non-tax deductable expenses in Belarus (mainly employee remuneration).          

Consolidated reported net loss from continuing operations attributable to equity
holders amounted to EEK 15,772 thousand (EUR 1,008 thousand), compared to net   
profit of EEK 41,369 thousand (EUR 2,644 thousand) in H1 2008; reported net     
margin from continuing operations was -2.8% (down from a positive margin of 5.1%
in H1 2008). Consolidated normalised net profit from continuing operations,     
attributable to equity holders amounted to EEK 32,420 thousand (EUR 2,072       
thousand), compared to a net profit of EEK 41,369 thousand (EUR 2,644 thousand) 
in H1 2008; normalised net margin from continuing operations was 5.7% (5.1% in  
H1 2008).                                                                       

In H1 2009 the Group's return on equity was negative and amounted to -9.1% (4.4%
in H1 2008) and return on assets was -5.1% (2.9% in H1 2008).                   

Financial position                                                              

As of 30 June 2009 consolidated assets amounted to EEK 832,414 thousand (EUR    
53,201 thousand) representing a decrease of 31.1% as compared to the position as
of 31 December 2008. The value of total asset base in EUR terms was             
significantly impacted by the devaluation of the Belorussian Rouble which       
depreciated against the Euro by 29.3% in H1 2009, decreasing the value of assets
based in Belarus in EUR terms. Furthermore, due to the closing of the PTA sales 
transaction on 30 June 2009 and the full recognition of the related disposal    
loss, the financial position of PTA is not consolidated as of 30 June 2009,     
causing a further decrease in the assets of the Group.                          

Property, plant and intangibles balances decreased by EEK 103,925 thousand      
(EUR 6,642 thousand) as compared to 31 December 2008, the key reason being the  
impact of the foreign exchange rate in the amount of EEK 54,732 thousand (EUR   
3,498 thousand) and the sale of PTA in the amount of EEK 23,360 thousand (EUR   
1,493 thousand).                                                                

Trade receivables have remained at the level of 31 December 2008 and as of 30   
June 2009 amounted to EEK 168,498 thousand (EUR 10,769 thousand). Payment       
discipline of key customers in Russia improved during H1 2009. Inventory balance
decreased by EEK 160,190 thousand (EUR 10,238 thousand) and amounted to EEK     
274,222 thousand (EUR 17,526 thousand) as at 30 June 2009. This was partially   
related to disposal of PTA; however, a major decrease was achieved by changes in
the production planning to adjust to the new level of the working capital       
resulting from decreasing sales volumes and devaluation of the Belorussian      
Rouble which depreciated against the Euro by 29.3% in H1 2009, decreasing the   
value of inventories based in Belarus in EUR terms.                             

Foreign exchange fluctuations also left a negative impact on the Group's equity,
in the form of a negative change in currency translation difference in the      
amount of EEK 110,741 thousand (EUR 7,077 thousand). On the overall basis,      
equity attributable to equity holders decreased by EEK 146,869 thousand (EUR    
9,386 thousand) and amounted to EEK 494,378 thousand (EUR 31,597 thousand) as of
30 June 2009.                                                                   

Current liabilities decreased by EEK 202,774 thousand (EUR 12,960 thousand) in  
the 6 months' period, in line with management expectations.                     

The liquidity position of the Group improved during Q2 2009 with respect to the 
total balance of borrowings and related maturities. Current and non-current     
loans and borrowings decreased by EEK 94,756 thousand (EUR 6,056 thousand) in Q2
to EEK 47,910 thousand (EUR 3,062 thousand) as of 30 June 2009. Loans received  
and loans repaid during the 6 months' period amounted to EEK 92,362 thousand    
(EUR 5,903 thousand) and EEK 153,414 thousand (EUR 9,805 thousand) respectively,
including finance lease liabilities repaid in the amount of EEK 3,317 thousand  
(EUR 212 thousand). PTA loan balance in the amount of EEK 31,606 thousand (EUR  
2,020 thousand) was eliminated from consolidated financial position as the      
result of the PTA sales transaction. In July 2009 a credit line facility of     
Lauma Lingerie AS was prolonged with Unicredit Bank in Latvia, decreasing the   
available facility's limit with the bank from EEK 31,293 thousand (EUR 2,000    
thousand) to EEK 26,599 thousand (EUR 1,700 thousand) until January 2010 and to 
EEK 21,905 thousand (EUR 1,400 thousand) after that date. Information on the    
maturity of current borrowings is presented in Note 8 to the summarized         
financial statements.                                                           

Tax liabilities and other payables, including payables to employees, amounted to
EEK 45,741 thousand (EUR 2,923 thousand). Provisions amounted to EEK 19,746     
thousand (EUR 1,262 thousand) as of 30 June 2009 and included provisions for the
restructuring of Russian retail operations in the amount of EEK 2,895 thousand  
(EUR 185 thousand).                                                             

Sales from continuing operations                                                

Women's apparel operations were fully divested as of 30 June 2009 after the sale
of PTA in the end of H1 2009 and are no longer part of continuing operations of 
the Group. Continuing operations include production and sales of women lingerie.

