GRIGISKES

MATERIAL EVENT



THE COMPANY’S PERFORMANCE IN TEN MONTHS AND FUTURE PROSPECTS



On 19 November 2001, AB Grigiskes announced its results of activity in 10

months of 2001 and future prospects.



The total turnover of AB Grigiskes, one of the largest producer of hardboard

and hygienic paper, in ten months came to LTL 51.7 million, which is by 2%

more than in the corresponding period last year. In 2000, the company’s sales

volumes during January – October made up LTL 50.5 million.



In October, the total turnover of AB Grigiskes advanced by 33% as compared to

the same period of the previous year. In October last year, the company’s

turnover equalled LTL 4.69 million, while the current year turnover of October

stood at LTL 6.22 million.



During ten months of the year, the unaudited net profit of AB Grigiskes

amounted to LTL 985thou. The profit earned only in October reached LTL

326thou. As compared to September of this year, the company’s net profit

showed an increase of 33% (from LTL 218thou to LTL 326thou).



Last year, during ten months the company suffered loss of LTL 1.76 million,

the loss incurred in October 2000 accounts for LTL 574thou.



“Reorganisation of production and adjustment of sales flows contributed to

good results and to the profit increase. We will finish this year successfully,

without suffering any loss”, says G. Pangonis, director general of AB

Grigiskes.



According to G. Pangonis, the company is currently investing into management

modernisation. At present, a business management programme Navision Axapta,

which will cover all processes and divisions of the company, is being

implemented at the producer of hardboard and hygienic paper. AB Grigiskes

allotted LTL 0.5 million for the implementation of the business management

programme.



“With investments into the management modernisation, we seek to increase the

company’s efficiency even more. The business management programme that will

start operating from the beginning of the coming year will allow to operatively

manage processes and conduct extensive analysis of the company’s performance,”

says G. Pangonis.





G. Pangonis

Director General

(22) 33 39 04