Moscow, July 03, 2003. Wimm-Bill-Dann Foods OJSC (NYSE: WBD) today announced it has invested more than US$31.7 million in its dairy business. New production lines were installed at two facilities in Central and Southern Russia as part of the current phase of an all-round modernization programme, aimed at improving operating efficiencies and ensuring that Wimm-Bill-Dann products continue to meet the highest quality standards.

At the Lianozovo Dairy Plant OJSC, two new production lines, made by ACMA GD (Italy), for sour milk products packaged in plastic bottles, were installed. The overall investment in the current modernization of the Lianozovo Dairy Plant amounted to US$12 million.

The new production lines will give products a longer shelf life, and have a capacity of 200,000 bottles or between 90 and 180 tons per day. The new lines will be used to produce enriched drinkable yoghurt under the brands Bio Max and Neo, Wimm-Bill-Dann’s new brand, in 0.9 litre and 0.45 litre containers, as well as traditional dairy products under the Domik v Derevne and Milaya Mila trademarks.

At the Timashevsky Dairy Plant OJSC, one of the largest in Southern Russia, the company has completed the reconstruction of its low-fat foods production facility and launched a production line for soft curds. It is currently in the process of launching a new production line for yoghurts with a capacity of 100 tons per day. The overall investment in the Timashevsky Dairy Plant amounted to US$ 19.7 million.

A TR-7/ESL dispenser by Tetra Pak with a capacity of 6,000 one-litre containers per hour was also launched at the Timashevsky Dairy Plant. The overall modernization and re-equipment of the production facility will add additional capacity to manufacture low-fat products under the Domik v Derevne, Kubanskaya burenka, Doctor Bifi and Frugurt brands at the volume of 150 tons per day.

In addition, a production line for soft curds, produced by GEA Westfalia Separator (Germany), and ILLIG dispensers, produced by Ulrich Reisacher (Germany), with the capacity to produce 30 tons per day, under the Chudo, Frugurt and Bio Max brands, was completed in May. A production line for yoghurt, with equipment produced by Tetra Pak (Sweden) and Hassia (Germany), with a capacity of 100 tons per day, will be launched soon at Timashevksy.

These investments were undertaken primarily in the course of 2002 and are the latest step in a continuing modernisation programme encompassing both the company’s existing and recently acquired facilities. The programme is aimed at ensuring Wimm-Bill-Dann’s dairy products continue to adhere to the highest international standards of quality.

Wimm-Bill-Dann Foods OJSC
16 Yauzsky Boulevard, Moscow, Russia
Phone: +7 095 733-97-26/9727
Fax: +7 095 733-97-25
web: https://www.wbd.com
E-mail: kiryuhina@wbd.ru

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.