Moscow, Russia — September 30, 2003 — Wimm-Bill-Dann Foods OJSC [NYSE: WBD] today announced the acquisition of an additional 47.7 % of the equity capital of Ufamolagroprom OJSC (Ufa, the Republic of Bashkortostan), increasing its total shareholding to 97.82 %. The transaction was worth about US$3.15 million.
Founded in 1971, Ufamolagroprom OJSC is the largest manufacturing facility for milk processing and dairy production in the Republic of Bashkortostan. The plant became part of Wimm-Bill-Dann in March 2001.
The plant was originally designed with a capacity of 240 tons of processed milk per day. Current capacity stands at 600 tons. Ufamolagroprom has approximately 1,500 employees.
Today, Ufamolagroprom OJSC produces more than 140 high-quality products. The plant manufactures milk, butter, kefir, sour cream, curds, glazed curds and yogurt along with the traditional dairy products of Bashkortostan. The plant’s produce is sold under well-known Russian brands such as «Little House in the Country», «Happy Milkman», «Zavetni Bidonchik», «Wonder», «Ginger Up», «Frugurt», «Bio-Max» and «Doctor Bifi».
Ufamolagroprom operates the most advanced manufacturing facility for cheese and cheese spreads in Russia. In August 2003, the plant launched production of cheese spreads under «Cheesemaker Orlova» brand. The brand’s unique taste and attractive packaging give it a strong competitive edge, and it is expected that this brand will be soon rolled out throughout Russia.
As part of an ongoing modernization programme, more than US$700,000 was provided for building, acquiring and refurbishing premises and equipment at Ufamolagroprom over the past year.
Wimm-Bill-Dann Foods OJSC
16 Yauzsky Boulevard, Moscow, Russia
Phone: +7 095 733-97-26/9727
Fax: +7 095 733-97-25
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 Wimm-Bill-Dann, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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 conform them to actual results. We refer you to the documents Wimm-Bill-Dann files from time to time with the U.S. Securities and Exchange Commission, including our Form F-1. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” in our Form F-1, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, potential fluctuations in quarterly results, our competitive environment, acquisition strategy, risks associated with operating in Russia, volatility of stock price, financial risk management, and future growth subject to risks.