Shareholders give go ahead for Baltika merger

09/03/06 Baltika Breweries, the leading brewer in Russia and Eastern Europe has announced that its shareholders have voted in favour of the proposed merger of Baltika with brewing companies Pikra, Vena and Yarpivo. An overwhelming majority of Baltika shareholders voiced their approval for the deal at the March 7 extraordinary general shareholders meeting. When completed, the merger will reinforce Baltika’s position as Russia’s number one brewer, and double the number of its breweries from 5 to 10.

Baltika Breweries President Anton Artemiev commented: “I am absolutely delighted that Baltika shareholders have voted in favour of the merger with Pikra, Vena and Yarpivo. Baltika is a highly successful, world-class company that Russia can be proud of. This merger enables us to strengthen our position as the leader in the highly competitive domestic market and gives us an extended platform for international expansion.”

In accordance with Russian legislation, only non-affiliated minority shareholders of Baltika were eligible to vote on the merger resolutions on the agenda of the EGSM. A very substantial majority of the eligible shareholders supported the merger, with the four merger related IPT (Interested Party Transaction) resolutions being supported by the holders of over 8.41 million shares, representing over 98 percent of shares voted and 88 percent of all shares eligible to vote on the resolutions.

With this first and critical milestone of gaining Baltika shareholder support now successfully passed, Baltika will proceed according to the proposals announced on January 18, 2006. Shareholders in Pikra, Vena and Yarpivo will be offered the option of exchanging their shares into Baltika ordinary shares or selling them to Baltika, if they wish to do so. Baltika ordinary shareholders will have the opportunity to either sell their shares back to the company or retain their shareholding in the enlarged company.