PANEVöŽIO STATYBOS TRESTAS AB

Consolidated Interim Financial Statement and Consolidated Interim Report for Six Months of 2008

28 August 2008 Panev÷žys

1. Reporting period

The consolidated annual report has been prepared for six months of the year 2008 that expired on 30 June 2008.

2. Main data about the issuer

Public limited liability company Panev÷žio statybos
trestas
16 350 000 Litas
P. Puzino Str. 1, LT-35173 Panev÷žys, Lithuania
(8~45) 505 503
(8~45) 505 520
[email protected]
Public limited liability company
30 October 1993, Panev÷žys City Department
AB 9376
147732969
LT477329610
State Enterprise Centre of Registers
www.pst.lt

3. Character of the main activity of the issuer

The main area of activity of the Company and subsidiaries (Group) is designing and construction of buildings, constructions, installations and communications of various purposes both in and outside Lithuania, real estate development. In addition to the mentioned activities the company rents the premises and machinery, resells utilities and communication services.

As of 30 June 2008 the company group of Panev÷žio statybos trestas AB consists of the following companies:

Subsidiaries	Type of activities	Share controlle d (per cent)	Domicile address
Skydmedis UAB	Production of wood constructions	100	Pramon÷s g. 5, Panev÷žys Tel.: 8 45 583341
Metalo meistrai UAB	Production of metal constructions	100	Tinklų g. 7, Panev÷žys
Vekada UAB	Electrical installation activities	96	Marijonų g. 36, Panev÷žys Tel.: 8 4 5461311
Vilniaus pap÷d÷ TŪB	Construction works	69	Švitrigailos g. 8, Vilnius Tel.:8 5 2609405
Alinita UAB	Air conditioning equipment	100	Dubysos g. 31, Klaip÷da Tel.: 8 46 340363
PS Trests SIA	Construction	100	Vietalvas 5, Riga
OOO Baltlitstroij	Construction	100	Sovetskij pr. 43, Kaliningrad Tel.: 0074012350435
PST Investicijos UAB	Real estate development	67	Konstitucijos pr. 7, Vilnius Tel.:8 5 2728213
Subsidiaries of PST investicijos UAB
Ateities projektai UAB	Real estate development and sales	100	Konstitucijos pr. 7, Vilnius
Sakališk÷s UAB	Real estate development and sales	100	Konstitucijos pr. 7, Vilnius
Kauno erdv÷ UAB	Real estate development and sales	100	Konstitucijos pr. 7, Vilnius
G÷luž÷s projektai UAB	Real estate development and sales	100	Konstitucijos pr. 7, Vilnius
Verkių projektas UAB	Real estate development and sales	100	Konstitucijos pr. 7, Vilnius
Realtus UAB	Real estate development and sales	100	Konstitucijos pr.7, Vilnius
OOO ISK Baltevromarket	Construction investment company	100	Sovetskij per.43, Kaliningradas
Smiltynių kalvos UAB	Real estate development and sales	100	Konstitucijos pr.7, Vilnius

4. Contracts with intermediaries in security public turnover

On 7 February 2006 the contract No.3792 was signed with the public limited liability company NORD/LB bankas located at Basanavičiaus Str. 26 in Vilnius, this company was authorised to perform accounting of securities issued and management of personal security accounts.

5. Data of trade in the securities of the issuer at the regulated markets

The ordinary registered shares of Panev÷žio statybos trestas AB, 16 350 000 pcs. the par value of each being one Litas, have been included in the official list of the Vilnius Stock Exchange (VSE) since 13 July 2006.

Share type	Number of shares (pcs.)	Par value (Lt)	Total par value (Lt)	Emission code
Ordinary registered shares (ORS)	16 350 000	1	16 350 000	101446

6. Authorized capital of the company and its structure

As of 30 June 2008 the authorized capital of the company was 16 350 000 Lt, it was divided into 16 350 000 ordinary registered shares (hereinafter referred to as ORS), the nominal value of one share being 1.00 Lt. All shares are intangible and fully paid. The property right for the shares is

proved by the record in the stock accounts. The shares of Panev÷žio statybos trestas AB are traded in the Vilnius Stock Exchange. On 30 June 2008 the total number of the shareholders was 1617 who under the property right held or controlled more than 5 percents of the authorized capital of the company:

Name, surname of a shareholder (company name, type, headquarter address, company code)	Number of ordinary registered shares held by a shareholder under ownership right (pcs.)	Share of the authorized capital held (%)	Part of votes granted by the shares held under the ownership right (%)	Part of votes owned by the shareholder along with acting persons (%)
Panev÷žio keliai AB S. Kerbedžio g. 7, Panev÷žys, Company code: 147710353	8 138 932	49,78	49,78	---
Bank of New York as custodian or trustee for ING B One Wall Street, New York, NY 10286, USA GSP181305	1 682 023	10,29	10,29	---
Skandinaviska Enskilda Banken clients Sergels Torg 2, Stockholm, Švedija 502032-9091	1 249 559	7,64	7,64	---
Hansabank clients Liivalaia Street 8 Tallinn, Estonia Company code: 10060701	1213616	7,42	7,42	---

The Company has not purchased its own shares, any of its subsidiaries has not purchased any shares of the Company and no other person who would act in his/her own name but in the favour and using the means of the Company, has purchased any shares of the Company.

