Zemaitijos Pienas AB - Notification on material event

On the threat to Telšiai town and Žemaitijos Pienas AB

Telšiai, Lithuania, 2014-05-12 09:35 CEST (GLOBE NEWSWIRE) -- 

12/05/2014



                      Hereby we inform that four companies: Europe Eggs KB,
Telšių Paukščiai KB, Baltic Egg Producion KB, and Stanelių Grūdai KB intend to
build a poultry farm at the distance of 800 m to Žemaitijos Pienas AB and close
to the residential area (town) with 800,000 laying hens, which amounts to more
than 5315.5 LU (livestock units) and potentially a progeny of additional
400,000 hens (according to the global best practice). 

                      Hereby we note that such large poultry farm would pose a
major threat for Žemaitijos Pienas AB and increase the likelihood of company
bankruptcy due to possible outbreaks of avian diseases and applicable
quarantine measures in the radius of 3 km (restriction of movement) and also
due to the hygiene requirements for dairy products applicable in many countries
in terms of the proximity of a poultry farm and Žemaitijos Pienas AB, which may
result in the refusal to buy the food products produced by Žemaitijos Pienas
AB. 






         Gintaras Keliauskas
         Lawyer
         + 370 444 22208