- Group sales rose 18.1% year-on-year to US$1,025.9 million

 - Gross profit increased 16.9% with gross margins remaining virtually unchanged at 28.1%

 - Adjusted EBITDA grew 24.2% to US$100.5 million, adjusted EBITDA margin1 increased to 9.8% from 9.3%

 - Net income up 15.4% to US$21.7 million

 - Operating income up 26.3% to US$61.4 million

 - Operating cash flow increased 40.4% amounting to US$59.4 million

Key Financial Indicators of 9m 2005

	9m 2005	9m 2004	Change
	US$ ‘mln	US$ ‘mln
Sales	1,025.9	868.9	18.1%
Dairy	735.1	598.2	22.9%
Beverages	227.1	224.7	1.1%
Baby Food	63.7	46.0	38.5%
Gross Profit	288.0	246.4	16.9%
Selling and distribution expenses	(141.8)	(126.8)	11.8%
General and administrative expenses	(78.4)	(66.5)	17.9%
Operating income	61.4	48.6	26.3%
Financial income and expenses, net	(15.9)	(14.7)	8.2%
Net income	21.7	18.8	15.4%
Adjusted EBITDA1	10 0.5	80.9	24.2%
CAPEX including acquisitions	65.3	57.0	14.6%

Sales in the Dairy Segment increased 22.9% from US$598.2 million in the first nine months of 2004 to US$735.1 million in the first nine months of 2005 and this was primarily attributable to organic growth. The average selling price rose 13.7% from US$0.73 per 1 kg in the first nine months of 2004 to US$0.83 per 1 kg in the same period of 2005. This increase was driven mainly by ruble price increases. The gross margin in the Dairy Segment stayed flat at 24.9 %.

Sales in the Beverages Segment increased 1.1% from US$224.7 million in the first nine months of 2004 to US$227.1 million in the same period of 2005. The average selling price increased 9.4% from US$0.64 per liter in the first nine months of 2004 to US$0.70 per liter in the same period of 2005. This increase was chiefly due to ruble price increases. The gross margin in the Beverages Segment remained stable at 35.3%.

Sales in the Baby Food Segment increased 38.5% from US$46.0 million in the first nine months of 2004 to US$63.7 million in the first nine months of 2005. The average selling price rose 19.0% from US$1.26 per 1 kg in the first nine months of 2004 to US$1.50 per 1 kg in the same period of 2005. This increase was driven primarily by an increase in the average ruble selling price and an increased proportion of higher priced products (mainly drinkable yogurts) in the overall product mix. The gross margin in the Baby Food Segment increased from 38.1% to 39.5%.

Selling and distribution expenses decreased from 14.6% to 13.8% y-o-y as a percentage of sales. Advertising and marketing expenses decreased as a percentage of sales from 4.4% in the first nine months of 2004 to 4.0% in the first nine months of 2005. General and administrative expenses as a percentage of sales remained flat at 7.6% . Operating margin increased from 5.6% to 6.0% as a result of cost cutting initiatives.

Financial expenses in the first nine months of 2005 increased 8.2% to US$15.9 million compared to US$14.7 million in the same period of 2004 which was mainly due to higher interest expenses.

Net income increased by 15.4% from US$18.8 million to US$21.7 million.

¹Note: See Attachment A for definitions of Adjusted EBITDA and Adjusted EBITDA margin and reconciliations to net income.

Attachment A

*Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to US GAAP Net Income

Adjusted EBITDA is a non-U.S. GAAP financial measure. The following table presents reconciliation of Adjusted EBITDA to net income (and Adjusted EBITDA margin to net income as a percentage of sales), the most directly comparable U.S. GAAP financial measure.

	9 months ended September 30, 2005		9 months ended September 30, 2004
	US$ ‘mln	% of sales	US$ ‘mln	% of sales
Net income	21.7	2.1%	18.8	2.2%
Add: Depreciation and amortization	39.1	3.8%	32.2	3.7%
Add: Income tax expense	20.8	2.0%	12.4	1.4%
Add: Interest expense	17.7	1.7%	17.0	2.0%
Less: Interest income	(1.0)	0.1%	(1.1)	0.1%
Less: Currency remeasurement gains, net	(2.3)	0.2%	(2.5)	0.3%
Add: Bank charges	1.5	0.2%	1.3	0.1%
Add: Other financial expenses (gain)	0.0	0.0%	0.0	0.0%
Add: Minority interest	3.0	0.3%	2.8	0.3%
Adjusted EBITDA	100.5	9.8%	80.9	9.3%

Adjusted EBITDA represents net income before interest, income taxes and depreciation and amortization, adjusted for interest income, currency remeasurement gains, bank charges and other financial expenses and minority interest. Adjusted EBITDA margin is Adjusted EBITDA expressed as a percentage of sales.

We present Adjusted EBITDA because we consider it an important supplemental measure of our operating performance. In particular, we believe Adjusted EBITDA provides useful information to securities analysts, investors and other interested parties because it is used in the “debt to EBITDA” debt incurrence financial measurement in certain of our financing arrangements.

Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as substitute for analysis of our operating results as reported under U.S. GAAP. Since we adjust EBITDA for recurring items in order to calculate Adjusted EBITDA, we particularly caution users that Adjusted EBITDA is not an alternative to net income, operating income or any other GAAP measure, nor to EBITDA. Moreover, other companies in our industry may calculate Adjusted EBITDA differently or may use it for different purposes than we do, limiting its usefulness as a comparative measure.

Adjusted EBITDA also should not be considered as an alternative to cash flow from operating activities or as a measure of our liquidity. In particular, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business.

WIMM-BILL-DANN FOODS

Consolidated Statements of Operations (unaudited)

(Amounts in thousands of U. S. dollars, except share and per share data)

	Nine months ended September 30 ,
	2005	2004
Sales	$ 1,025,866	$ 868,949
Cost of sales	(737,827)	(622,575)
Gross profit	288,039	246,374
Selling and distribution expenses	( 141,7 56 )	( 126,757)
General and administrative expenses	( 78, 413)	( 66,476 )
Other operating expenses, net	( 6,475 )	( 4,499 )
Operating income	61,395	48,642
Financial income and expenses, net	(15, 895 )	( 14,689)
Income before provision for income taxes and minority interest	45,500	33,953
Provision for income taxes	( 20,754 )	(12,380)
Minority interest	( 3,002 )	(2,801)
Net income	$ 21,744	$ 18,772
Other comprehensive income, net of tax
Currency translation adjustment	(10,1 49 )	2,670
Comprehensive (loss) income	$ 11,595	$ 21,442
Net income per share - basic and diluted:	$ 0. 49	$ 0.43
Weighted average number of shares outstanding	44,000,000	44,000,000

WIMM-BILL-DANN FOODS
Consolidated Balance Sheets
(Amounts in thousands of U.S. dollars)