7. Information on the activity results of the issuer

Referring to the unaudited data, the group of one of the largest construction companies in the country, Panev÷žio statybos trestas (PST), was on the income of 258 mln. Litas for the first half of this year – this was lower by 8 % in comparison with the same period last year and made the before tax profit in the amount of the 13.5 mln. Litas. This is 1.6 times lower in comparison with January through September 2007 when the before tax profit amounted to 22 mln. Litas.

Group income, thousands Lt	I half of 2008	I half of 2007
Construction and installation activities	254486	261314
Real estate development	855	14005
Other sale	2578	5747
Total	257919	281066

The income of Panev÷žio statybos trestas AB for the I half of the year 2008 was as follows:

Parent company income, thousands Lt	I half of 2008	I half of 2007
Construction and installation activities	251363	258872
Other sale	784	2915
Viso	252147	261787

	GROUP					Parent company
Country	I half of 2008		I half of 2007		I half of 2008		I half of 2007
Lithuania	243474	94,40%	270148	96,12%	238134	94,4%	252664	96,5%
Russian Federation	14012	5,43%	9123	3,25%	14013	5,6%	9123	3,5%
Germany	223	0,09%	0	0,00%
Island, Norway, Sweden	210	0,08%	1795	0,64%
VISO	257919		281066		252147		261787

Income distribution on a geographical basis:

As the construction market increases, the number of employees increased significantly both in the parent company and the group during I half of the year 2008. As of 30 June 2008 the number of employees in the group of Panev÷žio statybos trestas AB amounted to 1633 employees (1518 employees as of 31 December 2007). 1353 employees worked at the company on 30 June 2007 (1275 employees as of 31 December 2007).

Employee groups	Listed number	Having university education	Having higher non-university education	Having college (middle) education	Having secondary education	Having unfinished secondary education
Managers	50	34	-	4	12	-
Specialists	341	234	12	68	26	1
Workers	1241	20	5	209	750	258

Employee groups	Average monthly salary
Managers	9712
Specialists	5067
Workers	2962

Employment agreements do not include any specific rights and obligations for employees or a part thereof.

		Group		Parent company
	I half of 2008	I half of 2007	I half of 2008	I half of 2007
Income	257919	281065	252147	261787
Cost	224628	243956	221957	237659
Gross profit	33291	37109	30190	24128
Gross profit margin (percents)	12,91	13,20	11,97	9,22
Net profit margin (percents)	4,15	6,17	5,01	4,32
Profit per share (in Litas)	0,65	1,06	0,77	0,69
Return on equity (percents) (ROE)	12,83	27,87	16,07	20,30
Return on assets or asset profitability (ROA)	3,35	6,53	5,11	5,81
Return on investments (ROI)	6,89	13,67	13,99	18,17
Current liquidity ratio	1,74	1,70	1,25	1,11
Book value per share	5,85	4,63	4,81	3,41
Share price to book value (P/BV)	1,48	3.67	1,80	4,98

The activity results of the company group of Panev÷žios statybos trestas AB and the parent company are as follows (in thousands Lt):

8. Procedure for amendment of the Articles of Association of the issuer

The Articles of Association of the company can be amended by the general meeting of the shareholders by the qualified majority of votes that cannot not less than 2/3 of all votes conferred by the shares held by the shareholders attending the meeting. The decision of the general meeting of the shareholders regarding the amendment of the Articles of Association is made in accordance with the procedure set forth in Article 27 or 30 of the Law on Companies of the Republic of Lithuania.

9. Bodies of the issuer

Referring to the Articles of Association of Panev÷žio statybos trestas AB, the management bodies of the Company are the General Meeting of the Shareholders, the Board and the Managing Director. No Supervisory Board is formed in the company.

The competence of the General Meeting of the Shareholders has no difference from the competence of the General Meeting of the Shareholders set forth by the Law on Companies.

The Board of the company consisting of five persons is elected by the General Meeting of the Shareholders for a period not longer than 4 years. At present the Board of the company consists

of four members. The procedure for election and withdrawal of a member of the Board has no difference from the procedure set forth by the Law on Companies.

The activities of the Board are managed by the Chairman of the Board. The Chairman of the Board is elected by the Board from the members of the Board.

The Board elects and removes from the office the manager of the company – the Managing Director, fixes his salary, sets other terms of the employment contract, approves his job description, gives incentives and imposes penalties.

The manager of the company is a single-person management body of the Company who organizes the current economic activities in accordance with his authority.

