EKRANAS

MATERIAL EVENT



ANNOUNCEMENT MADE BY EKRANAS AB



(Unofficial translation done at the NSEL)



The fire at the second assembling shop of Ekranas AB, which broke out

on 3 October, became the extraordinary event not only for the company but also

had a considerable resonance in the mass media. We do understand such attention.



Ekranas AB is one of the most strategically important Lithuanian companies

having successfully penetrated into the world market. The company’s export to

Western countries accounts for 4% of the total export of Lithuania to the West.

Besides, production of Ekranas AB makes almost 40% of production of Panevezys

town. The factory takes one fourth of the industry in Panevezys district.

Together with its subsidiaries, the company employs over 5,000 people, with

the average salary 1.5 times higher than that of the country.



Every year, the company pays LTL60 million to the budget of Lithuania and

Panevezys.



Ekranas AB is a constantly investing company which has implemented the most

difficult projects and which is highly valued by its partners in Japan, USA,

Italy, France, Germany, and from other countries. The company’s workers and

managers are high skilled. Thanks to their work the company has undergone

tremendous changes over the last decade.



Ekranas AB is an active sponsor of various sports and cultural events held not

only in Panevezys, but also throughout Lithuania. We care about the future of

Lithuania and the town, therefore, every year we allot LTL 2 million for

philanthropic activity. Organisations of sport, culture and art, education,

heath care as well as many other budgetary organisations received financial

assistance from the company.



We are still waiting for the conclusions of the special commission and are

acting according to the generally accepted principles of business ethics.

As we have announced before, the second assembling line will be put back into

operation on 22-23 October, i.e. the company will work at its full capacity.



Experts from Zurich Draudimas evaluated the state of buildings and equipment.

Meetings of work groups are scheduled for the following week regarding

determination of the losses incurred. The insurance company Zurich Draudimas

has paid over LTL 1 million to carry out treatment works. Public tenders are

being placed to carry out designing and construction works. The company is

operating at its usual rhythm, without wasting time for unnecessary

explanations.



However, recently there were reportages in mass media that, in our opinion,

tendentiously interpreted the circumstances before the experts have announced

their official conclusions.

We think somebody is trying to damage our good reputation in such a way by

forming a certain opinion of the society.



Mass media is making a huge influence on the formation of the business

environment. The town of Panevezys has already felt it, which was once put on

the map only as a criminal city. Such an image, that is so difficult to get rid

of, hindered the creation of the welfare of Panevezys inhabitants.



Therefore, in our opinion, mass media has always to be quite responsible and

correct, especially, when the information is related to the welfare of many

people and interests of the country’s economy.



It is especially difficult to understand that, to our mind, improper

information was broadcasted via the national Lithuanian broadcaster, which is

maintained from the taxpayers’ money.



Without doubt, no reportages can stop the progress of Ekranas AB and

implementation of its foreseen projects. However, such reportages hinder the

creation of the business environment. We would like to draw attention of the

members of other business community to this by suspending any financial support

to the town community organisations.



Yours Faithfully



Eimutis Zvybas

Chairman of the Management Board, Director General





Angelija Zokaitiene

Head of the Investor and Public Relations Division

+370 (45) 50 67 72