AAA

Current report:

Confidential Information

Report number: 51/2005 day: 2005-12-23

The management of Barlinek S.A. hereby makes public information regarding the choice of country where the construction of a new floorboard factory is to take place. This investment will be financed partly from funds raised through a public issue of J series shares. The country in which this new investment will be undertaken is Ukraine.

The Company is currently in the closing phase of acquiring the administrative licences for construction of the board factory, which will be located in Vinnitsa in Ukraine. In the event of these licences being acquired, the Company plans to commence construction in the 3rd quarter of 2006 of a factory with production capacity of 2m sq metres. The planned investment cycle is for a period of 12 to 15 months.