EKRANAS

MATERIAL EVENT



THIS YEAR EKRANAS AB INCREASED ITS MARKET SHARE IN WEST EUROPE



(Unofficial translation done at the NSEL)



Panevežys-based public company Ekranas AB, which is of the major Lithuanian

exporters, in 2002 increased its share on the Western Europe market of  small

size TV tubes  by almost 3 percent reaching 18.5 percent.



Ekranas’ segment of the Western European market of medium size TV tubes grew by

0.5 percent and amounted to 12.5 percent.



‘We succeed in slicing a greater market share, but the recent 3 years have seen

prices of products fall by almost one third. And prices  persist falling.

Naturally, this will affect the results of the company’s activity.  Destruction

of the second assembly unit in a fire resulted in a production and sales

decrease. Under these conditions the anticipated sales turnover of LTL 500

million will fall to about LTL 440 million and the profit will also be lower.

On the other hand, the decreased profit will still be sufficient for the

implementation of the investment and production expansion programme’, noted

Eimutis Žvybas, Managing Director of Ekranas.



According to Mr. Žvybas, 2002 has been a particularly tough year. Two strong

companies of the Southeastern Asia established in Great Britain (Chunghwa) and

France (Daewoo-Orion) abandoned the market. Mergers were announced by such

concerns as LG and Philips, and Toshiba and Matsushita.  Almost all global

electronics market leaders have faced disturbances this year.



Nonetheless, investments totalling annually to over LTL 100 million enabled

Ekranas to reinforce its stable development. This year the new model of a 21”

true flat screen tube was launched into production and won the2002 Product of

the Year medal awarded by the Lithuanian Industrial Producers Confederation.



‘In 2003, Ekranas will be the first European electronics company to develop and

launch into production 15” true flat screen tube, another highly popular

product. In addition, next year we will make use of our advantage over the

competitors and start producing glass components. Investments into glass

production will enable us to sell glass screens to other consumers.  This is

another entirely new business field which will boost our profitability’,

pointed out Mr. Žvybas.



The company’s plans for the next year include rebuilding of the second assembly

unit, which was burnt down, and finalising installation of the new Hitachi

assembly line.

Restructuring of the company’s management and reduction of the production costs

are also among the goals for the next year.





Angelija Zokaitienė

Head of the Investor and Public Relations Department

(370 45) 50 67 72