ALT investicijos AB - Notification on material event

Re received answer by the Privatisation Agency of the Republic of Serbia

As it was announced earlier in the notice on material event of 12 May 2010,
with reference to the 29 March 2005 Agreement of the Government of the Republic
of Lithuania and the Council of Ministers of Serbia and Montenegro on
reciprocal investment promotion and protection, on 12 May 2010 the Company sent
an official notice to the Government of the Republic of Serbia, whereby the
Company initiated the official negotiations regarding infringement of the
rights of the Company, as an investor, and invited to resolve the existing
dispute by way of amicable negotiations regarding the remuneration of losses
sustained by the Company. 
The Company informs that by the 12 November 2010 e-mail it received the answer
from the Ministry of Economy and Regional Development of the Republic of Serbia
to the above mentioned official notice sent by the Company. In the
abovementioned response the Company is informed that Serbia disagrees with the
request of the Company to compensate the damages incurred by the Company and,
as they state, the Privatisation Agency of the Republic of Serbia did not
violate the standards stipulated in the above agreement on mutual promotion and
protection of investments. Therefore, in their opinion, there are no grounds
for negotiations proposed by the Company in its official notice. 
Since 12 November 2010 to date, the Company has tried to find a possibility to
negotiate with the Privatisation Agency of the Republic of Serbia by trying to
recover part of the funds invested and lent to the Serbian public company
Beogradska industrija piva (BIP), however, today such possibility has failed. 
On 7 December 2010, the Company, as the respondent, received a notice from the
Foreign Trade Court of Arbitration at the Serbian Chamber of Commerce (the
Serbian Arbitration) to the effect that the Privatisation Agency of the
Republic of Serbia, as the claimant, submitted an application to the Serbian
Arbitration regarding awarding of the fine in the amount of EUR 68 347 168 from
AB ALT investicijos and United Nordic Beverages AB due to the violation of the
24 July 2007 the agreement on purchase and sale of the shares in the public
company Beogradska industrija piva (BIP) signed by the Share Fund of the
Republic of Serbia and the Privatisation Agency of the Republic of Serbia, of
the one part, and the public company ALITA (currently AB ALT investicijos) and
United Nordic Beverages AB, acting as a consortium, of the other part. 
On receipt of such claim which the Company will be unable to satisfy and in
view of the entire existing situation, the Company informs that there is a real
threat that the Company will be unable further to meet its obligations to the
creditors. In consideration of this fact, the Company in the near future
intends to analyse the current situation in the Company, including the
necessity to apply to the court for institution of bankruptcy proceedings
against the Company. 
For any further information please contact General Director Vytautas
Junevičius, tel. (+370  315) 57243. 

Vytautas Junevičius,
General Director  +370 315 57243