The Board:

REMIGIJUS JUODVIRŠIS – the Chairman of the Board. Does not participate in the capital of the Company. Participates in the activities or capital of the following companies:

NAME OF COMPANY	POSITION	NUMBER OF SHARES	CAPITAL %	VOTES %
TERTIUS UAB		704 638	80	80
PANEVöŽIO KELIAI AB	Member of the Board	531 675 including 43197 pledged to Dangų emulsija UAB	28.47	28.47
LAUKTUVöS JUMS UAB	Member of the Board	11 069	50.15	50.15
POKŠTAS UAB		261	50	50
KLOVAINIŲ SKALDA AB	Member of the Board	203 526	3.78	3.78
GELBERA UAB	Member of the Board	34	34	34
KELTECHA UAB		340	17.0	17.0
EMULTEKA UAB		14	14.0	14.0
GUSTONIŲ ŽŪT UAB	Member of the Board	18 027	49.04	49.04
SPECIALIZUOTA KOMPLEKTAVIMO VALDYBA AB		21 490	9.37	9.37
IGNALINOS STATYBA AB	Member of the Board	91 351	37.93	37.93
TAMSUMA UAB	Chairman of the Board	1467	33.34	33.34
NAUJASIS UŽUPIS UAB	Chairman of the Board
PANEVöŽYS UAB	Member of the Board	157173	49.97	49.97
PANEVöŽIO STATYBOS TRESTAS AB	Chairman of the Board	0	0	0

PANODEN UAB	Member of the Board
PST INVESTICIJOS UAB	Member of the Board	16407	4.4	4.4
PAKNOVUS UAB	Member of the Board	35	35	35
KIRTIMŲ AUTOTRANSPORTAS AB	Member of the Board	-
CONSTRUCTUS UAB	Member of the Board	1 669	4,5	4,5
REALTUS UAB	Member of the Board
VILNIAUS VAIZDAS UAB	Member of the Board	50	50	50
CONVESTUS UAB	Vice-president Chairman of the Board	50 000	50	50
UPöS SLöNIS UAB		1810 and 1969 bonds	18	18
ALPROKA UAB	Chairman of the Board	100 bonds

Term of office May 1999 through May 2003

Term of office May 2003 through April 2004

Term of office February 2005 through April 2008

Clean record.

GVIDAS DROBUŽAS – the Member of the Board. Does not participate in the capital of the Company. Participates in the activities or capital of the following companies:

PANEVöŽIO KELIAI AB Chairman of 529 861 the Board including 43197 pledged to	28,33	28,33
UAB	Dangų emulsija
LAUKTUVöS JUMS UAB Member of the 10 999 Board	49.84	49.76
POKŠTAS UAB Director 261	50.0	50.0
KELTECHA UAB 340	17.0	17.0
KLOVAINIŲ SKALDA AB 203 129	3.77	3.77
GELBERA UAB Member of the 34 Board	34	34
EMULTEKA UAB 12	12.0	12.0
GUSTONIŲ Ž.Ū.T. UAB Member of the 18 028 Board	49.04	49.04
KIRTIMŲ AUTOTRANSPORTAS Member of the AB Board
IGNALINOS STATYBA AB 91 351 Member of the Board	37.93	37.93
TAMSUMA UAB 1467 Member of the	33.34	33.34

Panev÷žio statybos trestas AB Interim Financial Statement for the I half of 2008	11
----------------------------------------------------------------------------------	----

	Board
PANEVöŽIO STATYBOS	Member of the	-	-	-
TRESTAS AB	Board
AB "UKMERGöS KELIAI"		10	-	-

UAB " PANEVöŽYS"	Member of the Board	155 957	49.58	49.58
SPECIALIZUOTA
KOMPLEKTAVIMO VALDYBA AB		21 470	9.28	9.28
PST INVESTICIJOS UAB	Chairman of the	10644	2.9	2.9
	Board
	Director
PANODEN UAB	Chairman of the Board
PAKNOVUS UAB	Member of the Board
CONSTRUCTUS UAB	Director	1 669	4.5	4.5
	Chairman of the
	Board
REALTUS UAB	Chairman of the Board
AUDROS RŪMAI UAB	Member of the
	Board
NAUJASIS UŽUPIS UAB	Member of the
	Board
VILNIAUS VAIZDAS UAB	Chairman of the Board	50	50	50
CONVESTUS UAB	President	50 000	50	50
	Member of the
	Board
UPöS SLöNIS UAB shares		810	18	18
		1969 bonds of Up÷s sl÷nis
		UAB
ALPROKA UAB	Member of the
	Board
MAŽEIKIŲ NAFTA AB		1229
RYTŲ SKIRSTOMIEJI TINKLAI AB		5000

Term of office May 1999 05 through May 2003

Term of office May 2003 through April 2004

Term of office April 2004 through April 2008

Clean record.

