Alpcot Agro AB Half Year Report 2010

The interim report for Alpcot Agro AB (publ) for the first six months of 2010 has been approved by the Board of Directors and is available on the Company’s website www.alpcotagro.com. The most important events and figures for the period are highlighted below. Numbers within brackets refer to the period 1 January – 30 June 2009 unless otherwise stated.

Operational

• At the time of writing, Alpcot Agro is in the process of harvesting about 66,400 hectares of crops for sale in Russia and 5,500 hectares in Ukraine.
• Due to the winter frosts and the extraordinary summer drought in the Russian inland, the Group lost about 10,000 hectares of crops during the winter and an additional 6,000 hectares during the summer. Most of the crops lost were insured and the Group is in the process of receiving the insurance compensation. In addition, yields on the remaining fields are generally lower than last year. 
• In a series of acquisitions during the first half of 2010, Alpcot Agro gained control of approximately 15,000 hectares of farmland in the Kaliningrad region in Russia.
• The land in ownership in Russia has increased to about 107,000 hectares, of which 43,700 is directly registered land. The total amount of land under the Group’s control increased to about 190,000 hectares in Russia and 9,800 hectares in Ukraine.

Financial

• Total revenue and gains for the period ended 30 June 2010 amounted to SEK 208 (216) million, of which SEK 119 (127) million was a gain from changes in fair value of biological assets.
• During the period operating loss, excluding gains in negative goodwill, amounted to SEK -85 (-53) million and net loss for the period amounted to SEK -24 (-48) million.
• Earnings per share amounted to SEK -0.70 (-1.38). Equity per share as of 30 June 2010 was SEK 24.27 (37.74).
• The preferential rights issue was successfully completed in January 2010 and raised SEK 235 million before issue costs.

Important event after the end of the period

• In July 2010, the Group signed a framework agreement to acquire assets in western Ukraine, including a grain silo under construction designed for 50,000 tonnes, machinery and equipment and lease agreements for up to 7,500 hectares of farmland in the Ivano-Frankivsk region.

Stockholm, 31 August 2010
Alpcot Agro AB (publ)
The Board of Directors

For further information please contact:
Björn Lindström, Managing director +44 (0) 79798 55556

Definitions of land in control and land in ownership:

Land in control is registered land and land where a subsidiary of the company, either itself or in the name of agents, has registered a lease agreement or is in the process of registering a lease agreement with local authorities.

Land in ownership is registered land and the indirect ownership of land within the Russian Pai system. The Pais can be registered either in the company's subsidiary's name or in the name of an agent acquiring Pais on behalf of the company's subsidiary within the framework of legally binding contracts, or is in the process of entry into the land register with local authorities.

About Alpcot Agro AB (publ)
Alpcot Agro is a Swedish limited liability company incorporated in 2006. The Company's objective is to generate an attractive total return on invested capital by acquiring and farming agricultural land in Russia and in other CIS member states. The shares in Alpcot Agro are listed on First North under the ticker ALPA and the Company’s Certified Adviser is Remium. Additional information is available on www.alpcotagro.com.