Grigiskes AB - Notification on material event

GRIGISKES AB has signed a financing contract for a new paper manufacturing machine

Vilnius, Lithuania, 2013-02-21 07:35 CET (GLOBE NEWSWIRE) -- On 20th February
2013, GRIGISKES AB and SEB bank AB signed a loan supply contract for LTL 35 Mio
(EUR 10.1 Mio). This begins the third stage of the investment program announced
in April 2011, the company's President Gintautas Pangonis announced. 

As announced in earlier reports about material event, in 2012 GRIGISKES AB
completed the first stage of the investment program when it invested LTL 20.5
Mio (EUR 5.9 Mio) and built and put into operation a new corrugated cardboard
production unit equipped with modern production lines. The second stage
consisted of an investment of another LTL 12.5 Mio (EUR 3.6 Mio) to increase
the output of the paper production unit by the addition of four new paper
processing production lines. 

The loan to be obtained as a result of the financing contract signed yesterday
will be used to purchase a new paper manufacturing machine. This investment
project will take two years and will involve more than LTL 53 Mio (EUR 15.3
Mio). It is planned to have the new production line operating by the end of
2014. GRIGISKES AB intends to purchase a new, up-to-date, European paper
manufacturing machine. This paper manufacturing machine will be the most modern
and will permit the company to adapt more quickly to the ever-fluctuating needs
of the market, to satisfy clients' requirements more satisfactorily, to produce
a product of even higher quality and to expand the product range. There is no
doubt that these investments will help the company strengthen its position in
the European market and will make it possible for it to compete successfully
with other manufacturers of paper products. It is foreseen that the production
capabilities of the newest paper manufacturing machine will be double those
that currently exist; and the new paper manufacturing machine will replace the
two machines with the lowest output of the three paper manufacturing machines
that are currently operating. 

GRIGISKES AB plans that at the end of 2014 when it has implemented the
above-mentioned investment program, sales of the company's products will double
in the following two years. It is hoped that the growing sales figures of the
group of companies will reach LTL 500 Mio (EUR 145 Mio). 


         Gintautas Pangonis
         President of GRIGISKES AB
         (+370-5) 243 58 01