Baltika
Liquidation of the Czech subsidiary
Baltika / Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- In 2007 AS Baltika established the subsidiary Baltika Retail Czech Republic s.r.o. for operating in the Czech market. To date, two stores have been opened and the introduction of the Monton brand to the Czech consumers has proceeded according to plan. As anticipated, throughout the start-up period the subsidiary has been generating a loss. The global economic crisis that emerged at the end of 2008 has lessened the parent company's ability to continue supporting the loss-generating subsidiary and, regrettably, negotiations with the local shopping malls with a view to lowering the entity's operating costs did not yield expected results. Accordingly, on 13 August AS Baltika started the liquidation of Baltika Retail Czech Republic s.r.o., a process that is expected to last 6 months. According to management's estimates, non-recurring liquidation expenses may amount to up to 10 million kroons ( 0,6 million euros). At the same time, the discontinuance of the Czech operations is expected to improve AS Baltika's financial performance in 2010 by around 15 million kroons ( 0.9 million euros). Ülle Järv CFO, Member of the Management Board +372 630 2731 News Source: NASDAQ OMX 14.08.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Baltika Estonia Phone: Fax: E-mail: Internet: ISIN: EE3100003609 WKN: End of News DGAP News-Service ---------------------------------------------------------------------------
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