Market announcement

Title

BLT: Baltika signed a loan portfolio restructuring agreement with banks

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Baltika                     Company Announcement                      02.12.2010

Baltika signed a loan portfolio restructuring agreement with banks

As the last step in strengthening its financial position, Baltika Group has     
signed debt refinancing agreements of 17.1 million euros in aggregate and       
guarantee facility agreements of 2.9 million euros in aggregate with AS Swedbank
and Nordea Bank Finland Plc Estonian Branch. The agreements concluded in        
November this year will mature on 31 December 2014. The transactions involved   
consolidating a number of different loans, both short- and long-term ones, and  
aligning the settlement schedules with the Group's real cash flow capabilities  
in the next few years. As a result of refinancing, the Group's current to       
non-current loans ratio is approximately 5%/95% in place of the former 40%/60%. 

Management believes that successful implementation of the financial             
reinforcement package will ensure the Group with a sustainable financial        
position for exiting the economic crisis and achieving its strategic objectives 
until the end of 2014.                                                          



Ülle Järv                                                                       
CFO, Member of the Management Board                                             
+372 630 2731