VILIUS GRAŽYS – the Member of the Board. Participates in the activities of the following companies:

NAME OF COMPANY	POSITION	NUMBER OF SHARES	CAPITAL %	VOTES %
KELTECHA UAB		250	11	11
EMULTEKA UAB		11	11	11
BASS UAB		40	40	40
PANEVöŽIO STATYBOS TRESTAS AB	Member of the Board
PANEVöŽIO KELIAI AB	Member of the Board	100 085	5.36	5.36

Term of office February 2005 through April 2008 Clean record.

ARTŪRAS BUČAS – the Member of the Board. University education. Does not participate at the capital of the Company. Since 2005 acts as the Member of the Board Panev÷žio keliai AB in the Board

NAME OF COMPANY	POSITION	NUMBER OF SHARES	CAPITAL %	VOTES %
DVARČIONIŲ KERAMIKA AB	Shareholder	356

Term of office 27 October 2006 through the regular general meeting of the shareholders Clean record.

Administration:

DALIUS GESEVIČIUS – Head of the Company Administration, Managing Director. Holds 15 shares of the company. University education (1984, VISI), construction engineer. Clean record.

DANGUOLö ŠIRVINSKIENö – Chief Accountant of the company. Holds no shares of the company. University education (1983, LŽUA) qualification of accountant-economist. Clean record.

9. Information disseminated in public

Since the beginning of the year 2008 up to the day of this report presentation the Company disseminated the following information in public through the system of OMX Client News Service:

Title of announcement	Category of announcement	Language	Date
Financial statement for the Q1 2008 of
Panev÷žio statybos trestas AB	Interim information	Lt, En	29.05.2008
Performance Results for the First Quarter of
2008	Notification on material event	Lt, En	28.05.2008
Resolutions of the annual general meeting
of the shareholders	Notification on material event	Lt, En	25.04.2008
Company's and consolidated financial
statements for the year 2007	Annual information	Lt, En	24.04.2008
Draft resolution of the annual general
meeting of the shareholders	Notification on material event	Lt, En	15.04.2008

Panev÷žio statybos trestas AB Interim Financial Statement for the I half of 2008 13

General meeting of shareholders agenda was supplemented	Notification on material event	Lt, En	09.04.2008

Annual general meeting of shareholders	Notification on material event	Lt, En	19.03.2008
Panev÷žio statybos trestas AB group forecasts the profit of 23 mln. litas for 2008	Notification on material event	Lt, En	15.03.2008
PST AB is ready to participate in the tender for the nuclear power plant construction	Other information	Lt, En	04.03.2008
Panev÷žio statybos trestas AB has not published any information on dividend
payment	Other information	Lt, En	03.03.2008
PST AB Non audited Financial Statements for the year 2007	Interim information	Lt, En	29.02.2008
Turnover of PST increased by 1.5 times in
2007	Notification on material event	Lt, En	28.02.2008
Notification of loss of a block of shares	Notification about acquisition (disposal) of a block of shares	Lt, En	13.02.2008
	Notification about acquisition
Notification of loss of a block of shares	(disposal) of a block of shares	Lt, En	13.02.2008

The content of the above listed announcements can be found on the website of the Vilnius Stock Exchange

HTTP://WWW.BALTIC.OMXGROUP.COM/MARKET/?CURRENCY=0&PG=DETAILS&INSTRUMEN T=LT0000101446&LIST=2 and on the Company website HTTP://WWW.PST.LT

10. Information on compliance with the Governance Code

The Company complies with the procedure of company management set forth by the Law on Companies of the Republic of Lithuania. The Company partially complies with the Governance Code applicable to the companies that are on the list of the Vilnius Stock Exchange. In accordance with the Articles of Association of the Company the bodies of the Company are the General Meeting of the Shareholders, the Board and the Managing Directors. No Supervisory Board is formed in the Company. The annual report of the company will include the more detailed explanation of how the Company complies with the recommendations of the Governance Code.

BALANCE SHEET

In Litas		Group	Company
ASSETS	30 June 2008	2007	30 June 2008	2007
Non-current assets	34819112	31519095	51051685	48083577
Intangible assets	1447827	1495343	249929	300137
Tangible non-current assets	30106189	27197687	25430190	22355648
Financial assets	723853	748505	23731581	23787807
Other intangible assets	2541243	2077560	1639985	1639985
Current assets	284628803	247649072	196461343	167057755
Inventories	15997683	15248424	11232843	10846700
Advance payments	5724913	2581874	4452016	2881764
Contracts in progress	68153981	65496361
Accounts receivable in one year	163439002	117378072	160848851	113523585
Other current assets	1815990	2334829	356315	764988
Cash and cash equivalents	29497234	44609512	19571318	39040718
TOTAL ASSETS	319447915	279168167	247513028	215141332

