4 1 r4-prg123002.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 5151 SAN FELIPE, SUITE 1661 HOUSTON, TX 77056 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/Day/Year December 30, 2002 5. If Amendment, Date of Original (Month/Day/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

___________________________________________________________________________________________________________________________________ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect | | Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership | | | | | Beneficially |(D)or | | | | | | | A/| | Owned atFollowing |Indir | | | Date |Code|V| Amount | D | Price | ~~End~~Reported ~~of Month~~ Transac.|ect(I)| | ___________________________________________________________________________________________________________________________________| | | | | | | | | | | -----------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | -----------------------------------------------------------------------------------------------------------------------------------| ___________________________________________________________________________________________________________________________________| ___________________________________________________________________________________________________________________________________ Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1.Title of |2.Con- |3. |4. |5.Number of |6.Date Exer |7.Title and Amount |8.Price|9.Number of |10.|11.Nature of| Derivative |version |Transaction | Derivative |cisable and | of Underlying |of Deri| Derivative |Dir| Indirect | Security |or | | | Securities |Expiration | Securities |vative | Securities |ect| Beneficial | |Exercise| | | Acquired(A) or|Date(Month/ | |Secu | Benefi |(D)| Ownership | |Price of| | | Disposed of(D)|Day/Year) | |rity | ficially |or | | |Deriva- | | | |Date |Expir | | | Owned at |Ind| | |tive | | | | A/|Exer- |ation | Title and Number | | ~~End~~Following of |ire| | |Secu- | | | | | D |cisable |Date | of Shares | | ~~Month~~Reported |ct | | |rity | Date |Code|V| Amount | | | | | | Transaction|(I)| | ___________________________________________________________________________________________________________________________________| ~~Options~~Series A |~~$0.8125~~ (1) |12/1930/0102| HS | | ~~5000~~22750 | D | ~~|12~~06/1930/0195| N/A |Common ~~stock~~Stock|~~5000~~250000|$0.0001| 0 | I | ~~25000~~(2) | DPreferred | | | | | | | | | | | | | | | Stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -----------------------------------------------------------------------------------------------------------------------------------| ~~Options~~| |~~$0.12~~ |~~12/19/01~~ | T| | | ~~5000~~ | A |~~12/19/01|12/19/06|Common~~ ~~stock~~|~~5000~~ | ~~(1)~~ | ~~25000~~ | D | | -----------------------------------------------------------------------------------------------------------------------------------| ___________________________________________________________________________________________________________________________________|

Explanation of Responses: (1) The Issuer's Convertible Redeemable Series A Preferred Stock has a par value of $10.00 per share and are currently convertible into the Issuer's common shares at a conversion price of $0.91 per share. (2) These securities were owned by a limited partnership in which Mr. Gregory is the general partner. /s/David A. Grossman, Attorney-in-Fact December 31, 2002 ----------------------------------------- ----------------------- SIGNATURE OF REPORTING PERSON DATE

Filing Compare · GREGORY PAUL R