Vilniaus Baldai AB - Other information

Vilniaus baldai, AB invested over LTL 12 million into new equipment

Vilnius, Lithuania, 2013-02-11 15:00 CET (GLOBE NEWSWIRE) -- Vilnius, 11
February: In 2012, Vilniaus baldai AB, a company engaged in furniture
production, made an investment in the amount of LTL 12.3 million into
modernization of equipment and implementation of up-to-date technologies. The
Company paid a lot of attention to modernization and maintenance of production
equipment, optimization of technological processes and increase in work
efficiency. 

In January of this year, Vilniaus baldai AB completed installation works of new
calibration and mortising line , the cost of which reached LTL 10 million, and
started continuous production. Installation of this line was launched in
November 2012.  The installation was made by the specialists from a German
company Homag Group. The facility is intended for processing of furniture part
edges and mortising. At present, the line is under testing and adjustment works
are carried out and also qualified operators are being trained and prepared. At
the end of February of this year, Vilniaus baldai AB intends to start mass
production employing this equipment. 

In 2012, Vilniaus baldai AB, invested LTL 12.3 million of its own funds into
equipment modernization. According to Renatas Rimkūnas, a production manager at
Vilniaus baldai AB, the Company is currently not increasing its production
output, as it still updates old and technologically outdated equipment. In
2013, the Company intends to continue modernization of production equipment and
plans to invest another LTL 15 million into new equipment from its own funds. 

Vilniaus baldai AB produces and sells to Swedish concern IKEA more than thirty
different products. In 2013, the Company‘s product portfolio will change
substantially: a part of products, which have been produced so far, will not be
produced at all, while at the same time a production of sixteen new products
will be launched. Investments of Vilniaus baldai AB into modern equipment will
allow implementation of modern technologies and ensure compliance with quality
requirements. R. Rimkūnas, a production manager, maintains that The Company
intends to launch manufacturing of new products in stages: children‘s furniture
will be started to be produced at the end of March of this year, while the
Company will be fully prepared for production of other new products by the end
of 1st half of this year. 

Currently, Vilniaus baldai AB, actively cooperates with IKEA concern regarding
introduction of additional new products and their  manufacturing is planned to
start in the autumn of this year. 

Wide new product portfolio introduction into production within a short period
of time shows IKEA trust in our Company, and shows a remarkable ability to
compete for orders. Vilniaus baldai AB intends to pursue implementation of
strategy that involves seeking improvement in production quality and work
efficiency, rational use of resources and reduction in costs. 

Vilniaus baldai AB exports all its production to the Swedish concern IKEA.
Lithuanian investment company Invalda AB holds a controlling interest in
Vilniaus baldai AB. The shares of Vilniaus baldai AB are listed on the Official
Trading List of the NASDAQ OMX Vilnius Stock Exchange. 


         Renatas Rimkūnas
         Vilniaus baldai AB, production manager,
         tel. (8-5) 2525700