Sale of property

8/2/2012 3:00 AM EST

Baltika
Company Announcement 

Sale of property

On 31 July in line with the plans to exit operating real estate and focus on
the core business AS Baltika subsidiary OÜ Baltika TP has signed sales
agreement with AS Kawe Group to divest Veerenni 24 (office buildings and land).
Baltika Group will continue to rent the space for its head office and Moetänav
store  space at the site. 

The transaction amounts to 13.6 million euros from which 13 million euros was
settled at the time of signing the agreement and 0.6 million euros will be paid
in equal instalments over the next 5 years. 

AS Baltika used the funds to make early repayment of a loan from AS Swedbank
and as a result loan liabilities decreased by 13 million euros.  As a result of
the transaction Baltika investment property and non-current assets held for
sale in the amount of 13.6 million euros decreased in full. Short and long term
receivables increased by a total of 0.6 million euros. The sale price is equal
to the book value of the asset and as such the sale transaction has no
significant impact for in the income statement. 

Maigi Pärnik
Member of the Management Board