Grigiskes AB - Notification on material event

GRIGISKES AB Group plans investment of 30 million Litas into modernization of the heat sector

Vilnius, Lithuania, 2012-07-27 11:22 CEST (GLOBE NEWSWIRE) -- 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. 

Construction of a new minimum 17.5 MW thermal output biofuel boiler, which is
partly to replace the existing boilers using natural gas, is planned on the
premises of Klaipedos kartonas AB in the course of implementation of the
project “Modernization of the existing boiler plant of Klaipedos kartonas AB
through use of renewable energy resources”. It is planned that the new biofuel
boiler will generate approx. 50 percent of heat (steam) required for the
company's technological needs. Following completion of the project, Klaipedos
kartonas AB will reduce the costs of thermal energy production by approx. 40
percent. In addition, it is planned that the project will enable to supply part
of the heat generated at a lower cost to the district heating network of
Klaipeda City. 

The assistance of up to 6.0 million Litas (1.7 million EUR) from the EU
structural funds and the State Budget of the Republic of Lithuania was
allocated for the planned Klaipedos kartonas AB project under 24 July 2012
Order No. 4-740 of Minister of Economy of the Republic of Lithuania. Total
project costs are estimated at 18.0 million Litas (5.2 million EUR). 

Investment of 11.9 million Litas (3.4 million EUR) has been earmarked for
implementation of the project “Construction of 10 MW steam boiler using
renewable energy resources at GRIGISKES AB” which foresees building of a new
minimum 10 MW thermal output biofuel boiler on the premises of GRIGISKES AB.
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. In addition, it is
planned that the project will enable to supply heat at a lower cost to the
district heating network of Vilnius City. 

The assistance of up to 5.95 million Litas (1.7 million EUR) from the EU
structural funds and the State Budget of the Republic of Lithuania was
allocated for the planned GRIGISKES AB project under 24 July 2012 Order No.
4-740 of Minister of Economy of the Republic of Lithuania. Total project costs
are estimated at 11.9 million Litas (3.4 million EUR). 


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