Moscow, Russia — December 1, 2003 — Wimm-Bill-Dann Foods OJSC [NYSE: WBD] today announced its financial results for the nine months ended September 30, 2003.

During the first nine months of 2003, Wimm-Bill-Dann’s sales increased 15.6% compared to the same period of prior year. Gross margins declined slightly to 30.4% in the first nine months of 2003 from 30.8% during the same period last year. Net income and EBITDA fell 36% and 4.7%, respectively, compared to the same period prior year.

Commenting on today’s announcement, Sergei Plastinin, CEO of Wimm-Bill-Dann Foods OJSC, said: «We believe that, with our in-depth knowledge of the Russian market, and a skilled management team, we will continue to grow our business successfully, despite increasing competition and growing costs. In the Dairy Segment we are concentrating on productivity increases and on launching more value added products, especially in the regions, while our efforts in the Juice Segment are focused on introducing innovative products and strengthening our distribution system. Our key goal looking ahead is to improve our bottom-line while reducing operational expenses in the near future.»

Key Operating and Financial Indicators of 9m 2003

Wimm-Bill-Dann’s sales reached US$684.6 million in the first nine months of 2003, compared to US$592.4 million in the same period of 2002.

Sales in the Dairy Segment increased 17.9% from US$406.6 million in the first nine months of 2002 to US$479.5 million in the first nine months of 2003, while the average selling price increased by 12.1% from US$0.58 per 1 kg in the first nine months 2002 to US$0.65 per 1 kg in the first nine months of 2003. This increase was primarily due to the higher share of value added products in the sales mix. Gross margins in the Dairy Segment decreased from 30.1% in the first nine months of 2002 to 29.1% in the first nine months of 2003. This was attributable to increased depreciation and a year-on-year increase in the price of raw milk, a trend which we expect to continue into and beyond next year.

Sales in Wimm-Bill-Dann’s Juice Segment increased 9.7% from US$185.7 million in the first nine months of 2002 to US$203.8 million in the first nine months of 2003. The average selling price slightly increased from US$0.56 per liter in the first nine months of 2002 to US$0.57 per liter in the first nine months of 2003. This resulted in an increase in the juice gross margins from 32.6% in the first nine months of 2002 to 33.8% in the first nine months of 2003.

Selling and distribution expenses increased in the first nine months of 2003 in both absolute terms, rising 34.3%, and as a percentage of sales. This was due to an increase in personnel, advertising and marketing costs as well as other commercial expenses. In addition, we recorded a US$8 million provision for bad debts. General and administrative expenses, including personnel, rent, insurance and audit, legal and consulting fees increased 27.9% as a result of Wimm-Bill-Dann’s expansion and launch of various initiatives aimed at restructuring and improving our performance.

Net income fell 36.0% and stood at US$20.8 million. EBITDA in the first nine months of 2003 decreased year-on-year and amounted to US$69.0 million. EBITDA margin was 10.1% compared to 12.2% in the first nine months of 2002.

Due to lower than anticipated sales volumes in both segments and higher raw milk prices in the dairy segment, we expect a loss in the 4th quarter, which will result in net income for the year being below the currently reported net income for the 9 months of 2003.

Reconciliation of EBITDA and EBITDA margin to US GAAP Net Income and Net Income margin

EBITDA is a non-U.S. GAAP financial measure, which represents net income before interest expense, income taxes, depreciation and amortisation adjusted for minority interest and should not be considered in isolation as an alternative to net income, operating income or any other measure of performance under U. S. GAAP. Further, EBITDA as presented above may not be comparable to similarly titled measures reported by other companies. We believe that EBITDA, which is a commonly used financial indicator of a company’s operating performance and debt servicing ability, is a relevant measurement to assess performance which attempts to eliminate variances caused by the effects of differences in taxation, the amount and types of capital employed and depreciation and amortisation policies. EBITDA margin is EBITDA expressed as a percentage of sales. Reconciliation of EBITDA and EBITDA margin to net income and net income as percentage of sales, the most directly comparable U. S. GAAP financial measures, is presented in the table above.

WIMM-BILL-DANN FOODS OJSC ANNOUNCES 9 MONTHS 2003 FINANCIAL RESULTS
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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.