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Milkiland N.V. announces intention to conduct an Initial Public Offering and to list on the Warsaw Stock Exchange

3.11.2010

Milkiland, a leading diversified dairy producer operating in the CIS, one of the largest and dynamic dairy markets globally, today announces its intention to conduct an initial public offering and to seek admission to list its shares on the main market of the Warsaw Stock Exchange.

“Milkiland is at the stage of its development where it can consider conducting a successful public offering and entering the stock exchange,” said Milkiland’s CEO Vyacheslav Rekov. “Today we are already a leading player in the market for dairy products in the CIS countries, primarily Russia and Ukraine. We expect that the public offering and listing on a European stock exchange will allow us to take advantage of opportunities for growth, both organically and through consolidation within our industry. The Warsaw Stock Exchange is a natural choice for us to list Milkiland’s shares. It is a well recognised financial centre in Central & Eastern Europe appealing to a wide audience of financial investors, local and international. We hope that WSE listing will help us achieving high share liquidity and recognition among investors. This is extremely important in the context of our growth strategy aimed at becoming one of the flagship international vertically integrated companies with a diversified portfolio of products.”

UniCredit CAIB Poland S.A. will act as the offeror and listing agent for the Offering and listing of the Shares on the WSE (the “Offeror”). UniCredit Bank AG, London Branch, is the Sole Global Coordinator and Sole Bookrunner of the Offering. Concorde (Bermuda) Limited acts as a Co-Lead Manager.

An offering and listing on the Warsaw Stock Exchange are subject to receipt of all necessary regulatory approvals, including the relevant approval of the prospectus by the Dutch Financial Supervision Authority / “The Autoriteit Financiële Markten (the "AFM") and notification of Polish Financial Supervision Authority about such an approval, registration of the shares with the Polish National Depository for Securities and admission to trading on the main market of the Warsaw Stock Exchange. The Offering will consist of a public offering in Poland and an international offering to certain institutional investors outside Poland, in each case in accordance with applicable securities laws.

Milkiland Overview

Milkiland is one of the largest dairy producers in Russia and Ukraine. Having consistently implemented its growth strategy, it built an integrated business which is well diversified by geography and by product lines. After the 2008 acquisition of the Ostankino dairy plant, the third largest player in the Moscow market, Milkiland established its production footprint in Russia. Milkiland’s business covers all parts of dairy supply chain, from raw milk collection through production and sale of dairy products. A wide portfolio of products and brands, combined with scalable and flexible production capacities, provides Milkiland’s business a natural hedge in volatile environment and allows Milkiland to achieve stable financial results. In 2009 the Company’s revenues amounted to EUR 200 million, adjusted EBITDA to EUR 32.5 million and net profit to EUR 8.2 million.

For further information please contactmilkiland.nl
Łukasz Wójcik
NBS Communications
telmilkiland.nl +48 22 826 74 18
e-mailmilkiland.nl lwojcik@nbs.com.pl

This publication is for promotional purposes only and under no circumstances shall it constitute the basis for a decision to invest in securities of Milkiland N.V. (the “Company”). The offering prospectus (the “Prospectus”) prepared in connection with the offering and admission of the Company’s shares to trading on the Warsaw Stock Exchange (the “WSE”) is the sole legally binding document containing information on the Company and the public offering of its shares in Poland (the “Offering”).

The Prospectus was submitted for approval to Autoriteit Financiële Markten (“AFM”), the Netherlands Authority for the Financial Markets, and will be made available to the public once approved and all the conditions provided under Art. 37 of the Public Offering Act dated 29 July 2005 once the Polish Financial Supervision Authority was notified by the AFM of the approval of the Prospectus and received a certificate of the approval of the Prospectus along with the Prospectus and a translation of its summary into Polish.

The Prospectus in electronic form will be available on the following websitesmilkiland.nl of the Company (www.milkiland.nl), the Offeror (www.ca-ib.pl) and the Warsaw Stock Exchange (www.gpw.pl), and of the AFM (www.afm.nl). Printed copies of the Prospectus will be available at the Company’s offices and at the registered offices of the Offeror in Poland and at the customers service points.