In Litas	Group		Company
EQUITY AND LIABILITIES	30 June 2008	2007	30 June 2008	2007
Equity	83403905	75571978	78358473	69477727
Share capital	16350000	16350000	16350000	16350000
Reserves	5196244	5279017	4852261	4931791
Retained profit (loss)	61657281	53820670	57156212	48195936
Translation reserve	200380	122291
Minority share	12309045	7869553
Amounts payable and liabilities	223734965	195726636	169154555	145663605
Amounts payable in one year and long	59712950	51749181	11731638	6845001
term liabilities
Loans and borrowings	57465984	49841995	9586216	5107725
Warranty provision	1602240	1265486	1563641	1155495
Deferred tax liabilities	644726	641700	581781	581781
Amounts payable in one year and short	164022015	143977455	157422917	138818604
term liabilities
Loans and borrowings	821048	3323435	357843	2650805
Trade payables	96708052	66260161	95155664	64738369
Prepayments received	38502687	45928684	37653737	45762542
Current tax payable	5811836	4502537	4836457	3652237
Other liabilities	22178392	23962638	19419216	22014651
TOTAL EQUITY AND
LIABILITIES	319447915	279168167	247513028	215141332

PROFIT (LOSS) STATEMENT

Group			Company
ITEM Litas	01 - 06 2008	01 - 06 2007	04 - 06 2008	04 - 06 2007
SALE	257918745	281065701	164701453	153726874
COST OF SALE	224627882	243956507	142719194	128005460
GROSS PROFIT (LOSS)	33290863	37109194	21982259	25721414
OPERATING EXPENSES	18595304	14472955	11213429	8068006
Sale	369089	252282	196727	156786
General and administration	18226215	14220673	11016702	7911220
TYPICAL OPERATING PROFIT (LOSS)	14695559	22636239	10768830	17653408
OTHER ACTIVITIES	-60593	37805	-9244	133315
Income	101538	278497	54718	221354
Expenses	162131	240692	63962	88039
FINANCIAL AND INVESTMENT ACTIVITIES	-1130224	-622613	-691820	-53515
Income	1071839	740468	338051	454950
Expenses	2202063	1363081	1029871	508465
USUAL ACTIVITY PROFIT (LOSS)	13504742	22051431	10067766	17733208
WINDFALL PROFIT
LOSSES
PROFIT (LOSS) BEFORE TAXATION	13504742	22051431	10067766	17733208
PROFIT TAX	2800313	4723148	2395836	3641244
NET PROFIT (LOSS)	10704429	17328283	7671930	14091964
ATTRIBUTABLE TO SHAREHOLDERS	11514338	15562912	8116592	11936163
ATTRIBUTABLE TO MINORITY INTEREST	-809909	1765371	-444662	2155801

Company
ITEM Litas	01 - 06 2008	01 - 06 2007	04 - 06 2008	04 - 06 2007
SALE	252146804	261787457	161943033	137681338
COST OF SALE	221956945	237659842	141920863	123383017
GROSS PROFIT (LOSS)	30189859	24127615	20022170	14298321
OPERATING EXPENSES	14629406	10082698	9076556	5349287
Sale	341773	227273	184118	131777
General and administration	14287633	9855425	8892438	5217510
TYPICAL OPERATING PROFIT (LOSS)	15560453	14044917	10945614	8949034
OTHER ACTIVITIES	154937	94133	57432	56527
Income	255153	205303	105211	112120
Expenses	100216	111170	47779	55593
FINANCIAL AND INVESTMENT ACTIVITIES	-37413	75251	30289	48692
Income	424076	441122	187964	213972
Expenses	461489	365871	157675	165280
USUAL ACTIVITY PROFIT (LOSS)	15677977	14214301	11033335	9054253
WINDFALL PROFIT
LOSSES
PROFIT (LOSS) BEFORE TAXATION	15677977	14214301	11033335	9054253
PROFIT TAX	3036731	2907244	2354351	1911519
NET PROFIT (LOSS)	12641246	11307057	8678984	7142734

CASH FLOW STATEMENT

	Group			Company
	30 June	30 June	30 June	30 June
	2008	2007	2008	2007
Cash flow from operating activities
Net profit (loss)	10.704.429	17.328.283	12.641.246	11.307.057
Elimination of other non-monetary items
Depreciation and amortisation costs	3.151.332	2.434.496	2.663.088	2.006.636
Profit (loss) from transfer of non-current assets	-59.670	-22.137	-56.233	-21.360
Other non-cash items	-446.803	791.640	13.854	7.369
	13.349.288	20.532.282	15.261.955	13.299.702

Changes in operating capital:
Decrease (increase) in inventories	-749.259	2.874.296	-443.228	595.491
Change in long-term receivables
Decrease (increase) in trade receivables	-46.061.521	-58.634.612	-47.325.266	-58.412.482
Decrease (increase) in prepayments	-3.143.039	27.387.187	-1.397.454	27.108.285
Decrease (increase) in contracts in progress	-2.657.620	5.780.005	57.085	3.624.819
Decrease (increase) in amounts receivable and other assets	554.354	-7.006.875	464.078	-444.303
Increase (decrease) in trade payables	30.447.891	38.575.905	30.417.295	40.183.381
Increase (decrease) in provisions	386.754	367.803	408.147	411.803
Increase (decrease) in prepayments received	-7.425.997	-24.445.061	-8.108.805	-23.983.152
Increase (decrease) in profit tax obligations	1.309.299	3.935.179	1.184.220	2.421.913
Increase (decrease) in employment related liabilities	1.779.952	1.285.957	984.124	853.176
Increase (decrease) in other payables and liabilities	-3.305.619	-1.240.764	-3.270.981	-1.300.559
	-15.515.517	9.411.302	-11.768.830	4.358.074

