The largest Russian brewery Baltika, which is a subsidiary of Baltic
Beverages Holding AB (BBH), is building a new brewery in Habarovsk in
Eastern Siberia.

The capacity of the new brewery will be 1m hl, and the brewery is scheduled to start brewing beer in the summer of 2003. The investment is expected to be around US$50m.

The new brewery will further strengthen BBH's market position in
Eastern Russia. At the same time it will result in lower distribution costs of Baltika beer, which is the biggest beer brand in Russia.

Today, Baltika beer is brewed at breweries in the Western and Southern part of Russia.

BBH's market share is approximately 33% and the prerequisite for an increase in growth is extension of the capacity, partly by building new breweries and partly by increasing the capacity of existing breweries.

The new brewery in Habarovsk is the third new brewery BBH has decided to build this year.

The population of the Habarovsk-region is approximately 10m.