AIM Admission

Ukrproduct Group Ltd
11 February 2005

11 February 2005.



                      Ukrproduct Group Ltd (the "Company")

 Placing (the "Placing") of up to 11,214,953 new Ordinary Shares of 10p each in
  the Company (the "Placing Shares") at 53.5p per share (the "Placing Price")



Ukrproduct Group Ltd ("UPG" or the "Company") incorporated on 18 August 2004 is
the holding company for a group of dairy based FMCG (fast moving consumer goods)
businesses located in Ukraine, Eastern Europe.



Key highlights:



  • The Company is raising approximately £5.0 million (net of expenses)
    through the placing of 11,214,953 new Ordinary Shares.



  • On Admission, at the Placing Price, the Company will have a market
    capitalisation of £22,050,000 and a "free float" of 27.21% of its enlarged
    issued share capital of UPG.



  • Each of the Directors has undertaken to the Company that they will not
    sell, transfer or otherwise dispose of any interest in the shares for a
    period of 12 months from the date of Admission.



  • The total funds raised from the Placing will be utilised by the Company to
    invest in new plant and equipment, in core sectors, to expand the
    distribution network and to provide additional working capital for the
    Group, as well as to cover the expenses of Admission. The Directors believe
    that Admission will raise the profile of the Group and enhance its
    reputation with customers and with its suppliers.



Jack Rowell, non-executive Chairman of UPG commented,

'We are delighted to have completed this Placing and admission to AIM. In its
transition from a private to a publicly quoted company, admission to AIM, the
first for a Ukrainian trading group, represents a great milestone for UPG.'



Sergey Evlanchik, Chief Executive of UPG commented,

'The successful admission of UPG reflects the confidence our investors have in
the Company.  We hope that the momentum gained from admission will continue to
help UPG build on its track record of profitable growth as well as consolidating
and expanding on its position as a domestic market leader.'



His Excellency, Ihor Mitiukov, Ukrainian Ambassador to the Court of St James's,
London commented,

'I am pleased to see the first Ukrainian trading group, Ukrproduct Group,
admitted to AIM of the London Stock Exchange. Over the last few years, Ukraine
has shown tremendous and continuing economic growth and improvement of its
business transparency. The 'Orange revolution' that took place in Ukraine has
manifested itself not only in the immense interest of political society, but
also provided an additional positive impulse for business people around the
world. I am hopeful that this fortunate impetus will continue to favour the
investment opportunities for both Ukrainian businesses and foreign investors
doing business in Ukraine.'





W.H.Ireland Limited, is acting as Nominated Adviser and Broker to the Company as
well as joint placing agent together with Metropol (UK) Limited.





Notes to editors

Ukrproduct Group

Ukrproduct Group (UPG) is one of Ukraine's leading producers of branded foods.
Headquartered in Kiev 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 dried-milk powder for
export to countries across Europe as well as the Far East. UPG's sales for the
year ended 31 December 2003 more than doubled to £17.59m with profits before
exceptional income and taxation of £1.012m.



Ukraine



Independent since 1991, Ukraine has a growing economy in which disposable
incomes are rising. In recent years Ukraine has experienced economic growth
fuelled by the rising affluence of domestic consumers and external demand for
Ukrainian products. The Ukrainian State Statistics Committee has reported that
GDP grew 12.7% to 142.7 billion UAH (approximately £14.9 billion) in the first
half of 2004. The country's population at the end of 2003 was approximately 48
million. Ukraine borders the recently enlarged EU and is one of the larger
countries in Europe, being comparable in size to France and Spain.






For more information, contact:


Ukrproduct Group
Sergey Evlanchik, CEO                                [phone]
Dmitry Dragun, FD


Financial Dynamics:                                  [phone]
Benjamin Foster
Charles Watenphul

W.H. Ireland Limited                                 [phone] / 6644
Laurie Beevers
David Youngman

Metropol                                             [phone]
Alexander Selegenev




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