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Current report:

Confidential information

Report number: 49/2005 day: 2005-11-28

The management of Barlinek S.A. hereby announces that on November 25th 2005 it was informed by the dependent body Barlinek Inwestycje ltd of a change in the licence for conducting business within the Kostrzyńsko-Słubicka Special Economic Zone’s Barlinek Sub-zone.

The change in the licence is in connection with the expansion of the Kostrzyńsko-Słubicka Special Economic Zone’s Barlinek Sub-zone by an additional 19.3 ha of land, and an increase in the expenditure limit within the Zone to a sum of over 80m EUR (previously 40m EUR).
Barlinek Inwestycje has investments planned linked to veneer production, a dryer unit, a log sorting plant, machinery and equipment for producing pellet and investment in floorboard manufacture for within the expanded Economic Zone.
As a result of these investments, the production capacity of Barlinek Inwestycje ltd will grow in 2006 to:

• around 13m sq. metres of veneer
• 6m sq. metres of floorboards
• 60,000 tons of pellet.

These quantities apply to production capacity per calendar year.