In  London  on  the  November 27, 1998 was signed 8 year long agreement

between  European  Bank  for  Reconstruction  and  Development  and JSC

"Gutta"  for  USD  14  million.  Agreement  foresees  part of the loans

convertion  into  Gutta  shares  therefore  EBRD will get involved into

Board of shareholders.

This  EBRD  step will help the development and growth of private sector

in Baltic region.

Completion  of  the  factories  in  Moscow and Kiev will allow to start

local  production  thus  providing  expansion  of  their  markets  with

significant growth of potential consumption.