Invalda AB - Notification on material event

Invalda LT, AB will concentrate on asset management business

Invalda LT, AB, one of the major Lithuanian investment companies, is planning
to establish the management company and seeks to become one of the leading
private equity, real estate, investment and pension funds management companies
in the region. 

After the approval of the shareholders, three to four companies which manage
homogeneous assets and which are planning to separate from Invalda LT, AB, will
be applying for closed-end investment company licenses. It is assumed that they
will be applying for the strictest regulatory regime which is imposed on retail
investors. 

“All the Invalda LT, AB shareholders (over 4.2 thousand), will proportionally
own shares in the separated companies. All the shares of these newly
established companies are planned to be quoted on the NASDAQ OMX Vilnius
Exchange”. - Darius Sulnis, the president of Invalda LT, AB, said. 

“Preliminarily the first few investment companies will operate in the
agricultural land sector, real estate sector and IT sector. It is expected that
after receiving their licenses, and evaluating the investment environment, all
these companies will raise additional capital. We also expect to establish new
private capital funds”. -Mr. Sulnis said. 

One of the main reasons behind the reorganization is that the company's
capitalization is usually lower than the total value of the separate assets
because investors cannot predict sectors where investments will be made. 

The reorganization will allow investors to select the asset or business in
which they would like to invest. “The Investors will be able to select the
sector, the risk level as well as the term of the investments. By licensing the
activities and being under the supervision of the Bank of Lithuania, there will
be an increase in transparency and reduction in investment risk”. - Mr. Sulnis
said. 

According to Mr. Sulnis, the raised new capital will allow to implement larger
projects. 

The agricultural investment company will be created on the basis of 17
companies (altogether they own about 2.9 thousand hectare of land) owned by
Invalda LT, AB. “We think that the agricultural land in Lithuania is one of the
most undervalued in Europe. Long farming traditions and increased efficiency
allows expecting the increase of land price”. -Mr. Sulnis said. 

The real estate investment company should be created on the basis of currently
operating company Invaldos Nekilnojamojo Turto Fondas, AB. At the present
Invalda LT group owns real estate objects in Vilnius and Kaunas with the total
area of 50 thousand square meters. 

“We think that the recovery of the economy will increase the real estate prices
which shrank due to the crisis. Also we expect to create value investing into
readjustment and development of owned real estate objects and acquiring the new
ones”. -Mr. Sulnis said. 

The first investment of the IT investment company would be 80 percent of shares
in BAIP Group. This group currently owns companies in Lithuania, Norway and
Tanzania. Moreover, it has implemented projects in more than 50 countries. 

”Lithuania is the exporter of the IT services. Many start-up and mature
companies' business models are suitable for the international markets and
growth of value”. - Mr. Sulnis, said. 

Invalda LT, AB will concentrate on asset management business and will seek to
receive the main income from the management activity. The other step could be a
separation of the remaining assets. On this basis a new private equity
investment company could be established or the remaining assets could be sold.
Money generated by assets of Invalda LT, AB would be used as the primary
capital establishing funds. 

The implementation of the planned asset management changes will depend on the
decisions of the General Shareholders Meeting and the Bank of Lithuania.
Therefore, there is a possibility that the reorganisation of a part of it may
not happen or the structure of the proposed reorganisation may change. 


         The person authorized to provide additional information:
         Darius Sulnis
         President
         Phone +370 5 279 0601
         Email: darius@invaldalt.com

Attachments:

Presentation of asset management business model of Invalda LT AB.pdf