AAA

Current report:

Confidential information

Report number: 33/2007 day: 2007-11-29

Legal basis

Art. 56 par. 1 pt 1 of the Bidding Act – confidential information

Contents of the report:

The management of Barlinek S.A. based in Kielce hereby announces that on November 29th 2007 it signed a letter of intent. The letter of intent expresses Barlinek S.A.’s wish to acquire 99.876% of the shares in Diana Forest SA, based in Bacau, Romania. Diana Forest SA is one of the largest enterprises in Romania specialising in wood production, including the manufacture of high quality wooden floors. Diana Forest SA’s yields for 2006 were at a level of 23m EUR.

As a result of the aforementioned letter of intent, the Seller will undertake no competitive negotiations in the area subject to the negotiations with Barlinek S.A., until December 21st 2007.

Finalisation of the transaction is dependent on the fulfilment of a series of conditions, including:

1. A positive due diligence result,
2. Receiving the approval of the appropriate Antimonopoly Bureaus.

For the good of the negotiations under way, information about the selling party and initial financial conditions (including the value of the transaction) has been delayed on the basis of art. 57 of the Public Bidding Act, until the day a Sale Contract is signed. This delay is justified by the ongoing purchasing procedures and the need to establish a final purchase price, and revealing this information before the purchase of the aforementioned party is finalised could weaken Barlinek S.A.’s competitive position on the market, in particular having a negative influence on the course and outcome of the purchase procedure.

Legal basis:

Art. 56 par. 1 pt 1 of the Act of July 29th 2005 regarding Public Bidding and Introducing Financial Instruments into Organised Systems of Circulation, and Public Companies