Sales by business segments                                                      

--------------------------------------------------------------------------------
|       | 6     | 6      | Change | 6month | 6      | Change | 6      | 6      |
|       | month | months | EEK    | s 2009 | months | EUR    | months | months |
|       | s     | 2008   | thousa | EUR    | 2008   | thousa | 2009   | 2008   |
|       | 2009  | EEK    | nd     | thousa | EUR    | nd     | percen | percen |
|       | EEK   | thousa |        | nd     | thousa |        | tage   | tage   |
|       | thous | nd     |        |        | nd     |        | from   | from   |
|       | and   |        |        |        |        |        | sales  | sales  |
--------------------------------------------------------------------------------
| Linge | 556,4 | 792,11 | -235,6 | 35,564 | 50,625 | -15,06 | 97.8%  | 97.3%  |
| rie   | 55    | 0      | 55     |        |        | 1      |        |        |
--------------------------------------------------------------------------------
| Subco | 12,61 | 22,249 | -9,638 | 806    | 1,422  | -616   | 2.2%   | 2.7%   |
| ntrac | 1     |        |        |        |        |        |        |        |
| ting  |       |        |        |        |        |        |        |        |
| servi |       |        |        |        |        |        |        |        |
| ces   |       |        |        |        |        |        |        |        |
| and   |       |        |        |        |        |        |        |        |
| other |       |        |        |        |        |        |        |        |
| sales |       |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Total | 569,0 | 814,35 | -245,2 | 36,370 | 52,047 | -15,67 | 100.0% | 100.0% |
|       | 66    | 9      | 93     |        |        | 7      |        |        |
--------------------------------------------------------------------------------

Sales by markets                                                                

In H1 2009, the Group focused mainly on the Baltic, Russian, Belarussian and    
Ukrainian markets.                                                              

Total sales by markets                                                          

--------------------------------------------------------------------------------
|       |     6 |      6 | Change |      6 |      6 | Change |      6 |      6 |
|       | month | months |    EEK | months | months |    EUR | months | months |
|       |     s |   2008 | thousa |   2009 |   2008 | thousa |   2009 |   2008 |
|       |  2009 |    EEK |     nd |    EUR |    EUR |     nd | percen | percen |
|       |   EEK | thousa |        | thousa | thousa |        |   tage |   tage |
|       | thous |     nd |        |     nd |     nd |        |   from |   from |
|       |   and |        |        |        |        |        |  sales |  sales |
--------------------------------------------------------------------------------
| Eston | 14,37 | 39,101 | -24,72 | 919    | 2,499  | -1,580 | 2.5%   | 4.8%   |
| ia    | 9     |        | 2      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Finla | 78    | 219    | -141   | 5      | 14     | -9     | 0.0%   | 0.0%   |
| nd    |       |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Latvi | 3,536 | 8,731  | -5,195 | 226    | 558    | -332   | 0.6%   | 1.1%   |
| a     |       |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Belar | 144,7 | 160,78 | -16,06 | 9,249  | 10,276 | -1,027 | 25.4%  | 19.7%  |
| us    | 15    | 4      | 9      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Ukrai | 29,54 | 65,152 | -35,61 | 1,888  | 4,164  | -2,276 | 5.2%   | 8.0%   |
| ne    | 1     |        | 1      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Russi | 334,1 | 466,30 | -132,1 | 21,354 | 29,802 | -8,448 | 58.8%  | 57.3%  |
| a     | 17    | 0      | 83     |        |        |        |        |        |
--------------------------------------------------------------------------------
| Other | 42,70 | 74,072 | -31,37 | 2,729  | 4,734  | -2,005 | 7.5%   | 9.1%   |
| marke | 0     |        | 2      |        |        |        |        |        |
| ts    |       |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Total | 569,0 | 814,35 | -245,2 | 36,370 | 52,047 | -15,67 | 100.0% | 100.0% |
|       | 66    | 9      | 93     |        |        | 7      |        |        |
--------------------------------------------------------------------------------

The majority of lingerie sales revenue in H1 2009 in the amount of EEK 325,997  
thousand (EUR 20,835 thousand) was generated in the Russian market, accounting  
for 58.6% of all lingerie sales in H1 2009 as compared to EEK 440,436 thousand  
(EUR 28,149 thousand) in the respective period in 2008. Sales in Russia comprise
both retail sales and wholesale. The second largest region for lingerie sales   
was Belarus where sales reached EEK 144,715 thousand (EUR 9,249 thousand),      
contributing 26.0% of lingerie sales (both retail and wholesale) as compared to 
EEK 160,784 thousand (EUR 10,276 thousand) in H1 2008.                          

Sales in the major markets, including Russia and Ukraine, although still        
affected by the economic situation and devaluation of the local currencies,     
demonstrated a positive trend compared to the first quarter mainly due to       
undertaking actions supported by seasonal increase in customer demand. As the   
result, sales in Q2 2009 improved significantly as compared to Q1 2009; however,
were still lower as compared to the respective period in prior year. Wholesale  
operations started improving as many of the Group's Russian and Ukrainian       
wholesales partners realized their excess stock levels reducing them to the     
normal operational levels after being overstocked in Q4 2008 after a sharp      
decrease in demand caused by the overall economic crisis.                       

Sales decrease in Belarus is smaller compared to the reduction in sales in      
Russia, Ukraine and the Baltic countries leading to the growing share of the    
Belarussian market in the total sales.                                          

The Group continued conducting business meetings with its trading partners in   
Russia and Ukraine in order to address the slowdown in sales and promote new    
collections. A number of actions have been introduced to the market including   
additional marketing activities in Belarus, Ukraine and Russia and supportive   
measures in the opening of the franchised stores. Dealers and distributors were 
motivated to increase their sales activities in the exchange for favorable      
pricing opportunities.                                                          

A new order processing and reservation system has been introduced by Milavitsa  
in order to allow trading partners a broader access to its stock and speed up   
packing and delivery. As the result Milavitsa had a slight increase over its    
June 2008 sales in terms of units sold.                                         

Changes in the top management of the Group's Russian operations took place in   
June 2009 in order to execute a new sales strategy in that core market and      
improve corporate governance of the Russian subsidiaries of the Group.          

