Grigiskes AB - Notification on material event

GRIGISKES AB Group signed agreements on budgeting financial support of 11.95 million LTL for modernization of the heat sector

Vilnius, Lithuania, 2012-10-24 08:38 CEST (GLOBE NEWSWIRE) -- As it was
published on 27.07.2012 seeking to enhance production competitiveness, to
reduce impact of gas price increase on business and to modernize its heat
(steam) production facilities, GRIGISKES AB Company Group intends to implement
two projects in Vilnius and Klaipeda. For this purpose, GRIGISKES AB and
Klaipedos kartonas AB signed tripartite agreements with the Lithuanian Ministry
of Economy and Public Institution Lithuanian Business support Agency on the
Cohesion Fund award these projects. 

By these contracts the assistance of 11.95 million LTL (3.5 million EUR) from
the Cohesion Fund was allocated forGRIGISKES AB Group. Totally the companies
will invest 30 million LTL (8.7 million EUR) into modernization of the heat
sector. 

Till January 10, 2014 GRIGISKES AB plans to implement the project “Construction
of 10 MW steam boiler using renewable energy resources at GRIGISKES AB” No.
VP3-3.4-ŪM-02-K-02-020 of value of 11.9 million LTL (3.4 million EUR) and to
start using a new biofuel steam boiler. A subsidiary company Klaipedos kartonas
AB plans to implement the project “Modernization of the existing boiler plant
of Klaipėdos kartonas AB through use of renewable energy resources” No.
VP3-3.4-ŪM-02-K-02-003 of value of 18 million LTL (5.2 million EUR) and to
start using thermal energy (steam form) produced from biofuel in manufacturing
processes till February 28, 2014. 

It is expected that in Klaipeda new biofuel steam boiler will produce about 50
percent of heat consumption of the company's technological needs and in
Grigiskes, having regard to the current market situation, heat generated by the
new boiler will enable to entirely abandon the use of fossil fuel used in
production of heat required for the company's technological purposes. 


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