The Board of Directors of the OJSC Concern “Kalina” has take a decision to recommend to the General meeting nominees for election of two independent directors in the Board of Directors. The following nominees are included in the bulletin for the secret ballot for election of the Board’s members.

Johan Grietsen Hendrik Vreeman, independent director.

Johan Grietsen Hendrik Vreeman was born on the 20^th November 1945, graduated from the university in Amsterdam and finished Wharton Business School in Philadelphia. He serves as a director for various companies in Russia as well as in Netherlands. Prior to joining Kalina he served as the Chief Executive of Rabo Black Earth B.V. from 1998 until 2002. He also currently serves as Managing Director of Corpeq B.V.Johan Vreeman has served as one of our Directors since 2000, starting for July 2003 he served as an independent director in the Board of Directors of the OJSC Concern “Kalina”, from May 2004 he is an independent chairman of the Board of Directors of the OJSC Concern “Kalina”.

Reinhold Schlensock was born in 1967. MBA degree (Diplom-Kaufmann). He worked for Procter&Gamble GmbH, Eckes AG, was a member of the directorate of Eckes Granini Deutschland GmbH. He is a expert in cosmetic, perfumery, household chemicals industries.

Elections for the Board of Directors will be conducted at the Extraordinary General Meeting on the 10^th August, 2004. Issues of the interim dividends for the first halve year of 2004 and of the election of the Board’s members are included in the agenda. The General Meeting will have to elect 7 members of the Board of Directors

About the company. JSC concern “Kalina “ is one of the leaders of the Russian perfumery and cosmetics producers. The leading brands of the company are “Black Pearl”, ”Clean Line” and “MIA” among the skin-care products, “32”, “Forest Balsam”- on the mouth-care market, ‘Angelica Varum” – among perfumes.

Concern “Kalina” consists of factories as follows, except factory in Ekaterinburg:

• Omsk factory of detergents
• Subsidiary "Pallada Ukraine" (Ukraine)
• Subsidiary factory "Novoplast"
• Kalina Overseas Holding B. V. (Netherlands)

Further information you may get from the press-secretary of the JSC concern ‘Kalina”- Kazantsev Sergey, tel./fax.(343) 365 83 06, e-mail: pressa@kalina.org.