In terms of lingerie brands, the sales of “Milavitsa” core brands accounted for 
75.9% of total lingerie sales revenue in H1 2009 (H1 2008: 76.8%) and amounted  
to EEK 422,348 thousand (EUR 26,993 thousand). The sales of “Lauma” core brand  
accounted for 5.2% of total lingerie sales (H1 2008: 5.8%) and amounted to EEK  
28,931 thousand (EUR 1,849 thousand). Other brands such as “Alisee”, “Aveline”, 
“Hidalgo”, “Laumelle”, “Lauma Aqua” and “Laumelle Aqua” comprised 18.9% of total
lingerie sales in H1 2009 (H1 2008: 17.4%), amounting to EEK 105,176 thousand   
(EUR 6,722 thousand).                                                           

Wholesale                                                                       

In H1 2009, wholesale amounted to EEK 422,958 thousand (EUR 27,032 thousand),   
representing 74.3% of the Group's total revenue (H1 2008: 79.6%). The main      
wholesale regions were Russia, Belarus, Ukraine and the Baltic States.  Gradual 
improvements were observed in Q2 2009 whith an increase in lingerie wholesales  
of 34.0% as compared to Q1 2009 as many of the Milavitsa's Russian and Ukrainian
wholesales partners had adjusted their working capital levels to the new market 
and trading circumstances caused by crisis at the end of 2008. Most of the      
lingerie wholesale partners are located in Russia, a key market for the Group.  

Lauma Lingerie experienced a sharp reduction in sales in their major markets    
being affected by the crisis to a greater extent due to its higher pricing      
positioning and unavailability of the distribution partners to meet the current 
market conditions. Certain changes in the management of the company were made to
address the market realities. Lauma Lingerie is in process of implementation of 
the revised sales strategy in respect to the core markets, including Russia,    
Ukraine and Baltics.                                                            

Retail operations                                                               

Total lingerie retail sales of the Group in H1 2009 amounted to EEK 133,497     
thousand (EUR 8,532 thousand), representing a 7.3% decrease as compared to the  
respective period in 2008.                                                      

Lingerie retail operations were conducted in Latvia, Russia, Belarus, Lithuania 
and Ukraine. At the end of H1 2009 the Group operated 90 retail outlets with a  
total area of 7,487 square meters.                                              

In H1 2009 9 new stores in the lingerie business were opened, including 5 under 
Milavitsa name in Belarus, 1 under Yamamay and 2 under Jockey brand names in    
Lithuania and 1 store under Lauma Lingerie brand name in Latvia. 19             
underperforming stores were closed: 12 PTA stores in Russia, 3 Oblicie stores in
Russia, 1 Milavitsa store in Russia and 2 Milavitsa stores in Belarus, 1 Amadea 
line store in Lithuania. 17 Oblicie stores in Russia were rebranded to Milavitsa
name.                                                                           

Number of stores as at:                                                         
	                                                                               
--------------------------------------------------------------------------------
|                         | 30.06.2009              | 31.12.2008               |
--------------------------------------------------------------------------------
| Latvia                  | 4                       | 3                        |
--------------------------------------------------------------------------------
| Poland                  | 0                       | 7                        |
--------------------------------------------------------------------------------
| Belarus                 | 31                      | 28                       |
--------------------------------------------------------------------------------
| Russia                  | 37                      | 52                       |
--------------------------------------------------------------------------------
| Lithuania               | 18                      | 16                       |
--------------------------------------------------------------------------------
| Total stores            | 90                      | 106                      |
--------------------------------------------------------------------------------
| Total sales area, sq m  | 7,487                   | 9,549                    |
--------------------------------------------------------------------------------

In Belarus, two ineffective stores were closed and 5 new “Milavitsa” stores were
opened, adding to the growth of the retail sales in the country. A number of    
sales promotions were conducted in the Milavitsa retail chain.                  

In the Baltics, lingerie retail sales decreased by 15.4% as compared to H1 2008,
amounting to EEK 11,485 thousand (EUR 734 thousand). The first franchised       
Yamamay shop was opened in Lithuania in cooperation with the Italian partner.   
Altogether, 4 new lingerie shops were opened in the Baltics (3 in Lithuania, and
1 in Latvia).                                                                   

In respect to lingerie retail in Russia, in Q2 2009 the Group's main focus was  
on rebranding of Oblicie stores to Milavitsa stores, closing poor performing    
stores, and improving of sales performance. As a result, 1 lingerie store was   
closed, 17 stores were rebranded. Due to a number of marketing and sales        
activities the Group achieved a like-for-like increase in sales as compared to  
the respective period in 2008. The Group will continue closing inefficient      
stores or relocating them to the better locations; current estimate is that     
approximately 18 shops will be closed or transferred to the trading partners in 
H2 2009. All of the remaining Oblicie stores will be rebranded into Milavitsa   
stores in Q3 2009.                                                              
In the Baltics, the overall consumer market demand continued to deteriorate     
which affected practically all retail segments. Lingerie retail sales sharply   
decreased as compared to Q2 2008. The Group closed one inefficient store in     
Lithuania. Few more stores to be considered for closing in Q3 2009.             