Elimination of results of financial and investing activities	766.128	622.613	44.234	-75.251
Net cash flow from operating activities	-14.749.389	10.033.915	-11.724.596	4.282.823

Cash flow from investing activities
Acquisition of long term assets (excl. investment)	-1.541.764	-1.466.558	-1.207.248	-1.518.385
Transfer of long term assets (excl. investment)	105.740	80.724	56.239	77.780
Acquisition of investments
Transfer of investment	9.999
Loans issued	-297.092	-399.480	-6.000	-681.560
Loans recovered
Dividends and interest received	543.677	467.532	417.066	404.704
Other increase in cash flow from investing activities	499
Other decrease in cash flow from investment activities
Net cash flow from investing activities	-1.178.941	-1.317.782	-739.943	-1.717.461

Cash flow from financial activities
Cash flow related to owners of the company	1.180.322	-1.167.613	-4.069.079	-2.917.463
Increase in financial liabilities	4.617.004
Decrease in financial liabilities	-1.015.689	-15.557.110	-506.732	-11.975.347
Interest paid	-1.969.723	-1.164.538	-296.251	-241.460
Leasing (financial lease) payments	-2.369.773	-1.905.188	-1.974.571	-1.639.896
Increase in other cash flow from financial activities	1.076.238	37.960	53.004	35.847
Decrease in other cash flow from financial activities	-780.416	-73.273	-211.232	-554
Net cash flow from financing activities	737.963	-19.829.762	-7.004.861	-16.738.873

Increase (decrease) in net cash flow	-15.190.367	-11.113.629	-19.469.400	-14.173.511
Result of changes in currency rate on the balance of cash and
its equivalents	78.089	28.534
Cash and its equivalent at the beginning of the period	44.609.512	32.891.037	39.040.718	31.830.941
Cash and its equivalent at the end of the period	29.497.234	21.805.942	19.571.318	17.657.430

STATEMENT OF CHANGES IN EQUITY

Gr ou p					In f lu en ce f c ha o ng e in		Lo ss es p er t p ar en
i L ta s	ho ise d Au t r	ha S re	lu io Re t va a n	l Le g a	ha ex c ng e	la d Ac te cu m u	co m p an y	in i M ty or
	i l ta ca p	bo nu s	re se e rv	re se e rv	te ra	f i t p ro	ha s re	t p ar	l To ta

lan f be Ba 3 1 D 2 0 0 6 ce as o ec em r	1 6. 3 5 0. 0 0 0		3. 7 8 0. 0 6 3	1. 6 1 9. 15 5	1 0. 9 0 6	27 3 7 6. 95 4	4 9. 1 3 7. 0 7 8	4. 6 9 2.1 3 6	5 3. 8 2 9. 21 4
lue f re lua d a De in te ts cre ase va o va sse									0
d p d t lia b lity ost i an p on e ax			-1 0 6. 0 8 8			1 0 6. 0 8 8		-1. 2 24	-1. 2 24
ha d t C in ost ng e p p on e ax									0
fit ( los ) for Ne t p 2 0 0 7 ro s						15 .5 6 2.1 7 0	15 .5 6 2.1 7 0	1.7 6 6. 2 2 3	17 3 2 8. 3 9 3
de d Div i n						-3. 0 1 0. 5 0 0	-3. 0 1 0. 5 0 0		-3. 0 1 0. 5 0 0
l re for d Leg a ser ves me				2 3. 5 6 3		-2 3. 5 6 3			0
ha Cu te rre ncy ra c ng e					2 8. 5 3 4		2 8. 5 3 4		2 8. 5 3 4
f m ha Inc ino rity rea se o s re								6. 9 9 9. 2 0 0	6. 9 9 9. 2 0 0
fer Co tra mp an y ns				3 5 5. 0 0 7		1 0 2. 0 3 6	45 7. 0 4 3		45 7. 0 4 3
Ba lan f 3 0 Ju 2 0 0 7 ce as o ne	1 6. 3 5 0. 0 0 0	0	3. 6 7 3. 97 5	1. 9 97 .7 25	3 9.4 4 0	8 4 0. 11 3. 1 5	6 2.1 74 3 25	1 3. 45 6. 3 3 5	75 6 3 0. 6 6 0
lan f 3 be 2 0 0 6 Ba 1 D ce as o ec em r	1 6. 3 5 0. 0 0 0	0	3. 6 3 6. 2 9 9	1. 6 4 2.7 1 8	1 2 2. 2 9 1	5 3. 8 2 0. 6 7 0	75 .5 71 97 8	7. 8 6 9.5 5 3	8 3. 44 1.5 3 1
d a lua Fix ts t ion e sse rev a			-1 0 6. 0 9 0			1 0 6. 0 9 0		-1. 2 2 2	-1. 2 2 2
f r f F De iat ion lua d p A te art p rec o eva o									0
Po d t late d lia b i lity stp on e ax re									0
Pa i d u ita l p cap								24 9.4 0 0 5.	24 9.4 0 0 5.
fit ( los ) 2 0 0 8 Ne t p ro s						11 .5 14 3 3 8	11 .5 14 3 3 8	-8 0 8. 6 8 6	1 0. 7 0 5. 6 5 2
de d Div i n						-3. 7 6 0. 5 0 0	-3. 7 6 0. 5 0 0		-3. 7 6 0. 5 0 0
f lue f c ha In rat nce o urr en cy e c ng e					7 8. 0 8 9		7 8. 0 8 9		7 8. 0 8 9
Min ity ha in or s re g a									0
Min ity ha los or s re s									0
for d Re ser ves me				2 3. 3 17		-2 3. 3 17			0
Co fer tra mp an y ns									0
									0
la f Ba 3 0 Ju 2 0 0 8 nc e as o ne	1 6. 3 5 0. 0 0 0	0	3. 5 3 0. 2 0 9	1. 6 6 6. 0 3 5	2 0 0. 3 8 0	6 1. 6 5 7. 2 8 1	8 3. 4 0 3. 9 0 5	1 2. 3 0 9. 0 45	95 .71 2. 95 0

