Snaige AB - Notification on material event

Snaigė AB adjusted forecast for 2008

The consolidated sales revenues of  “Snaigė” AB in 2008 are estimated to be LTL
359 million (EUR 104 million). Company expects to incur the net 
loss of LTL 15 million (EUR 4.3 million). 
According to the CEO of “Snaigė” AB Gediminas Ceika, the main reason for the
Company being unable to achieve earlier sales forecasts is the decrease in
demand in several strategic markets, caused by the global economic slowdown. 
“During the first half of the year, we and our clients felt the change in
consumer behavior: in the time of rising inflation and economic instability
consumers often postpone the purchase of large appliances to better times.
Situation has not improved even in summer, the high selling season of
refrigerators” - G. Ceika said. 
Company estimates a loss not only due to decline in sales but also due to
increase in raw material costs and expensive loans used to finance working
capital. Company also experienced losses due to fluctuating dollar exchange
rates. This loss was generated from Kaliningrad factory in Russia controled by
“Snaigė“ AB, where there are no financial instruments to insure against the
losses from currency fluctuations. 

Gediminas Ceika
Managing Director
+370 315 56206