Stores by concept                                                               

--------------------------------------------------------------------------------
| Market     | Milavitsa  | Oblicie    | Other      | Total      | Sales area, |
|            | stores     | stores     | stores     |            | sq m        |
--------------------------------------------------------------------------------
| Russia     | 21         | 15         | 1          | 37         | 3,350       |
--------------------------------------------------------------------------------
| Latvia     | -          | -          | 4          | 4          | 273         |
--------------------------------------------------------------------------------
| Lithuania  | -          | -          | 18         | 18         | 1,009       |
--------------------------------------------------------------------------------
| Belarus    | 31         | -          | -          | 31         | 2,855       |
--------------------------------------------------------------------------------
| Total      | 52         | 15         | 23         | 90         | 7,487       |
--------------------------------------------------------------------------------

Discontinued operations                                                         

Discontinued operations results include operations of PTA for 6 months period   
ended 30 June 2009. Operational results of PTA operations are presented in the  
consolidated income statement as a single line item under ‘Loss from            
discontinued operations'.                                                       

Sales from discontinued operations by markets                                   

--------------------------------------------------------------------------------
|       |     6 |      6 | Change |      6 |      6 | Change |      6 |      6 |
|       | month | months |    EEK | months | months |    EUR | months | months |
|       |     s |   2008 | thousa |   2009 |   2008 | thousa |   2009 |   2008 |
|       |  2009 |    EEK |     nd |    EUR |    EUR |     nd | percen | percen |
|       |   EEK | thousa |        | thousa | thousa |        |   tage |   tage |
|       | thous |     nd |        |     nd |     nd |        |   from |   from |
|       |   and |        |        |        |        |        |  sales |  sales |
--------------------------------------------------------------------------------
| Eston | 37,36 | 37,223 | 141    | 2,388  | 2,379  | 9      | 47.5%  | 37.3%  |
| ia    | 4     |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Finla | 8,308 | 18,776 | -10,46 | 531    | 1,200  | -669   | 10.6%  | 18.7%  |
| nd    |       |        | 8      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Latvi | 12,23 | 14,051 | -1,815 | 782    | 898    | -116   | 15.6%  | 14.0%  |
| a     | 6     |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Ukrai | 10,90 | 9,497  | 1,409  | 697    | 607    | 90     | 13.9%  | 9.5%   |
| ne    | 6     |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Russi | -     | 14,254 | -14,25 | -      | 911    | -911   | 0.0%   | 14.2%  |
| a     |       |        | 4      |        |        |        |        |        |
--------------------------------------------------------------------------------
| Other | 9,779 | 6,353  | 3,426  | 625    | 406    | 219    | 12.4%  | 6.3%   |
| marke |       |        |        |        |        |        |        |        |
| ts    |       |        |        |        |        |        |        |        |
--------------------------------------------------------------------------------
| Total | 78,59 | 100,15 | -21,56 | 5,023  | 6,401  | -1,378 | 100.0% | 100.0% |
|       | 3     | 4      | 1      |        |        |        |        |        |
--------------------------------------------------------------------------------

In H1 2009, women's apparel revenue decreased by 21.5% compared to H1 2008,     
amounting to EEK 78,593 thousand (EUR 5,023 thousand). In the Baltics, revenue  
increased by 3.0%, amounting to EEK 59,379 thousand (EUR 3,795 thousand).       
Revenue in Ukraine increased by 14.8% due to retail expansion, amounting to EEK 
10,906 thousand (EUR 697 thousand). Sales to Finland decreased by 55.8% due to a
decrease in wholesale sales amounting EEK 8,308 thousand (EUR 531 thousand).    

in H1 2009, wholesale of women's apparel decreased by 87.4% amounting to EEK    
3,114 thousand (EUR 199 thousand).                                              

In H1 2009 women's apparel retail revenue increased by 15.9% compared to H1 2008
amounting to EEK 64,558  thousand (EUR 4,126 thousand). Retail sales increased  
in the Baltics and Ukraine and decreased in Russia. Retail sales in the Baltics 
increased by 6.1% and amounted to EEK 31,786 thousand (EUR 2,032 thousand).     
Retail sales in Ukraine increased by 15.0% and amounted to EEK 10,912 thousand  
(EUR 697 thousand). Growth of retail sales in the Baltics and Ukraine was driven
by the increase in the number of stores. The Baltics and Ukraine like-for-like  
apparel retail growth was a positive 1.0% due to the influence of sale          
campaigns.                                                                      

Number of stores (discontinued operations) as of:                               

--------------------------------------------------------------------------------
|                         | 30.06.2009              | 31.12.2008               |
--------------------------------------------------------------------------------
| Estonia                 | 11                      | 11                       |
--------------------------------------------------------------------------------
| Latvia                  | 6                       | 4                        |
--------------------------------------------------------------------------------
| Lithuania               | 6                       | 5                        |
--------------------------------------------------------------------------------
| Ukraine                 | 6                       | 7                        |
--------------------------------------------------------------------------------
| Poland                  | 0                       | 1                        |
--------------------------------------------------------------------------------
| Total stores            | 29                      | 28                       |
--------------------------------------------------------------------------------
| Total sales area, sq m  | 5,464                   | 5,017                    |
--------------------------------------------------------------------------------

At the end of H1 2009 discontinued apparel operations included 29 stores with a 
total sales area of 5,464 square meters. 3 new stores in the apparel business   
were opened, including 2 PTA shops in Latvia and 1 PTA shop in Lithuania.       

