AAA

Current report:

Confidential information

Report number: 30/2007 day: 2007-10-03

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 October 3rd 2007 the dependent company Barlinek RUS purchased 33.6 ha of land near the town of Cherepovtse in the Russian Federation for the purposes of constructing a multi-layered board factory. The factory, with a production capacity of around 2m m2 of floorboard per annum, is expected to become operational in spring of 2009. The cost of constructing the "green field" type multi-layered floorboard manufacturing plant and accompanying investments is estimated at around 260m PLN. In addition, as part of this investment a slat manufacturing department will be built with an output of 4m running metres of slats per annum, and a pellet-making plant with a manufacturing potential of 36,000 tons of pellet per annum.

The Company also plans to construct a large manufacturing plant for wood processing on the site. Barlinek S.A. will announce the details of this investment soon.

The investments in the Russian Federation are the next stage in the realisation of the Barlinek Group’s strategy aimed at achieving a stable position among the largest suppliers of multi-layered wooden floors in the world, by increasing production capacity and constantly expanding the selection of products. As well as three-layered floorboards, the Barlinek Group also produces top quality natural veneers from both domestic and exotic tree species, and ecological fuel made from post-production wood waste, known as pellet.