4 1 r4-prg1201.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP ( ) Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instructions 1(b). 1. Name and Address of Reporting Person PAUL R. GREGORY 5122 HUISACHE BELLAIRE, TX 77401 2. Issuer Name and Ticker or Trading Symbol BALTIC INTERNATIONAL USA, INC. BISA 3. IRS or Social Security Number of Reporting Person (Voluntary) 4. Statement for Month/Year December 2001 5. If Amendment, Date of Original (Month/Year) 6. Relationship of Reporting Person(s) to Issuer (Check all applicable) (X) Director ( ) 10% Owner ( ) Officer (give title below) ( ) Other (specify below) 7. Individual or Joint/Group Filing (Check Applicable Line) (X) Form filed by One Reporting Person ( ) Form filed by More than One Reporting Person

Explanation of Responses: (1) These options were granted pursuant to the Issuer's 1992 Equity Incentive Plan; therefore, no consideration was paid. /s/David A. Grossman, Attorney-in-Fact January 10, 2002 ----------------------------------------- ----------------------- SIGNATURE OF REPORTING PERSON DATE

GREGORY PAUL R 4