In L i ta s	Au ho ise d t r	S ha re	F A	F in ia l an c	Le l g a	O he t r	fe De d rre
	i l ta ca p	iu p re m m	lu io t re va a n	re se rv e	re se rv e	re se rv es	l t re su	l To ta

Ba lan f 3 1 D be 2 0 0 6 ce as o ec em r	6. 3 0. 0 0 0 1 5		3. 3 9 6. 9 6 8		6 9. 1. 1 15 5		2 6. 0 8 6 45 .7	9 0 9 47 .41 1.
lua f fix d a Re t ion ts va o e sse								0
d t late d lia b lity Po stp i on e ax re								0
lia b lity late d t lua f F Po stp . ta i t ion A x re o r eva o								0
fit Ne ( los ) 2 0 0 7 t p ro s			-7 9.5 3 0				11 3 8 6. 5 8 7	11 3 0 7. 0 5 7
for d Re ser ves me					15 8 75		-15 8 75	0
de d Div i n							-3. 0 1 0. 5 0 0	-3 0 1 0. 5 0 0

lan f Ba 3 0 Ju 2 0 0 7 ce as o ne	1 6. 3 5 0. 0 0 0	0	3. 3 17 .4 3 8	0	1. 6 3 5. 0 3 0	0	3 4.4 0 5. 9 9 8	5 5. 7 0 8. 4 6 6
Ba lan f 3 1 D be 2 0 0 7 ce as o ec em r	6. 3 0. 0 0 0 1 5	0	3. 2 9 6. 6 7 1	0	6 3 0 3 0 1. 5.	0	8. 95 9 3 6 4 1	6 9.4 27 77 .7
lua ion f fix d a Re t ts va o e sse								0
late d p d t lia b lity Re ost i p on e ax								0
d p fit lat d t lua f F Po stp tax t ion A on e ro re e o r eva o								0
Ne fit ( los ) 2 0 0 8 u nis d t p ro s nre cog e			9.5 3 0 -7				9.5 3 0 7	0
Ne fit ( los ) 2 0 0 8 t p ro s							2. 6 24 6 1 41	2. 6 24 6 1 41
Div i de d n							-3. 7 6 0. 5 0 0	-3 .7 6 0. 5 0 0
for d Re ser ves me								0
d Re ser ves us e								0
f a Inc ( de ) ho rise d c ita l ut rea se cre ase o ap								0

f Ba la 3 0 Ju 2 0 0 8 nc e as o ne	3 0. 0 0 0 1 6. 5	0	3. 3 2 1 7. 2 1	0	3 0 3 0 1. 6 5.	0	5 7. 1 5 6. 2 1 2	8. 3 8. 3 7 5 4 7

EXPLANATORY NOTE

General information

Panev÷žio statybos trestas AB (hereinafter "the Company") was established in 1957 and for a long tome was known as Šiaur÷s Lietuvos Statybos Trestas. In 1991 the Company was registered as a State Capital Company. On 30 October 1993 the State Capital Company was reorganized to a Public Limited Liability Company. Company code 147732969, VAT code LT477329610. Registration certificate Nr. 013732, issued on 27 September 2004 by the State Register Centre Panev÷žys Branch.

