Ukrproduct Group Ltd 29 June 2005 29 June 2005 Ukrproduct Group Ltd ('the Group') AGM STATEMENT Speaking at Ukrproduct's first Annual General Meeting as an AIM listed company, Jack Rowell, Non-Executive Chairman of Ukrproduct Group Ltd made the following comments: "During 2004, the Group successfully achieved the challenging targets set out by the Board and remains one of the most profitable and dynamic food businesses in Ukraine. Net sales increased by 54% to £27 million, accompanied by improved profit margins resulting in a 42% increase to profits before tax of £1.7 million. Excellent progress has been made in our core business segments, with estimated further increases of 10 and 6 percentage points respectively to our leading market shares in the Ukrainian processed cheese and packaged butter markets. "Since the start of the current year trading has been in line with expectations, with further progress in all business segments. Our proven business model, together with our success in a dynamically evolving environment, supports our confidence that we will be able to improve our performance yet further in 2005, for the long-term benefit of our shareholders." For further information, contact: Ukrproduct Group +380 44 502 8014 Sergey Evlanchik, CEO Dmitry Dragun, FD Financial Dynamics +44 (0) 207 831 3113 Benjamin Foster Charles Watenphul Notes to editors Ukrproduct Group (UPG) is one of Ukraine's leading producers of branded foods. Headquartered in Kyiv and registered in Jersey, the company's main business focuses is 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. UPG recently reported strong preliminary results for the year ended 31 December 2004. Sales rose to £27.1 million (2003: £17.6m) and PBT increased to £1.7 million (2003: £1.2m). This information is provided by RNS The company news service from the London Stock Exchange