2nd smoke room in operation

Ukrproduct Group Ltd
08 August 2007

                              UKRPRODUCT GROUP LTD

                                 (the "Group")

   SECOND SMOKE-ROOM FOR PRODUCTION OF SMOKED SAUSAGE CHEESE IN OPERATION AT
                                   MOLOCHNIK



A second smoke-room for the production of smoked sausage cheese is now fully
operational at the Molochnik plant in Zhytomyr. The new German-made smoke-room
has a maximum capacity of 220 tonnes of cheese per month and is an addition to
Molochnik's existing smoke-room which was commissioned in 2006. The installation
of the second smoke-room doubles the Group's monthly production capacity for
smoked sausage cheese to 440 tonnes per month and brings substantial
improvements in process efficiency and product quality to the Group and its
customers.

Production efficiency is bolstered by the smoke-room's improved energy
efficiency, higher smoke density, better humidity control, greater coherence of
the production stages and the elimination of production bottlenecks. The quality
of smoked cheese obtained by application of the smoke-room is enhanced by
smaller shrinkage of the product, deeper heat absorption, a longer shelf life
and, in the opinion of the directors, superior taste. The Molochnik plant is the
only facility in Ukraine producing smoked sausage cheese using this modern
technology. The investment in the new smoke-room will help the Group boost
production capacity of this higher-margin product in anticipation of a seasonal
increase in sales.



For further information please contact:


Ukrproduct Group Limited                             [phone]
Iryna Yevets, CEO,
Dmitry Dragun, CFO,


WH Ireland Limited                                   [phone]
David Youngman







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