Production, sourcing, purchasing and logistics                                  

Due to increased uncertainty in the marketplace and sharply falling demand in Q4
2008 and Q1 2009 the Group's manufacturing companies reduced their production   
and purchasing volumes in H1 2009. In addition, adjustments in the production   
planning process were made to adjust for changing circumstances, For example the
Group's largest production subsidiary SP ZAO Milavitsa switched from quarterly  
production planning to monthly planning. As the result of the adjustments in    
production and sourcing volumes as well as in the production planning process   
the Group was able to decrease inventories to normal levels by 30 June 2009,    
after being overstocked over prior 6 months. Consequently, the Group's working  
capital position was improved significantly and timely deliveries to the        
customers are now secured.                                                      

In respect of sourcing, the number of cooperation partners decreased by 30.8% in
SP ZAO Milavitsa over Q1 2009 and remained at that level. Lauma Lingerie        
decreased the number of its cooperation partners by 25.0% in Q1 2009 and        
continued with a further decrease in Q2 2009. The total volume of production in 
SP ZAO Milavitsa amounted to 6,756 thousand pieces in H1 2009, representing a   
32.4% decrease as compared to the respective period in prior year. The total    
production volumes in Lauma Lingerie amounted to 326 thousand pieces in the 6   
months' period ended 30 June 2009, showing a decrease of 69.3% as compared to   
prior year. In broad terms, available own production capacities in SP ZAO       
Milavitsa remained at the level of 2008, while outsourced production capacities 
with cooperation partners were the major source for the production output       
decrease.                                                                       

In respect of logistics, a new warehouse complex Machuliszhi in Belarus with    
total storage capacity of 1,032 thousand pieces of garments was put into        
operation in Q1 2009. Furthermore, SP ZAO Milavitsa has started to implement a  
supply chain management system on the basis of IFS software application.        

Investment                                                                      

In H1 2009 the Group's investments in continuing operations totalled EEK 20,372 
thousand (EUR 1,302 thousand) with investments into retail amounting to EEK     
12,376 thousand (EUR 791 thousand), including EEK 1,314 thousand (EUR 84        
thousand) in Q2 2009. Other investments were made in equipment and facilities to
maintain effective production.                                                  

Personnel                                                                       

At the end of June 2009, the Group employed 3,231 employees including 544 in    
retail and 2,687 in production. The rest were employed in wholesale,            
administration and support operations. The average number of employees in H1    
2009 was 3,598.                                                                 

The total salaries and wages for H1 2009 amounted to EEK 146,890 thousand (EUR  
9,388 thousand). The remuneration paid to members of the Management Board       
totalled EEK 5,210 thousand (EUR 333 thousand). Four members of the Management  
Board also serve as executives for the Group's subsidiaries.                    


Key Events in H1 2009                                                           

Sale of shares in PTA Grupp AS                                                  

On 30 June 2009 the Group entered into an agreement for the sale of all shares  
in PTA held by the Group (which represented 100% of the share capital of PTA) to
PTA Holding OÜ for a total consideration of EEK 15,224 thousand (EUR 973        
thousand). The transaction was performed immediately upon signing. EEK 7,401    
thousand (EUR 473 thousand) was paid on the date of the closing of the          
transaction by way of taking over certain liabilities of the Group and EEK 7,823
thousand (EUR 500 thousand) will be paid in cash by 31 December 2011 at the     
latest, carrying interest until full payment. The obligation to pay the purchase
price is secured by a share pledge over 100% of all shares in PTA in favour of  
the Group.                                                                      

PTA operates in the field of manufacture, retail and wholesale of women's       
apparel under the „PTA“ trademark. With the sale of the apparel business, the   
Group will focus on its core business - manufacturing and sale of lingerie. The 
sale will enable the Group to reallocate financial and managerial resources to  
its core operations and improve the efficiency of management. Furthermore, in   
the long term the effect on the Group's net profit is expected to be positive,  
as PTA made a net loss of EEK 12,189 thousand (EUR 779 thousand) in 6 months    
period ended 30 June 2009.                                                      

As at the date of disposal PTA had two loans and an overdraft from Danske Bank  
A/S Estonian branch outstanding which are secured by a surety provided by SFG.  
The surety agreement was not terminated after PTA sales transaction and balance 
of loans and credit line amounted to EEK 30,104 thousand (EUR 1,924 thousand) as
of 30 June 2009; however, the liability of the Group to Danske Bank A/S Estonian
branch is in turn secured by a commercial pledge over PTA's assets.             

PTA Holding OÜ is related to Peeter Larin (a member of the management board in  
PTA), who is a member of the management board and a shareholder in PTA Holding  
OÜ. Therefore, the transaction was made with a related party within the meaning 
of the Tallinn Stock Exchange rules. The transaction was not a material         
transaction with a related party within the meaning of the Tallinn Stock        
Exchange rules.                                                                 

Changes in the composition of the Management Board                              

On 29 May 2009, the Supervisory Board of the Group resolved to recall the       
current members of the Management Board Mr. Dmitry Podolinski and Mr. Peeter    
Larin and to appoint Mr. Norberto Rodriguez as the new member of the Management 
Board of the Group. Mr. Rodriguez joined the Group's management team as a Chief 
Logistics Officer in October 2007. His main responsibilities include the        
development and implementation of the corporate strategy in logistics. Currently
Mr. Rodrigues also serves as a Deputy General Director at Milavitsa being       
responsible for logistics, IT, quality management and other business processes. 

