Gubernija AB

Company event



The result of operation for 9 months of 2004



Over the period of 9 months of 2004, Gubernija AB incurred losses in the

amount of LTL 1 568 550. The company's EBITDA (earnings before interest,

tax, depreciation and amortization) amounted to LTL 1.91 million.



The main reason for the loss-making activity is by LTL 5.8 million lower

sales of production as compared with the corresponding period of 2003 due to

an unwelcoming cold summer and the company's being not involved in the war

of prices with other producers of beer.



The financial results have been influenced by the write-off of illiquid

assets of the company in the amount of LTL 172.7 thousand in Q3 by

Matininkai UAB carrying out asset valuation of the company, the results of

which are going to be announced in the near future. An unfavorable change of

the exchange rate brought a loss of LTL 337.8 thousand. Expenditure on

marketing as compared to the corresponding period of 2003 grew by LTL 259.6

thousand.



Irrespective of the above, the operating expenditure of Gubernija AB over 9

months of 2004 dropped by 4.3%, the cost price of the total produce reduced

by 9.9, the cost price of beer fell down by 6.7%.





Violeta Dunauskienė

Communication Director

(+370 41) 59 19 15