During the I half of the year 2007 the Company had the following branches: Gerbusta, Pastatų apdaila and Genranga. These branches have accounting independent of the parent company but their assets, liabilities and financial results are included in the financial statement of the Company. The company has its representative office in Cherepovec, and two branches in Saint-Petersburg and Kaliningrad. The branch in Saint-Petersburg does not perform any economic activities. The financial year of the Company is the calendar year. The anticipated period of commercialeconomic activities is unlimited.

The main activity of the Company and its subsidiaries (hereinafter "the Group") is designing and construction of various buildings, structures, facilities, communications and other similar objects in Lithuania and abroad, real estate development. In addition to the listed activities the Group rents out premises and equipment, resells utility and communication services.

Basis of interim financial statement preparation

The figures in the interim financial statement are presented in the national currency of Lithuania the Litas which is also the Company's functional currency.

The same accounting principles were applicable to the interim financial statement as to the annual financial statement.

The following currency rates were used when preparing the interim financial statement:

Currency	June 2008	Dec. 2007	June 2007
1 EUR	3,4528	3,4528	3,4528
10 SEK	3,6698	3,6437	3,7386
10 RUB	0,93536	0,96085	0,99356

Principles of consolidation

The consolidated financial statement incorporates the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of the entity so as to obtain benefits from its activity.

The financial results of the subsidiary companies, acquired or sold during the year, are included in the consolidated operating statement covering the period from the subsidiary company acquisition date till the subsidiary company selling date. The financial statements of the subsidiary companies are revised so that they comply with the accounting policies applicable by the group in case they were different.

For consolidation purposes all significant balance, dealings and unrealized profit (loss) of the operations between the companies the companies of the Group were eliminated from the financial statement.

Investments in non-current assets

In the I half of 2007 the investments of the Group in acquisition of non-current assets amounted to 6 062 374 Lt.: Panev÷žio statybos trestas AB acquired non current assets for 5 525 840 Lt.

Loans

As of 30 June 2008 the long-term bank credits of the company Group of PST investicijos UAB amounted to 46 680 545 Lt. All loans to be repayable during the period from September 2008 through July 2009. The interest rate 6 months Vilibor + 1.05 – 1.55 %.

Guarantees, sureties

On 30 June 2008 guarantee credit institutions granted liabilities to the Company for the Environmental Project Management Agency of the Ministry of Environment of the Republic of Lithuania and Lietuvos geležinkeliai AB had 26 147 034 Lt. of the Company guarantees PST investicijos UAB dispensation of duties on Credit Agreement with AB DnBNORD for the amount of 4 164 124 USD.

Transactions with associated parties

Commercial

transactions:

Company of the Group	Transaction type	Sales Jan. through June	Result accounted	Amount receivable as of 30 June 2008
PSTI UAB	sales	849.082	192.026	284.712
Metalo meistrai UAB	sales	193.838	0	0
Skydmedis UAB	sales	137.816	0	0
Vekada UAB	sales	106.622	4.106	0
Verkių projektas UAB	sales	1.703	0	335
Vilniaus pap÷d÷ TŪB	sales	19.004.273	0	4.360.741
Alinita UAB	sales	6.446	0	3.006
		20.299.780	196.132	4.648.794

Company of the Group	Transaction type	Purchase Jan. through June	Unrealised result	Amount due as of 30 June 2008
Metalo meistrai UAB	purchase purchase	4.757.481	1.017	739.958
Skydmedis UAB Alinita UAB	purchase	147.239 42.297	0 2.739	21.377 0
Vekada UAB	purchase purchase	3.816.096	142	2.566.701
OOO Baltlistroj Vilniaus pap÷d÷ TŪB	purchase	7.922.593 10.027	0 0	3.078.416 9.850.000
		16.695.733	3.898	16.256.452

Loans:

	Loans	Loans
Company of the Group	allowed Jan. through June	Loan balance as of 30 June 2008	Income from loans per 01- 06 m÷n.	receivable as of 30 June 2008

PS Trest	6.000	9.000	268	504
OOO Baltlistroj	0	250.302	0	0

	6.000	259.302	268	504

Dividends

The annual General Meeting of the Shareholders of Panev÷žio statybos trestas AB that took place on 25 April 2008 took the decision to pay dividends in the amount of 3 760 500 Lt. (0.23 Lt. per share) and bonuses in the amount of 326 000 Lt.

Significant changes in the interim financial statement during the reporting period

For the first half of the year 2008 the PST Group had no income from the real estate development activities whereas the sales of the first quarter of the year 2007 were significantly increased by the income from the real estate sales which had conditioned higher net profitability for the first quarter of 2007.

In the year 2008 the management is planning to reach the consolidated turnover amounting to 530 mln. Litas and net profit amounting to 23 mln Litas.

AI Terminal

Panevezio Statybos Trestas

2244_10-q_2008-08-28_4cb1cb09-251b-4710-8973-497ccb10ad43.pdf