KLAIPEDOS BALDAI

MATERIAL EVENT



DECISIONS ADOPTED AT THE GENERAL SHAREHOLDERS' MEETING



At the extraordinary general shareholders' meeting, held on 19 November 2001,

it was decided to:

1) approve the long-term investment plan of the Management Board of AB

Klaipedos Baldai regarding construction of a new furniture production shop by

allowing to start projection work. The new shop will be built in the territory

of the company. Following the construction of the new shop, the company's

capacity would augment by 85%. Investment into the new shop would return in

six years, provided production capacities are fully employed.

2) approve the decision of the Management Board to take a long term loan of

EUR 2,544,000 for a period of 5 years from AB Vilniaus Bankas, EUR 750,000 of

which will be used to acquire equipment for calibration and edge-veneering and

EUR 1,794,000 will be used to acquire financial assets.

It was decided to pledge the following for the loan:

Real property - buildings 1B2p, 12B4p, 5F1p, 6F1p, 17F1p, 8F1p, 18P1p, 22P2p,

7H2p, 34F1p, 23H1p, 2H2p, and 16H1p for the total amount of LTL 8,000,000;

equipment for calibration and edge-veneering to be acquired, worth LTL

3,000,000;

movable property, equipment (at 21 Joniskes St. in Klaipeda) for the total

amount of LTL 4,000,000;

short-term assets - current and future pecuniary means in all accounts with AB

Vilniaus Bankas for the amount not less than 5,000,000;

short-term assets - stocks of goods for the amount not less than LTL 4,000,000.





Dalius Jarmalavičius

Director of Economy

8-26-313958