Linas Agro Group AB - Notification on material event

SEB bank issued a LTL 16.4 million loan for the expansion of Linas Agro Grūdų centras

Panevezys, Lithuania, 2011-04-06 08:00 CEST (GLOBE NEWSWIRE) -- SEB bank
granted a loan of LTL 16.4 million to one of AB Linas Agro Group companies,
limited partnership UAB Linas Agro Grūdų centras KŪB. The company provides
grain cleaning, drying and storage services. The loan will be used for
expansion of the existing grain storage capacity and construction of two new
storages. The project is expected to be finished by 2012, its total value is
LTL 20 million. 

“We have noticed recently that the companies started planning their business
expansion and preparing investment projects more intensively. This is the
result of growing export and economic and market stabilization in Lithuania.
Positive changes are especially noticeable in agricultural production market
where Linas Agro Group has firmly established its position. We see obvious
economic benefits in financing the group's grain storage facilities - jobs will
be created in the regions, more grains will be processed with modern equipment,
which will ensure better quality”, said Aivaras Čičelis, Head of Corporate
Banking Division and Vice President of SEB Bankas AB. 

According to Andrius Pranckevičius, Deputy Managing Director of AB Linas Agro
Group, the expansion of grain storages is intentionally planned in the regions
that lack modern grain processing facilities for successful business
development of the group's companies. “As the demand for grain cleaning, drying
and storage services is growing in Lithuania, we have to purchase part of these
services from other companies. Cooperation with long-term financial partner SEB
bank will allow us to increase the capacity of our own grain storages by 30%
and strengthen the position of the group's companies in the regions. Expansion
of grain processing capacities is part of our investment programme presented to
investors a year ago”, said Andrius Pranckevičius. 

Expansion of grain storage capacity in Vilkaviškis by 9 thousand tons will
increase their grain processing and storing capacity up to 34 thousand tons.
After the construction of two more storages in Pasvalys and Šakiai districts
with total capacity of 16 thousand tons, the overall capacity of storages owned
by Linas Agro Grūdų centras will total almost 175 thousand tons of grains. The
implemented project is expected to create over 20 new jobs. 


About SEB

SEB is a leading Northern European financial group. SEB bank builds long-term
relations with its customers by providing financial consulting and other
financial services. The main activities of SEB banks in Denmark, Finland,
Norway and Germany are business and investment banking services to business
clients and institutions. SEB group operates in 20 countries worldwide with 17
thousand people employed. For more information about SEB please go to
www.sebgroup.com. 

About AB Linas Agro Group

AB Linas Agro Group is an integrated agribusiness developing parent  company
engaged in the production and trade of grains, oilseeds, feed raw materials and
agriculture-related products. It controls companies in Lithuania, Latvia,
Denmark and Ukraine. The group consists of international trading company in
Lithuania AB Linas Agro, grain storage company UAB Linas Agro Grūdų centras
KŪB, Latvian trading company SIA Linas Agro, international trading company
Rosenkrantz A/S in Denmark, Ukrainian based fertilizer production and trade
company CJ-SC UKRAGRO NPK, group of companies ŽŪB Landvesta managing
agricultural purposes land, group of four agricultural companies UAB Linas Agro
Konsultacijos and other companies. The financial year of the companies begins
on 1 July. 

Together with partners, the controlling company owns companies UAB Dotnuvos
projektai and UAB Kustodija that provide agriculture-related products and
services, and logistics company UAB Jungtinė ekspedicija. 

From 17 February 2010 AB Linas Agro Group is included in the main list of
companies of NASDAQ OMX Vilnius stock exchange. 

About UAB Linas Agro Grūdų centras KŪB

Limited partnership UAB Linas Agro Grūdų centras KŪB controls grain storages in
Kėdainiai, Kupiškis, Joniškis, Šiauliai and Vilkaviškis. The total capacity of
storages is over 148 thousand tons. All grain storages (except the one in
Šiauliai) are new and modern, built in 2002-2006. During the financial year
that started 1 July, wheat storage in Šiauliai was modernized: new grain dryer
was built, grain acceptance pit was renewed, greater part of transportation
equipment was replaced and equipment control system was automated. Improvement
and optimization of drying capacity will ensure better quality of grains and
cut energy expenses. 






         Arvydas Žilinskas
         Head of Media Relations of SEB bank
         Phone: +370 5 268 1198, +370 687 04 052
         E-mail: arvydas.zilinskas@seb.lt
         Andrius Pranckevičius, Deputy Managing Director of AB Linas Agro Group
         Phone: +370 687 71 419
         E-mail: a.pranckevicius@linasagro.lt