Co-financing approved by the Rural Support Service

9/3/2012 8:56 AM EST

Grobina
Company Announcement

Co-financing approved by the Rural Support Service

Regarding the Co-financing approved by the Rural Support Service for
implementation of the project: ‘'Construction of a new fur animal farm'' 

Dubeni, 2012-09-03 14:56 CEST (GLOBE NEWSWIRE) -- According to Article 59, part
(1) and (2), point 15. and 17 of the Law of the Financial Instruments Market 
the Board of JSC ‘’Grobina’’ informs that the resolution No. 04.3/2-11/1971,
dated 28.08.2012., from the Rural Support Service was received today, which
informs that the co-financing of LVL 1 446 793 for JSC ‘’Grobina’’ project
‘’Construction of a new fur animal farm’’ has been approved. 

            The objective of the above project is to modernize the company, by
constructing a modern and a disease-free fully automatic (approximately 24
employees will be required to ensure a full operation of the farm) fur animal
(mink) farm for a herd of 16 500 breeding minks and which will be situated at a
distance of 20 km from the present mink farm – i.e. at Pavilosta district,
Vergale municipality, ‘’Celmalnieki’’ and will be built on the plot belonging
to the Council of Pavilosta, which has concluded with JSC ‘’Grobina’’ an
appropriate 12-year Land Lease Contract with building rights. 

            The total costs for the new farm project is planned to be LVL 4 160
000, which includes the costs of LVL 2 800 000 for construction and fixed
installations; the costs of LVL 200 000 for technical equipment and facilities
and the costs of LVL 1 160 000 for the purchase of the new herd of breeding
minks. Since the Rural Support Service has approved the co-financing for only
LVL 1 446 793, JSC ‘’Grobina’’ is currently actively working and planning to
receive a support from a credit institution which will cover the rest of the
costs for the project. 

            The implementation measures for the project is planned to start in
December, 2012, and finish in January, 2014. 

            After the implementation of the above project JSC ‘’Grobina’’ will
increase the overall production, by breeding more than 200 000 animals, which
is planned to increase the current turnover of LVL 2,43 million in 2011 to LVL
6,25 million in 2015. 

            The management of JSC ‘’Grobina’’ believes that the construction of
the new, modern farm will increase the profitability for more than 2 times and
it will ensure for the company a stable grater profit in future. 



The Board of JSC ''Grobina''


         Mrs. Argita Jaunsleine
         Deputy Chairman of the Supervisory Board
         +371 29102585