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UKRPRODUCT RESUMES THE PRODUCTION OF HARD CHEESE: Latest news

29 June 2010

Kyiv, Ukraine – June 29, 2010 – Ukrproduct Group Limited (“Ukrproduct” or the “Group”) (AIM: UKR), a leading producer and distributor of branded dairy products in Ukraine, announces that it has resumed the production of hard cheese at the Starokonstantinovskiy Dairy Plant.

Given favourable pricing and the wide availability of raw milk in Ukraine during the summer period, Ukrproduct has restarted the production of hard cheese and expects to start selling its products in the second half of 2010 when hard cheese is usually seasonally in demand.

Ukrproduct suspended the production of hard cheese in the summer of 2009 following price cutting and over saturation of the market by local producers in the first half of the year. Hard cheese prices have been rising since the second half of 2009, and the profitability of hard cheese sales is expected to improve in the second half of 2010.

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