Changes in the Management Board form a part of a complex of measures aimed at   
adjusting the Group's organizational structure to the changing market           
conditions.                                                                     

Splendo Polska Sp. z o.o. disposal                                              

The closing of the agreement for the sale of the Company's shares (90% of the   
share capital) in Splendo Polska Sp. z o.o., a Polish retail subsidiary         
operating 6 retail outlets, did not take place during Q2 2009 due to the failure
by the other party to perform its obligations on time, and the agreement was    
transferred to a different purchaser on terms not worse than the original       
agreement. The Company aims to transfer title to the new purchaser within the   
month of August.                                                                

The investment into Splendo Polska Sp. z o.o. is accounted for as the investment
held for sale (fully provided) as of 30 June 2009 and a loss related to the     
transaction was fully provided as of 31 December 2008. Considering the signed   
agreement for the transfer of Splendo Polska Sp. z o.o. shares, the operating   
results of Splendo Polska Sp. z o.o. were not consolidated in the Group's       
financial results and financial position as of 30 June 2009.                    

Selected financial data                                                         

The Group's operating results are best summarised in the following figures and  
ratios:                                                                         

--------------------------------------------------------------------------------
| Key figures and ratios                       | 30.06.20 | 30.06.20 | Change  |
|                                              | 09       | 08       |         |
--------------------------------------------------------------------------------
| Net sales from continuing operations (EEK    | 569,066  | 814,359  | -245,29 |
| thousand)                                    |          |          | 3       |
--------------------------------------------------------------------------------
| Net income from continuing operations,       | -15,772  | 41,369   | -57,141 |
| attributable to shareholders (EEK thousand)  |          |          |         |
--------------------------------------------------------------------------------
| Earnings before interest, taxes and          | 49,286   | 142,948  | -93,662 |
| depreciation (EBITDA) from continuing        |          |          |         |
| operations (EEK thousand)                    |          |          |         |
--------------------------------------------------------------------------------
| Earnings before interest and taxes (EBIT)    | 30,775   | 123,484  | -92,709 |
| from continuing operations (EEK thousand)    |          |          |         |
--------------------------------------------------------------------------------
| Net sales from continuing operations (EUR    | 36,370   | 52,047   | -15,677 |
| thousand)                                    |          |          |         |
--------------------------------------------------------------------------------
| Net income from continuing operations,       | -1,008   | 2,644    | -3,652  |
| attributable to shareholders (EUR thousand)  |          |          |         |
--------------------------------------------------------------------------------
| Earnings before interest, taxes and          | 3,150    | 9,137    | -5,987  |
| depreciation (EBITDA) from continuing        |          |          |         |
| operations ( EUR thousand)                   |          |          |         |
--------------------------------------------------------------------------------
| Earnings before interest and taxes (EBIT)    | 1,967    | 7,892    | -5,925  |
| from continuing operations (EUR thousand)    |          |          |         |
--------------------------------------------------------------------------------
| Operating margin from continuing operations, | 5.4%     | 15.2%    | -       |
| %                                            |          |          |         |
--------------------------------------------------------------------------------
| Net margin from continuing operations, %     | -2.8%    | 5.1%     | -       |
--------------------------------------------------------------------------------
| ROA, %                                       | -5.1%    | 2.9%     | -       |
--------------------------------------------------------------------------------
| ROE, %                                       | -9.1%    | 4.4%     | -       |
--------------------------------------------------------------------------------
| Earnings per share (EPS), in EEK             | -1.31    | 0.80     | -       |
--------------------------------------------------------------------------------
| Earnings per share (EPS), in EUR             | -0.08    | 0.05     | -       |
--------------------------------------------------------------------------------
| Current ratio                                | 2.8      | 3.4      | -       |
--------------------------------------------------------------------------------
| Quick ratio                                  | 1.5      | 1.9      | -       |
--------------------------------------------------------------------------------

Underlying formulas:                                                            

Operating margin from continuing operations = operating profit from continuing  
operations / sales revenue                                                      
Net margin from continuing operations = net profit from continuing operations,  
attributable to equity holders of the parent / sales revenue                    
ROA (return on assets) = net profit attributable to equity holders of the parent
/ average total assets                                                          
ROE (return on equity) = net profit attributable to equity holders of the parent
/ average equity                                                                
EPS (earnings per share) = net profit attributable to equity holders of the     
parent / weighted average number of ordinary shares                             
Current ratio = current assets / current liabilities                            
Quick ratio = (current assets - inventories) / current liabilities              

____________________________                                                    
Dmitry Ditchkovsky                                                              
Chairman of the Management Board                                                

21 August 2009                                                                  

Balance Sheet                                                                   
Consolidated, unaudited                                                         

