Linas Agro Group AB - Notification on material event

Linas Agro Group, AB completed the takeover of Ukraine-based producer and trader of fertilisers

Linas Agro Group, AB and Arvi ir ko, UAB have completed a securities
sales-purchase agreement, according to which Linas Agro Group, AB has bought
the 50% stake of Ukraine-based company CJ-SC UKRAGRO NPK for EUR 3 694 800 (LTL
12 757 405)  from Arvi ir ko, UAB. Since 1st of July Linas Agro Group, AB
controls 63.38% stake of SJ-SC UKRAGRO NPK, while together with the main
stockholder of Linas Agro Group, AB - the Danish company Akola ApS, it controls
100% stake of CJ-SC UKRAGRO NPK. 

The acquisition of the block stake of Ukrainian producer and trader of
fertilisers will enable Linas Agro Group, AB to grow in fertiliser sales and
strengthen company's positions in the Ukraine. The company is planning not only
to strengthen trade in fertilisers but also to expand grain and rapeseed export
from Ukraine through the Baltic and the Black Sea ports. 

Founded in Kiev, a capital city of Ukraine, in 2002, the company CJ-SC UKRAGRO
NPK is engaged in production of blended NPK fertilisers as well as wholesale
and retail trade of various fertilisers. Thirteen fertiliser distribution
warehouses run by CJ-SC UKRAGRO NPK are located in the most important Ukraine's
agricultural regions and in total can store about 50 thousand tons of
fertilisers. NPK fertilizers blends are being produced in production units
located in west, central and east Ukraine. The company has 183 employees. 

In 2009 the company sold 152 thousand tons of fertilisers, while in 2010 it
plans to sell 200 thousand tons, i. e. 32% more as compared to the last year.
The turnover of the company was LTL 204m in 2008, LTL 147m in 2009, the
forecast for 2010 is LTL 180m. 

The company's trade results were heavily influenced by the worldwide crisis in
2009. However, the company has finished the year profitably. The trade of
fertilisers is recovering in 2010, and CJ-SC UKRAGRO NPK is expected to show
better results. The average company's EBITDA was LTL 12.4m in 2007-2009. 

After consolidation of CJ-SC UKRAGRO NPK into Linas Agro Group, AB financial
report, the group's turnover should grow by LTL 173m and EBITDA - by LTL9.5m in
the financial year of 2010-2011. 

More information:

Corporate Communication Director Jorinta Zolubaitė
Ph. +370 45 50 73 33
E-mail j.zolubaite@linasagro.lt