ST.PETERSBURG, 14 November 2005  . The main results of Company performance for the first  9 months of 2005, reported in accordance with International Financial Reporting Standards (IFRS), are as follows:

 - Sales by volume:   17.81 million hectoliters,  + 16.9%

 - Net sales:  757.7 million EURO, +22.1%

 - Gross profit: 394.5 million EURO, + 34.8%

 - EBITDA: 238.8 million EURO, +37.3%

 - Operating profit (EBIT): 187.6 million EURO, +44.1%

COMPANY GROWTH CONTINUES TO RUN AHEAD OF THE MARKET

For the first 9 months of 2005, the Company.s sales growth was 16.9%, while the general market grew by just 4.8%. In the 3rd quarter, growth decelerated, but notwithstanding the high performance achieved in the same period in 2004, it remained on a high level (+9.7%), so that for five straight quarters it has run ahead of the growth in the market. During the 3rd quarter of 2005 sales volume was 6,995,000 hectoliters.

The Company.s net sales in monetary terms for the first 9 months of 2005 grew by 22.1% and amounted to 757.7 million Euro. The growth was a result of the combined effect of sales volume growth and an increase in the average price of products.

Baltika Breweries. market share in Q3 2005 grew to 24.8%, while the Company.s market share over the first 9 months as a whole were 24.4%. Thus Baltika Breweries. practically holds a quarter of the Russian beer market and is significantly ahead of its nearest competitors.

BRANDS

Over the course of 9 months, the Company has continued to grow market share in the mainstream, premium and lower mainstream segments of the market, while successfully promoting its regional brands.

Baltika Breweries owns the two most successful Russian brands . Baltika and Arsenalnoye. The Baltika brand has long occupied the leadership position on the Russian market, and Arsenalnoye has persistently strengthened its position as the Russian ?2 brand in 2005. This achievement was facilitated by the implementation of effective marketing communications and restyling of the brand which leads in the lower mainstream segment, with a market share of 20%. In the autumn of 2005, a new beer variety called Arsenalnoye Zakalennoye was launched: this is the first variety with pepper flavoring in the history of Russian beer brewing. This new creation using Chili peppers has become an original addition to the Arsenalnoye brand assortment, which continues to grow market share in Russia and reached 5.4% at the end of the 3rd quarter.

In 2005 the Company continued to develop and roll out new marketing initiatives which have strengthened the positions of all the main brands. The packaging of Baltika ?7 was restyled and reinvigorated and advertising campaigns were carried out, all of which led to a growth of 30% in sales of the brand. This further consolidated the Company.s leadership position in the premium segment of the Russian market, with a 17% share. The introduction of transparent glass packaging, which is very much in demand, to renew the premium variety Baltika ?5 contributed to a 46.7% growth in sales.  By the autumn of 2005, the Company completed the reshaping of its line-up of premium brands, while at the same time strengthening its position in the segment to 30.4%.

The most promising market segment continues to be licensed beer, which now has a market share in excess of 7% by physical volume. In keeping with this, the Company has been developing sales of its licensed brands, increasing its share in this segment to 8%. This has been assisted by an active promotion of Fosters, using a creative advertising campaign on TV, outdoor advertising, and on the Internet.

In the 3rd quarter there were changes made in the portfolio of regional brands. The regional brand Don was added to the actively developing brand DV (+65% growth for the first 9 months and +15.6% in the 3rd quarter).  After a successful restyling of the brand, it grew by 21.7%.

The effectiveness of marketing communications has been remarked by the professional community. The brands Arsenalnoye and Don were winners of prestigious BRAND OF THE YEAR/EFFIE 2005 awards. The Company also received recognition at the very prestigious beer sector competition Brewing Industry International Awards. In 2005 the silver medal at this competition for dark beer was awarded to Baltika ?6 Porter (in 2004 the bronze medal of this competition was awarded to Baltika ?8 Wheat beer.

EXPORT

The  Company  continues  its  successful  development of export sales and remains  the  largest  exporter of Russian beer. Baltika products account for  80%  of  all  deliveries  of Russian beer abroad. During the first 9 months  of  2005,  the  volume  of  export  sales amounted to 1.1 million hectoliters,  which  is  16%  higher  than  in the same period last year. Baltika  beer  is sold  in 38 countries around the world. In 2005 direct deliveries  began  to Ireland and Norway. The largest sales volumes go to neighboring  countries  of the Baltic region and the USA. Growth in sales in  CIS over  the first 9 months amounted to +15%, in the USA +26%  Baltic countries more then twice (+ 136%). Deliveries to China have been developing quickly. The first shipments to the Chinese market were begun a year ago and today the Company holds more than 1% of the market in imported beer.

