EKRANAS

MATERIAL EVENT



REPORT OF THE BOARD OF EKRANAS AB



(Unofficial translation done at the NSEL)



The General Meeting of Ekranas of Panevėžys, the biggest producer of

electronics in Lithuania, was held on  30 April, during which the company’s

shareholders  approved the company’s financial statements for 2002 and the

profit distribution.

Last year, the company earned LTL 12.3 m. net profit. LTL 1 m., or LTL  0.03

per share, will be allocated for dividends. The remaining part will go to

investments.

Investments will be dedicated to the development of production, work

efficiency, and productivity. In May, Ekranas will be the pilot TV tubes

producer in Europe to launch production of the 15” true flat and the modified

21” tubes, and it will offer to consumers at the beginning of 2004 the new 25”

tube. It is expected that those products will help Ekranas to get established

in new segments of the market.

The shareholders of Ekranas authorised the Board to sell, transfer, lease,

pledge or use as surety long-term assets of the company with a value exceeding

1/20  of the company’s authorised capital. A new version of the Articles of

Association was approved as well.

Due to the overall crises on global markets, the effects of Iraq war, the

temporary consumption decline, and the weakening USD, the result of Ekranas’

activity in the 1st quarter of 2003 was LTL  5.9 m., however the company

increased its production volume by 11.9 percent, compared with the

corresponding period last year. In three months, Ekranas sold 955.1 thousand

tubes.

“The global tubes’ markets persist declining making losses an inevitable price

to be paid in order to retain what has already been achieved. Nonetheless,

Ekranas was practically the only company in this sector worldwide which managed

to expand its market share during the first quarter of 2003. The 12 percent

growth reinforces hope that we will not merely survive the tough period but,

more importantly, will gain more impetus than our competitors as soon as the

situation stabilises”, says Eimutis Žvybas, Chairman of Ekranas’ Board. 

The Chairman also assures that the company plans to end the current year

operating profitably and to produce 3.9 m. tubes, which would be 0.5 m. more

than last year.





Angelija Zokaitienė

Head of the Investor and Public Relations Division

(370 45) 50 67 72