Ukrproduct Upgrades Production of Spreads

Ukrproduct Upgrades Production of Spreads

Ukrproduct Group

FOR IMMEDIATE RELEASE August 2, 2010

UKRPRODUCT UPGRADES PRODUCTION OF SPREADS

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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For further information, please visit www.ukrproduct.com or contact:

Ukrproduct Group Ltd.	Â	Â	Shared Value Limited
Sergey Evlanchik			Larisa Kogut-Millings
Chief Executive Officer			Investor Relations
Tel: [phone]			Tel. [phone]
[e-mail]			[e-mail]
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WH Ireland Limited			Metropol (UK) Limited
Robin Gwyn			Natalia Pastukhova
Tel: [phone]			Tel. [phone]

Ukrproduct Group Ltd is one of leading Ukrainian producers and distributors of branded dairy products. The Group’s product portfolio includes processed and hard cheese, skimmed milk powder (SMP) and butter. Ukrproduct has built a range of recognisable product brands (“Our Dairyman”, “People’s Product”, “Creamy Valley”, “Molendam”, “Farmer’s”) that are well known and highly regarded by consumers. The Group has modern production facilities that comprise four operational dairy plants in western and central regions of Ukraine (Molochnik, Starokonstantinovskiy Dairy Plant, Krasilovskiy Dairy Plant and Letichiv Dairy Plant) with a total annual integrated capacity of approximately 60,000 tonnes of dairy products. With its own fleet of more than 150 vehicles, Ukrproduct has one of the largest logistics and distribution networks in Ukraine which covers the country’s eight major cities. The Group reported total assets of approximately GBP 18.3 million as at December 31, 2009 and consolidated revenues of approximately GBP 43.2 million for the twelve months ended 31 December 2009. Ukrproduct’s securities are traded under the symbol “UKR” on AIM, a market operated by the London Stock Exchange.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. These statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in such projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Ukraine, rapid technological and market change in our industry, as well as many other risks specifically related to the Group and its operations.