--------------------------------------------------------------------------------
|               | 30.06.2 | 30.06.2 | 31.12.2 | 30.06.20 | 30.06.20 | 31.12.20 |
|               |     009 |     008 |     008 |       09 |       08 |       08 |
--------------------------------------------------------------------------------
|               |     EEK |     EEK |     EEK |      EUR |      EUR |      EUR |
|               | thousan | thousan | thousan | thousand | thousand | thousand |
|               |       d |       d |       d |          |          |          |
--------------------------------------------------------------------------------
| ASSETS        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Non-current   |         |         |         |          |          |          |
| assets        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Property,     | 199,541 | 268,386 | 293,530 | 12,753   | 17,153   | 18,760   |
| plant and     |         |         |         |          |          |          |
| equipment     |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Intangible    | 6,149   | 26,599  | 16,085  | 393      | 1,700    | 1,028    |
| assets        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Investment    | 19,683  | 21,514  | 23,141  | 1,258    | 1,375    | 1,479    |
| property      |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Investments   | 2,018   | 2,144   | 2,879   | 129      | 137      | 184      |
| in equity     |         |         |         |          |          |          |
| accounted     |         |         |         |          |          |          |
| investees     |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Available-for | 6,744   | 8,027   | 8,716   | 431      | 513      | 557      |
| -sale         |         |         |         |          |          |          |
| financial     |         |         |         |          |          |          |
| assets        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Other long    | 29,369  | 814     | 26,051  | 1,877    | 52       | 1,665    |
| term          |         |         |         |          |          |          |
| receivables   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Total         | 263,504 | 327,484 | 370,402 | 16,841   | 20,930   | 23,673   |
| non-current   |         |         |         |          |          |          |
| assets        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Current       |         |         |         |          |          |          |
| assets        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Inventories   | 274,222 | 369,072 | 434,412 | 17,526   | 23,588   | 27,764   |
--------------------------------------------------------------------------------
| Prepaid taxes | 17,446  | 29,431  | 62,070  | 1,115    | 1,881    | 3,967    |
--------------------------------------------------------------------------------
| Trade         | 168,498 | 206,911 | 168,013 | 10,769   | 13,224   | 10,738   |
| receivables   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Other         | 31,700  | 44,484  | 42,277  | 2,026    | 2,843    | 2,702    |
| receivables   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Prepayments   | 13,268  | 48,645  | 49,209  | 848      | 3,109    | 3,145    |
--------------------------------------------------------------------------------
| Cash and cash | 63,776  | 140,319 | 82,129  | 4,076    | 8,968    | 5,249    |
| equivalents   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Total current | 568,910 | 838,862 | 838,110 | 36,360   | 53,613   | 53,565   |
| assets        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| TOTAL ASSETS  | 832,414 | 1,166,3 | 1,208,5 | 53,201   | 74,543   | 77,238   |
|               |         | 46      | 12      |          |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES   |         |         |         |          |          |          |
| AND EQUITY    |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Equity        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Share capital | 400,000 | 400,000 | 400,000 | 25,565   | 25,565   | 25,565   |
| at par value  |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Share premium | 223,293 | 223,293 | 223,293 | 14,271   | 14,271   | 14,271   |
--------------------------------------------------------------------------------
| Own shares    | -7,041  | 0       | -7,041  | -450     | 0        | -450     |
--------------------------------------------------------------------------------
| Statutory     | 1,046   | 1,046   | 1,046   | 67       | 67       | 67       |
| capital       |         |         |         |          |          |          |
| reserve       |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Translation   | -168,82 | -99,157 | -58,086 | -10,790  | -6,338   | -3,713   |
| reserve       | 7       |         |         |          |          |          |
--------------------------------------------------------------------------------
| Retained      | 45,907  | 218,065 | 82,035  | 2,934    | 13,937   | 5,243    |
| earnings      |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Total equity  | 494,378 | 743,247 | 641,247 | 31,597   | 47,502   | 40,983   |
| attributable  |         |         |         |          |          |          |
| to equity     |         |         |         |          |          |          |
| holders of    |         |         |         |          |          |          |
| the parent    |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Minority      | 127,833 | 165,025 | 141,977 | 8,170    | 10,547   | 9,074    |
| interest      |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Total equity  | 622,211 | 908,272 | 783,224 | 39,767   | 58,049   | 50,057   |
--------------------------------------------------------------------------------
| Non-current   |         |         |         |          |          |          |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Loans and     | 7,260   | 9,529   | 18,197  | 464      | 609      | 1,163    |
| borrowings    |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Deferred tax  | 266     | 203     | 201     | 17       | 13       | 13       |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Other         | 0       | 188     | 1,314   | 0        | 12       | 84       |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Provisions    | 0       | 125     | 125     | 0        | 8        | 8        |
--------------------------------------------------------------------------------
| Total         | 7,526   | 10,045  | 19,837  | 481      | 642      | 1,268    |
| non-current   |         |         |         |          |          |          |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Current       |         |         |         |          |          |          |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Loans and     | 40,650  | 63,087  | 116,254 | 2,598    | 4,032    | 7,430    |
| borrowings    |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Trade         | 96,806  | 110,747 | 167,951 | 6,187    | 7,078    | 10,734   |
| payables      |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Corporate     | 6,446   | 8,308   | 4,006   | 412      | 531      | 256      |
| income tax    |         |         |         |          |          |          |
| liability     |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Other tax     | 22,390  | 15,881  | 18,150  | 1,431    | 1,015    | 1,160    |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Deferred tax  | 16      | 0       | 0       | 1        | 0        | 0        |
| liability     |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Other         | 16,163  | 24,111  | 27,584  | 1,033    | 1,541    | 1,763    |
| payables      |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Provisions    | 19,746  | 25,864  | 70,817  | 1,262    | 1,653    | 4,526    |
--------------------------------------------------------------------------------
| Accrued       | 38      | 31      | 689     | 2        | 2        | 44       |
| expenses      |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Deferred      | 422     | 0       | 0       | 27       | 0        | 0        |
| income        |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Total current | 202,677 | 248,029 | 405,451 | 12,953   | 15,852   | 25,913   |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| Total         | 210,203 | 258,074 | 425,288 | 13,434   | 16,494   | 27,181   |
| liabilities   |         |         |         |          |          |          |
--------------------------------------------------------------------------------
| TOTAL         | 832,414 | 1,166,3 | 1,208,5 | 53,201   | 74,543   | 77,238   |
| LIABILITIES   |         | 46      | 12      |          |          |          |
| AND EQUITY    |         |         |         |          |          |          |
--------------------------------------------------------------------------------
                                                                                

Income Statement - H1                                                           
Consolidated, unaudited                                                         

