Linas Agro Group AB - Notification on material event

SC Klaipėda Stevedoring Company and Linas Agro Group, AB to jointly expand KLASCO Bulk grain terminal

SC Klaipėda Stevedoring Company (KLASCO) and Linas Agro, AB owned by the stock
company Linas Agro Group has signed the long-term cooperation agreement on the
expansion of the Bulk grain terminal.  This step will enable to increase grain
handling in Klaipeda Seaport by approximately 40 per cent. 

The agreement stipulates that Linas Agro, AB takes part in a partial financing
of the expansion of the Bulk grain terminal and has the exceptional right to
use silos warehouses of 40 thousand cubic meters and handle grain through the
terminal for five years. 

At the moment, the Bulk grain terminal situated on the territory rented by
KLASCO beside the quay No.4 can store up to 60 thousand tons of grain. It will
be expanded by building six additional silos warehouses of 60 thousand cubic
meters space, the second rail cars discharging station and grain weighting
equipment. After the expansion the terminal is expected to store 105 thousand
tons of grain at once. The expansion works of the Bulk grain terminal are
planned be finished in the autumn of 2011. 

„The expansion of the Bulk grain terminal is an extremely important event to
the entire Klaipeda Seaport. Until now approximately a half of Lithuanian grain
were exported through Latvia's seaports. After the construction of new grain
warehouses, Klaipeda Seaport will be able to handle the entire Lithuanian
harvest,” KLASCO Director General Audrius Paužа says. 

According to him, the increase of the terminal's capacities is a part of KLASCO
investment programme. In two years about LTL 50 million will be invested into
the expansion of company's terminals. The possibility to handle various grain
volumes and load both smaller ships of several thousand tons and “Panamax” type
ships is of extreme importance. 

“We have decided to invest into the expansion of KLASCO Bulk grain terminal
because grain export is one of our strategic activities. Every year we export
over 700 thousand tons of agricultural products through the Baltic seaports,
and at the peak of the season there is not enough capacities to handle all
Lithuanian grain in Klaipeda Seaport. Therefore, last year and this year we
loaded two thirds of our production in Latvia's seaports,” Linas Agro Group, AB
Board Chairman Darius Zubas says. 

According to him, tendencies show that Lithuanian grain export will grow, and
the need for storage spaces will increase, too; thus, participation in the
expansion of KLASCO Bulk grain terminal is a strategic decision of Linas Agro
Group, AB. “Although we sell a significant part of our products in Lithuania,
we are among the leading Lithuanian grain exporters. We are constantly looking
for the most efficient grain logistics solutions as well as ways to increase
flows of sold goods since we have to be competitive on the market and offer the
most attractive terms to our client farmers and foreign buyers. In Lithuania
and Latvia there are only two deep-sea quays and possibilities to load
“Panamax” type ships which can carry up to 70 thousand tons of cargo. Since
Lithuania raises twice as much grain as Latvia we have decided to invest into
Lithuanian company's terminal. KLASCO is one of the strongest companies in the
Baltic region, we have been working with it for many years, and we are
satisfied with our cooperation,” D. Zubas says. 


There will be a tender announced for the building and equipment of the Bulk
grain terminal. Therefore, the total investments into the terminal's expansion
will be clear after the tender. The construction works are expected to start
this summer. 

About KLASCO

In terms of turnover SC Klaipėda Stevedoring Company (KLASCO) is the largest
Klaipeda Seaport's stevedoring company which handles the biggest number of
various types of cargo. It has over one third of port's service market share.
The company runs the general cargo, dry as well as liquid fertiliser, bulk
grain and ferry (Ro-Ro) terminals, and it is the largest port unit in terms of
the area of warehousing and storage facilities, which exceed 50 thousand cubic
metres. The company also provides cargo transportation by truck and logistics
services “from door to door”. In 2009 KLASCO earned LTL 115.63 million income
from its core activities. This year the company plans and will start expansion
of the bulk grain and dry fertilisers terminals, also, it plans building new
passenger and cargo terminals. 

About Linas Agro Group, AB

Linas Agro Group, AB is an integrated agribusiness company engaged in
international agricultural business, production and trade in agricultural
produce and raw materials. It controls companies in Lithuania, Latvia and
Denmark. The Group consists of the following companies: Linas Agro, AB, a
Lithuanian company engaged in international trade in agricultural plant
produce; Linas Agro, UAB controlling grain storages; Grūdų centras, KŪB
(controlling grain storages in Kėdainiai, Kupiškis, Joniškis, Šiauliai and
Vilkaviškis), grain trade company in Latvia - Linas Agro, SIA; international
trade company in Denmark - Rosenkrantz A/S; Landvesta, ŽŪB, a group of
companies controlling agricultural land; and Linas Agro Konsultacijos, UAB
controlling agricultural companies. Financial year of the companies starts on
the 1st of July. According to the data of the first half of the financial year
the income stood at LTL 554,35 million while the net profit was LTL 25,7
million,  also, 59% of income was gained from the trade of grain as well as
oilseeds. In July-December 2009 the company sold 818 thousand tons of products
which is by 6% more as compared to 2008. As of February 17, 2010 Linas Agro
Group, AB is listed on NASDAQ OMX Vilnius stock exchange. 

More information:


Edgaras Valeckas
SC Klaipėda Stevedoring Company 
Spokesperson
Ph. +370 620 63042
Email edgaras.valeckas@klasco.lt


Arūnas Jarmolavičius
Linas Agro, AB Project Director
Linas Agro Group, AB Board Member
Tel. 8 698 27855
Email a.jarmolavicius@linasagro.lt