AS Baltika started the process of strengthening the company´s financial        

position.                                                                    
  
On 04 March 2010, OÜ Baltika TP, the subsidiary of AS Baltika, concluded an
    
agreement for the sale of real estate, located in Ahtme (Estonia), where
Baltika
Group factory is located. According to the agreement, Baltika TP is
obligated to
rent the premises for the next five years.                       
              

The transaction price is 16.0 million kroons (1.0 million
euros).               

The transaction is not regarded as a transaction with
related parties within the
meaning of the regulations of the Tallinn Stock
Exchange.                       


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