Utenos Trikotazas AB - Notification on material event

The securities commission of the Republic of Lithuania decision

The securities commission of the Republic of Lithuania decision concerning the
law infringement case No. 12K - 35. 

The securities commission of the Republic of Lithuania verified AB “Utenos
trikotažas” consolidated and company financial statements for the year 2008. It
was determined, that AB “Utenos trikotažas” consolidated and company financial
statements didn't comply with the paragraph 60 of the 1 IAS “Presentation of
Financial Statements”, paragraph 9 of the 36 IAS “Impairment of Assets”  and
paragraph 63 of the 39 IAS “Financial Instruments: Recognition and
Measurement”. 

On December 31st, 2008 the company and the group did not comply with the
covenants established in the agreements with the financial institutions and as
a result the financial institutions had a right to recall long term loans and
leasing before the term. Although the financial institutions hadn't  used this
right and further loan and leasing extension agreements had been reached at the
end of 2009 and the beginning 2010, according to the 60 of the 1 IAS
“Presentation of Financial Statements” such long term liabilities has to be
reported as short term liabilities. As such the company and the group short
term liabilities for the 31th of December 2008 should be increased by 20.480
thousand LTL and LTL 24.027 thousand LTL respectively and the long term
liabilities should be decreased by the same amounts. 

The company did not evaluate the company and the group trade and other
receivables with residual amounts of 12.401 thousand LTL and 536 thousand LTL
respectively according to the present value of the discounted future cash
flows, and the non current material assets currently not in use with the
residual value of 1.585 thousand LTL according to the recoverable amount, as it
is required according to the paragraph 9 of the 36 IAS “Impairment of Assets”
and paragraph 63 of the 39 IAS “Financial Instruments: Recognition and
Measurement”. The result of the evaluation will have an impact on the values of
the company and the group current assets (trade and other receivables) and net
profit, as well as on the value of the group noncurrent assets. 

The company financial statements and the group financial statements for the
year 2008 will be corrected retrospectively and announced once with the annual
consolidated financial statements for the year 2009 till the 30th of April
2010. 


The General Manager of AB “UTENOS TRIKOTAŽAS“	Nerijus Vilūnas 
(telephone 8 389 51445)