--------------------------------------------------------------------------------
|                            |    2009 |      2008 |         2009 |       2008 |
|                            |      H1 |        H1 |           H1 |         H1 |
|                            |     EEK |       EEK |          EUR |        EUR |
|                            | thousan |  thousand |     thousand |   thousand |
|                            |       d | (restated |              | (restated) |
|                            |         |         ) |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations      |         |           |              |            |
--------------------------------------------------------------------------------
| Net sales                  | 569,066 | 814,359   | 36,370       | 52,047     |
--------------------------------------------------------------------------------
| Costs of goods sold        | -314,95 | -458,946  | -20,129      | -29,332    |
|                            | 0       |           |              |            |
--------------------------------------------------------------------------------
| Gross Profit               | 254,116 | 355,413   | 16,241       | 22,715     |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income     | 17,289  | 9,920     | 1,105        | 634        |
--------------------------------------------------------------------------------
| Distribution costs         | -92,722 | -116,364  | -5,926       | -7,437     |
--------------------------------------------------------------------------------
| Administrative expenses    | -80,033 | -92,205   | -5,115       | -5,893     |
--------------------------------------------------------------------------------
| Other operating expenses   | -67,875 | -33,280   | -4,338       | -2,127     |
--------------------------------------------------------------------------------
| Operating profit           | 30,775  | 123,484   | 1,967        | 7,892      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest expenses          | -6,008  | -642      | -384         | -41        |
--------------------------------------------------------------------------------
| Gains/losses on conversion | 11,954  | -1,408    | 764          | -90        |
| of foreign currencies      |         |           |              |            |
--------------------------------------------------------------------------------
| Other financial income /   | 6,572   | 5,257     | 420          | 336        |
| expenses                   |         |           |              |            |
--------------------------------------------------------------------------------
| Total financial income /   | 12,518  | 3,207     | 800          | 205        |
| expenses                   |         |           |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of profit of equity  | -422    | 1,330     | -27          | 85         |
| accounted investees        |         |           |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before corporate    | 42,871  | 128,021   | 2,740        | 8,182      |
| income tax                 |         |           |              |            |
--------------------------------------------------------------------------------
| Corporate income tax       | -45,703 | -56,625   | -2,921       | -3,619     |
--------------------------------------------------------------------------------
| Profit from continuing     | -2,832  | 71,396    | -181         | 4,563      |
| operations                 |         |           |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations    |         |           |              |            |
--------------------------------------------------------------------------------
| Profit / (loss) of         | -36,034 | -9,231    | -2,303       | -590       |
| discontinued operation     |         |           |              |            |
| (net of income tax)        |         |           |              |            |
--------------------------------------------------------------------------------
| Profit for the period      | -38,866 | 62,165    | -2,484       | 3,973      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit attributable to | -51,806 | 32,138    | -3,311       | 2,054      |
| parent company             |         |           |              |            |
--------------------------------------------------------------------------------
| Net profit attributable to | 12,940  | 30,027    | 827          | 1,919      |
| minority shareholders      |         |           |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share         |         |           |              |            |
--------------------------------------------------------------------------------
| Basic earnings per share   | -1.31   | 0.08      | -0.08        | 0.05       |
| (EEK/EUR)                  |         |           |              |            |
--------------------------------------------------------------------------------
| Diluted earnings per share | -1.31   | 0.08      | -0.08        | 0.05       |
| (EEK/EUR)                  |         |           |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations      |         |           |              |            |
--------------------------------------------------------------------------------
| Basic earnings per share   | -0.40   | 1.03      | -0.03        | 0.07       |
| (EEK/EUR)                  |         |           |              |            |
--------------------------------------------------------------------------------
| Diluted earnings per share | -0.40   | 1.03      | -0.03        | 0.07       |
| (EEK/EUR)                  |         |           |              |            |
--------------------------------------------------------------------------------


Statement of comprehensive income - H1                                          
Consolidated, unaudited                                                         

--------------------------------------------------------------------------------
|                                      | 2009   | 2008    | 2009    | 2008     |
|                                      | H1     | H1      | H1      | H1       |
|                                      | EEK    | EEK     | EUR     | EUR      |
|                                      | thousa | thousan | thousan | thousand |
|                                      | n      | d       | d       |          |
--------------------------------------------------------------------------------
| Profit for the period                | -38,86 | 62,165  | -2,484  | 3,973    |
|                                      | 6      |         |         |          |
--------------------------------------------------------------------------------
| Other comprehensive income           |        |         |         |          |
--------------------------------------------------------------------------------
| Foreign currency translation         | -137,7 | -29,515 | -8,801  | -1,887   |
| differences for foreign operations   | 05     |         |         |          |
--------------------------------------------------------------------------------
| Disposal of subsidiary               | 16,820 | 0       | 1,075   | 0        |
--------------------------------------------------------------------------------
| Other comprehensive income for the   | -120,8 | -29,515 | -7,726  | -1,887   |
| period                               | 85     |         |         |          |
--------------------------------------------------------------------------------
| Total comprehensive income           | -159,7 | 32,650  | -10,210 | 2,086    |
|                                      | 51     |         |         |          |
--------------------------------------------------------------------------------
| Comprehensive income attributable to | -146,8 | 9,493   | -9,386  | 606      |
| parent company                       | 59     |         |         |          |
--------------------------------------------------------------------------------
| Comprehensive income attributable to | -12,89 | 23,157  | -824    | 1,480    |
| minority shareholders                | 2      |         |         |          |
--------------------------------------------------------------------------------