AAA

Current report:

New investment in Barlinek

Report number: 64/2006 day: 2006-11-10

Legal basis

Art. 56 par. 1 pt 2 of the Bidding (current and periodic information) Act

Contents of the report:

The management of Barlinek S.A. hereby announces that Barlinek Inwestycje ltd (a dependent body of Barlinek S.A.) intends in 2007 to realise the investment of the construction of a new ecological fuel production section. The planned final cost of the investment is around 28m PLN. The target production capacity for the new section will be around 48,000 tons of pellet per annum.

Initiation of the production is planned for the 3rd quarter of 2007.

Barlinek Inwestycje ltd is currently a significant producer of this ecological fuel, which is in demand both on the Polish market and abroad. Once the investment is completed, the Company’s annual production capacities will rise from the current 50,000 tons to almost 100,000 tons of pellet.

Realising this investment will allow 100% of all wood waste products to be exploited and will ensure additional net profits of 12m PLN per year.