Latvia's Grigiskes reduces operations to two business units including paper and paper products, corrugated cardboard and related products following transfer of its wood fiber board activities to Baltwood subsidiary

VILNIUS, Lithuania , January 9, 2012 (press release) – The GRIGISKES AB Group reached the goals of 2011. According to unaudited data over the twelve months of 2011 the sales turnover of the Group which consists of the production company GRIGISKES AB, Baltwood UAB, Klaipedos kartonas AB, Mena Pak OAO and company engaged in the waste paper business of Klaipeda recycling UAB reached LTL 308 Mio. (EUR 89.2 Mio.) which is by LTL 8 Mio. (EUR 2.3 Mio.) or 2.7% higher than proclaimed forecasted turnover for 2011.

Over the twelve months of 2011 the turnover of GRIGISKES AB outmeasured LTL 159 Mio. (EUR 64 Mio.) and was by LTL 14 Mio. (EUR 4.1 Mio.) or 9.7% higher than proclaimed forecasted turnover for 2011.

On January 9, 2012 the Board meeting approved a budget for the year 2012.

It is planned that The Group which consists of companies GRIGISKES AB, Baltwood UAB, Klaipedos kartonas AB, Klaipeda Recycling UAB and Mena Pak OAO in the year 2012 will reach a turnover of LTL 322 Mio. (EUR 93.3 Mio), which is LTL 22 Mio (EUR 6.4 Mio) or 7.3% over the turnover of 2011. The Group’s profit before taxes will reach LTL 15 Mio (EUR 4.3 Mio) and will be LTL 3 Mio (EUR 0.9 Mio) or 25% higher than it is expected for the year 2011.

It is also planned that GRIGISKES AB in the year 2012 will reach a turnover of LTL 117 Mio (EUR 33.9 Mio) and will be less by LTL 42 Mio (EUR 12.2 Mio) than not audited sales of the year 2011 are. The company will earn profit before taxes of LTL 4.6 Mio (EUR 1.3 Mio) which will be by LTL 0.2 Mio (EUR 0.1 Mio) less than it is expected for the year 2011.

In planning the activities for the year 2012 among the other factors the Company has evaluated the impact of on December 2, 2011 disclosed and on December 31, 2011 implemented transference of a part of activities (wood fiber board manufacture) to a subsidiary Baltwood UAB. Up to 31.12.2011 GRIGISKES AB had three main operating business units – reportable segments: „Paper and paper products“, „Hardboard and hardboard products“ and also „Corrugated cardboard and related products“ and since the year 2012 company will have two business units – reportable segments: „Paper and paper products“ and „Corrugated cardboard and related products“. Namely the mentioned transference has led to the reduction of forecasted turnover by 26.4 percent and profit before taxes by 4.2 percent for the year 2012 compared to the forecasted results of the year 2011.

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