The  largest  growth in export sales  has occurred in the neighboring countries of Kazakhstan, Moldova, Turkmenistan and Tadjikistan. According to the  AC  Nielsen, Baltika beer occupies more than 17 % of the beer market in Kazakhstan, with sales growth of +20% during the first 9 months of 2005.

In recognition of its development of export and contribution to the expansion  of the Russian Federation.s foreign economic ties, the Company has  received  an  Honorary  Diploma  as "Best Russian Exporter" for four years in a row.

PRICES/PACKAGING

The average growth in prices for beer during the first 9 months of 2005 was 7.1% compared to the same period a year earlier. This growth was made possible by the restyling of products and the development of the portfolio of brands.

The Company continues to increase its share in the key market segments . premium, mainstream and lower mainstream. The growth in production of the lower mainstream segment (with Arsenalnoye as the leading brand) led to greater use of PET packaging. Development of the PET format is a persistent tendency in the market and goes together with an invariable growth of its share in beer consumption over recent years.

FINANCIAL RESULTS

During the first 9 months of 2005 the Company demonstrated high financial performance.

All of the Company.s efforts to improve products and to develop sales and distribution have brought about this impressive growth in revenues.

In addition to sales growth and increased average prices during the accounting period, the Company also managed to reduce production costs per unit and the cost of raw ingredients and materials per unit by 5.3%. The results for the first 9 months of 2005 indicate that the Company has reached the best level of gross margins in its history.

Growth in operating profit was promoted by strict control over administrative costs, reining in their rise and leading to a reduction in administrative costs per unit over the first 9 months of 2005 by 6.4%.

The positive effect of savings in these categories was somewhat reduced by an increase in expenses relating to delivery and maintenance of the Company.s sales network. Expenses on distribution and delivery during the accounting period grew by 12.5% compared with the same period in 2004. The main factor in this growth was rising tariffs of the natural monopolies.

The Company is confident it can maintain its high level of financial performance as demonstrated in the key indicators through the end of 2005 notwithstanding the impact on development of sales volumes from the high companies of Q4 2004 and of the measures taken to develop distribution, seen as necessary for the successful promotion of a unified portfolio of Company brands.

THE INTEGRATION PROJECT

Baltika Breweries is continuing to expand the exchange of experience and close operational collaboration between the Russian plants of BBH in order to enjoy as much as possible the benefits of scale across the entire territory of Russia.

Together with the operational program, steps have been taken towards integration of legal entities. In September 2005, the Board of Directors of Baltika Breweries proposed new principles for the integration of the companies, which presuppose that all the Russian enterprises of the BBH Group will be merged at the same time. Following that, work began to set a value on these companies. The valuations will be used to put together a detailed plan and will be sent to the shareholders for review. If the proposal is approved by shareholders, then the unified Baltika Breweries will become even stronger and more efficient.

PROSPECTS FOR THE FUTURE

Baltika Breweries President Anton Artemiev has commented on the Company.s financial and operating results as follows:

 «Over the course of nearly 10 years, Baltika Breweries has been the leader on the Russian market.  Now by our common efforts we can turn Baltika Breweries into the largest and most professional enterprise producing consumer goods in Russia. The proposed integration is an important step in reaching this objective. 

We now have a splendid opportunity to create a unified business which owns an unsurpassed portfolio of brands and geographic reach, as well as world-class production and distribution»

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Baltika Breweries has been the leader on the Russian beer market since 1996. The Company owns the two top brands in Russia . Baltika and ?rsenalnoye. The Company consists of 5 plants situated in St Petersburg, Rostov-on-Don, Tula, Samara, and Khabarovsk; a malt plant in Tula; and  31 sales subdivisions. Product is exported to 38 countries of the CIS and the world at large.

Since 1993 the largest shareholder in Baltika Breweries is ?altic Beverages Holding AB (??H).  BBH is a company which is owned in equal parts  by Carlsberg A/S and Scottish & Newcastle plc.

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 The Company's Key Financial Results for the 9 months of 2005

(According to the Company.s financial reports prepared under IFRS)

The results for 2004 which are used for comparison have been corrected with a view to changes resulting from the shift over to International Financial Reporting Standards (IFRS).