Trading Statement

Ukrproduct Group Ltd
16 December 2005



16 December 2005

                              Ukrproduct Group Ltd

                                 Trading Update


Ukrproduct Group Ltd ("UPG" or "the Group"), is today providing the following
update on trading.

The consumer outlook in the Ukraine remains positive, with UPG maintaining its
market leading shares in its two core segments, processed cheese and packaged
butter. Turnover growth remains in line with expectations.

Over the last month, however, margins have been impacted by high raw material
prices and lower prices for skimmed milk powder in the export market. Whilst UPG
continues to believe the company will deliver strong profit growth in the
current year, this growth will not be as pronounced as previously expected as a
result of this impact on margins.

UPG is addressing this impact through the introduction of new high margin
products and the renegotiation of raw milk prices. The Group is also gradually
implementing increased pricing across its product range.

Notes to editors

Ukrproduct Group Ltd (UPG) is one of Ukraine's leading producers of branded
foods. Headquartered in Kyiv and registered in Jersey, the company's main
business focuses on the production and distribution of branded food products,
namely packaged butter and processed cheese, to wholesale and retail outlets in
Ukraine through its own distribution network. UPG also produces skimmed milk
powder for export to countries across Europe as well as the Far East. UPG is the
market leader in the processed cheese and packaged butter segments, with
estimated market shares of 33% and 23% respectively. UPG is one of Ukraine's
fastest growing companies within its sector, with compound average sales growth
of 55% between 2001-2004.

On 11 February 2005,Ukrproduct Group Ltd, became the first Ukrainian trading
group to be admitted to AIM. The company successfully placed 27.2% of its share
capital at 53.5p per share, giving the company an initial market capitalisation
of £22.5 million.


For further information:

Ukrproduct Group                                                [phone]
Sergey Evlanchik, CEO, and Dmitry Dragun, CFO

Financial Dynamics                                              [phone]
Ben Foster/ Charles Watenphul




                      This information is provided by RNS
            The company news service from the London Stock Exchange