Linas AB - Notification on material event

Preliminary activity results of AB “Linas” group of companies of year 2007 and prognosis for year 2008

AB “Linas” group of companies incomes for year 2007 make 64.4 mln Lt (18.7 mln
EUR). In 2006 the incomes were 60.1 mln Lt (17.4 mln EUR). Actual sales incomes
of year 2007 are less in 4.7 mln Lt (1.36 mln EUR) than planned incomes and in
comparison with the incomes of year 2006 increased in 4.3 mln Lt (1.2 mln EUR)
or in 7.2 %. 

Profit before taxation of year 2007 - 0.7 mln Lt (0.2 mln EUR), the loss of
year 2006 - 4.5 mln Lt (1.3 mln EUR). Preliminary profit before taxation of
year 2007 is less in 0.9 mln Lt (0.3 Mln EUR) than was planned. 

Group of companies EBITDA of year 2007 - 3.2 mln Lt (0.9 mln EUR); in 2006
EBITDA was negative -1.86 mln Lt (-0.54 mln EUR). 

Export volumes of AB “Linas” subsidiary company UAB “Linas Nordic” made 93%
production sales in year 2007 and in year 2006. 

In year 2007 in subsidiary company it was allocated 3.3 mln Lt (0.96 mln EUR)
for technological equipment obtaining and renovation. In year 2006 1.8 mln Lt
(0.5 mln EUR) was allocated for investment and business projects. 

In 2007 planned profit before taxation was not achieved because of objective
economical factors: price increase for raw material (scutched linen fibre,
linen and cotton yarns) which are used in AB “Linas” subsidiary company UAB
“Linas Nordic”; increase of wages; price increase of technological energy. All
the factors raised the increase of production cost price and increased activity
expenditure of the company. The main reason which influences production and
sales volumes of the subsidiary company is the textile items import from Asian
countries which particularly increased from year 2005 after full liberalization
of textile items sales and after cancellation of all quantity limitations for
the import of textile items. 

On February 14, 2008 the Board of AB “Linas” confirmed consolidated strategic
objectives of AB “Linas” group of companies for year 2008: sales incomes 70.4
mln Lt (20.4 mln EUR), profit before taxation 1.3 mln Lt (0.4 mln EUR). It is
planned to allocate 6.3 mln Lt (1.8 mln EUR) for the obtaining of new
technological equipment and renovation. 


Lilijana Puriene
Director
+370 45 506157