The Board of Directors of JSC Concern “Kalina” elected as independent director Johan Gritsen HendrikVreeman.

Johan Gritsen HendrikVreeman was boned on 20 November of year 1945, he finished University in Amsterdam and Wharton Business School in Philadelphia. He was a director of different companies both in Russia and in Netherlands, a deputy-director of Rabo Black Earth B.V., he manages Corpeq B.V. now.

Since 2000 Johan Gritsen HendrikVreeman is a member of the Board of Directors of JSC Concern “Kalina” and since July 2003 is an independent director in the Board of Directors of JSC Concern “Kalina”

About Concern Kalina

JSC Concern “Kalina” is one of the leaders in the Russian perfumery and cosmetics market. Its leading brands are “Black Pearl”, “Clean Line” and “MIA” in skin care, “32” and “Forest Balsam” in oral care, and “Anzhelika Varoom” in perfumery.

The Company has its head office and plant in Ekaterinburg, a plant in Omsk, and a number of subsidiaries – “Pallada Vostok” (Uzbekistan), “Torzhok”, “Pallada-Ukraine” (Ukraine), “Novoplast” (Ekaterinburg), JSC “Lola atip Upa” (Uzbekistan), and “Kalina Overseas Holding B.V.” (Netherlands).

For additional information please contact Sergei Kazantsev, Press Secretary, at + (7 3432) 658 306; e-mail: pressa@kalina.org.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of JSC Concern “Kalina” (the “Company”), as defined in the safe harbour provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as “expect”, “believe”, “anticipate”, “estimate”, “intend”, “will”, “could”, “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date of this press release and to reflect the occurrence of unanticipated events. We refer you to the documents the Company files from time to time with the Federal Service for the Financial Markets, including the Company’s Prospectus filed October 21, 2003. These document contain and identify important factors, including those contained in the section captioned “Risk Factors” in the Prospectus, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, our competitive environment, dependence on new product development, rapid market change, acquisition strategy, risks associated with operating in Russia, volatility of stock price, financial risk management, and future growth subject to risks.