November,3, 2004.Today the largest Russian perfumery and cosmetics manufacturer JSC Concern “Kalina” has announced financial results for the 9 months of the year 2004, prepared according to the Russian Standards of Accounting. Sales according to the results of the 9 months of the year, reached 3 760 thousand rubles. As compared to 9 months of the year 2003 the sales of ‘Kalina” increased by 5.6 %.

Further you can find some of the non-consolidated non-audited Russian financial statements for the nine months of the year 2004. The full details of the company’s financial statements you can find on the web-site of the Concern:www.kalina.org.

Despite seasonal fall in demand, raise in proceeds of the company in the third quarter of the year 2004 keeps the level of the first half of the year 2004 while the gross margin was increasing in a progressive way. The major factor for the increase in gross margin is the on-going raise of the brands’ shares in the sales of the company ( more than 70% according to the results for 9 months 2004). Increase in sales profit besides raise in gross margin was caused by seasonal cutting down advertising costs in the third quarter of the year 2004.In the fourth quarter of the year 2004 the Company is going to intensify advertising support of its brands in order to take advantage from seasonal raise in demand at the end of the year 2004 as well as in spring 2005.

About the company.JSC concern “Kalina “ is one of the leading 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 the parent enterprise in Ekaterinburg, Omskiy factory of detergents, subsidiary "Pallada Ukraine" (Ukraine), "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.

Statements on development prospects of the company. Certain information of the present press-release may contain forecasts or any other statements on the development prospects or future financial indices of the JSC concern ‘Kalina”. You should bear in mind that these statements do not guarantee attaining the stated results

or occurrence of any forecast events of company’s performance. They include risks, uncertainty and assumptions which the company can not exactly forecast. Correspondingly, actual indices and results of company’s operation may considerably differ from the stated data or forecasts shown in the statements on the development prospects of the company. The company does not intend to make any changes in the indicated statements in order to bring them into accord with actual results.