KLAIPEDOS BALDAI

MATERIAL EVENT



ADOPTED DECISIONS OF A GENERAL SHAREHOLDERS’ MEETING



The general shareholders’ meeting decided to:

1. approve report of the Board for 1999;

2. approve report of the auditor;

3. approve financial statements of 1999. (Assets LTL 32,744,083. Net profit

   LTL 2,085,589);

4. approve draft appropriation of profit:

	to legal reserves			LTL 140,556;

	to reserves to be appropriated	LTL 3,830,523;

	dividends				LTL 408,316;

	other appropriation			LTL 138,184.

5. order the Board to hold a contest regarding election of an auditor and to

present for the approval of shareholders’ meeting;

6. elect the following representatives of AB Koncernas SBA members of the

Supervisory Board: R.Varanauskas, R.Sajienė, O.Nortkienė;

7. pull down or sell buildings that are not used or are of little value or to

give them as property contributions when purchasing shares;

8.1 for a EUR 500,000.00 loan, mortgage the equipment, acquired for the loan,

for the sum not exceeding LTL 2.2 million;

8.2 take a loan of USD 500,000.00 for funding of working capital and to

mortgage reserves to the bank for the sum not exceeding LTL 4 million;

8.3 take a loan of DEM 600,000.00 for acquisition of equipment and to  mortgage

 buildings, equipment, and raw materials;

8.4 extend the period of validity of the pledge agreement with the LTB,

securing buildings 10G1p and 11G1 for the USD 3.25 million loan received by AB

Koncernas SBA from the bank, until full recovery of the loan. To extend for the

same period validity of surety agreement with the LTB with regard to a share of

USD 1 million of the loan.

8.5 secure a LTL 5,000,000.00 loan of UAB Klaipėdos Baldų Prekyba with assets

of AB Klaipėdos Baldai;

9. amend paragraph 3.5 of the Articles of Association of AB Klaipėdos Baldai;

10. allot LTL 700,000.00 charity for VĮ "Kauno "Žalgirio" rėmėjas";

11. establish dividend payment procedure.





Lina Semėnaitė

Information specialist

(22) 72 18 58