Ekranas AB

Company event



AB EKRANAS Board approved production, investments and new products development

programme for the year 2005



The announcement of EKRANAS Board by Mr. Aydin Giz Vice –chairman of the Board,

representative of majority foreign shareholders.



The Board analyzed the situation on TV global market and evaluated EKRANAS

position as quite favorable, compare to other worldwide and European colour

picture tube producers. The company succeeded record sales at mill. 4.6 CPT in

2004 and achieved the preliminary turnover at mill. 470.4 LTL.



Generally, the company had successful sales within the first and the second

quarters, but the very important fluctuation and depreciation of USD against

Euro and decreasing of prices in global market, the increasing of unemployment

in EU, the temporary timidity in consumer market had a negative impact on

EKRANAS Annual results (in quarters third and fourth).



In any case, EKRANAS maintained its position as the biggest CPT producer of

small sizes in Europe and the second leader in medium sizes.



The Board estimated that the negative impact on worldwide economy would be

continuing in quarter first and second of 2005. Also the Board expects a market

recover and important market growing in quarter third and especially in quarter

fourth due to IFA (International Consumer Electronics Fair in Berlin) impact on

the market and worldwide shortage of the glass.



The Board based on analysis and research approved the goals for the year 2005:

-  to produce and sell at least mill. 5.3 CPT or 15 % increase comparing with

the year 2004;

-  to invest up to mill. 20 LTL;

-  to settle the cost reduction and efficient management programme;

-  to follow the recommendation and majority decision of EDIA (European Display

Industry Association) members (representing CPT producers and CPT part

producers) to initiate and start an antidumping procedure in European Union

Trade Commission against countries which make unfair competition and dumping

prices in EU market;

-  to continue financial support for EKRANAS football team;

-  to continue financial support for Youth creativity programme.



The Board also decided:

-  to convoke the General Meeting of Shareholders on 19th of April 2005;

-  to suggest to the General Meeting of Shareholders to pay in dividends mill.

0.6 LTL for the year 2004;

-  to suggest to the General Meeting of Shareholders to issue new shares from

company funds (retained earnings) mill. 100 LTL and to distribute additional

free shares for shareholders.



With respect to company’s shareholders and to prove transparent management

EKRANAS Board makes an announcement of forecasted looses in 2005 up to mill. 10

LTL. Financial numbers were prognosed in the business and budgeting plan and

based on assumptions of actual state in the global market.



Nevertheless, the company expects changes in the third and fourth quarters 2005

and important profit in 2006 due to new products and price increase.



As new development and future grow of EKRANAS, the company will invest

significant amount on development of a new product – Slim Type CPT Technology

and to start mass production in 2006.



The Board also decided within six months to make feasibility study for LCD

assembly in EKRANAS.



The foreign investors of EKRANAS is very concerned from the non active support

of the local and EU authorities to export oriented foreign capital companies and

wait more efficient support.





On behalf of EKRANAS Board

Aydin Giz

Vice-Chairman of the Board





Angelija Zokaitienė

Director of UAB  REKLAMOS POREIKIS

(+370 45) 43 66 01, (+370 699) 88 330