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UKRPRODUCT UPGRADES PRODUCTION OF SPREADS: Latest news

02 August 2010

Kyiv, Ukraine – August 2, 2010 – Ukrproduct Group Limited (`Ukrproduct` or the `Group`) (AIM: UKR), one of the leading producers and distributors of branded dairy products in Ukraine, announces that it has completed the upgrade of its spreads production.

Ukrproduct has transferred the production of bulk spreads from the Zhmerynka plant, which has now been closed, to Starokonstantinovskiy Dairy Plant (`Starokonstantinovskiy`) and introduced new technology which has resulted in encouraging savings in production costs and simultaneously increased the quality and texture of the product. As part of this upgrade, Ukrproduct has also improved its auxiliary infrastructure, including the installation of new cooling equipment.

As a result of these improvements, Ukrproduct expects to increase the production of both bulk and packaged spreads under the `Vash Molochnik` (`Your Dairyman`), `Narodny Product` (`People’s Product`) and `Fermerskoye` (`Farmer`s`) brands for the expanding mass market by the end of 2010. Furthermore, the consolidation of spreads production at Starokonstantinovskiy will allow Ukrproduct to achieve better efficiencies in the production, packaging and distribution of its products.

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