Vilniaus Degtine AB - Notification on material event

“Vilniaus degtinė” to Terminate its Production

“Vilniaus degtinė” will discontinue its production in January due to rapidly
decreasing sales. As the result of another increase, 15 percent, in the excise
duty on strong drinks starting the beginning of 2009, its production may be
terminated for a long time. 

In January 2009, the “Vilniaus degtinė” company plans to bring to a halt not
only the main plant, but also the Obelių spirit distillery 

Due to the increased excise duty, the “Vilniaus degtinė” company will be forced
to raise the prices of its products. This in turn will influence its sales.
Undoubtedly, unable to buy legal quality drinks, people look for them on the
black market. Due to the Seimas's resolution to increase the excise on strong
alcoholic drinks, the cessation of operations for the factory that employs 250
people may last for an indefinite period of time. 

Laurynas Miškinis
Director of marketing and commerce
+370 5 2135090