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 +38 044 502 8014 Sergey Evlanchik, CEO, and Dmitry Dragun, CFO Financial Dynamics +44 20 7831 3113 Ben Foster/ Charles Watenphul This information is provided by RNS The company news service from the London Stock Exchange