Linas AB - Notification on material event

Business structure reorganization of AB “Linas” Group of companies

On May 10, 2008 the Board of AB “Linas” decided to reorganize business
structure of AB “Linas” Group of companies in order to specialize business of
Group of companies and to improve management. It was decided to implement the
business structure reorganization of AB “Linas” Group of companies as follows: 

1.To establish two new joint stock companies UAB “Lino aptarnavimas” and UAB
“Lino apdaila”. To invest into each company 10 000 (ten thousand) Lt authorized
capital, signing 100% (one hundred percent) shares of each establish company. 
2.To transfer part of UAB “Linas Nordic” employees to the company UAB “Lino
apdaila” in order to execute finishing and sewing services. 
3.To transfer part of UAB “Linas Nordic” employees to the company “Lino
aptarnavimas”  to execute technical services and consulting, personnel hire,
bookkeeping accounting and other services. 
4.UAB “Linas Nordic” will execute linen yarns production, dyeing and weaving
services after the reorganization. 
5.To transfer part of UAB “Linas Nordic” employees to the company AB “Linas” to
execute buying, sales and property management functions. 
6.AB “Linas” will obtain part of UAB “Linas Nordic” property for the market
price and will intercept part of rights and obligations acc.to the contracts
with third parties (including obligations acc.to the credit contracts with AB
SEB bank). 

Ramūnas Lenčiauskas
“Linas” AB director
Tel.: +370 45 506100