EKATERINBURG:  March 3, 2005 – Today, one of Russia's leading manufacturers of cosmetic and hygiene products, Open Joint Stock Company Concern "KALINA" (ISIN RU0007247243, Reuters: KLNA.RTS) ("KALINA") announced that its Board of Directors has decided not to increase the offer price of EUR 4.20 as offered to shareholders of Dr. Scheller Cosmetics AG (ISIN DE0007201303 / WKN 720 130) (“Scheller”) in the current Public Takeover Offer in Germany.

The Public Takeover Offer was approved by KALINA's Board of Directors on December 24, 2004 and the respective takeover offer document (Angebotsunterlage) in German was published on February 4, 2005 under https://www.kalina.org/poffer. The acceptance period of the Public Takeover Offer for shareholders of Scheller will lapse on March 4, 2005.

FOR MORE INFORMATION PLEASE CONTACT:

Kalina
Public Relations
Sergey Kazantsev
e-mail: pressa@kalina.org
tel./fax: +7 343 365 83 06

United Financial Group:
Victoria Lazareva, vlazareva@ufg.com
Julia Zhdanova, jzhdanova@ufg.com
tel.: 095 725 2647; fax: 095 725 2647