Vilkyskiu Pienine

Earnings Release • Nov 30, 2010

AB Vilkyškių pieninė Group

The rezults of 9 months of 2010

About the Company

• •AB Vilkyškių pieninė was established in 1993
• •As at 30 September 2010 the Group had 777 employees
• • Core business of AB Vilkyskių pieninė Group is production of dairy products.
• • Securities issued by the Company have been included into the Current Trade List of Vilnius Stock Exchange. The shares are listed in the Official List of Vilnius Stock Exchange.
• •Standards: ISO 9001:2000 and ISO 22000:2000.

Group of Companies

The subsidiary 99,9% The subsidiary 97,2%

Significant events in 2010

• • Dividends, amounting to LTL 1.094 thousand, paid out (LTL 0.10 per 1 share);
• •AB Kelmes pienine received Export Licence to Russia;
• • Decided to increase in share capital of AB Modest from LTL 0.6 to 5.6 million;
• •Marketing and Quality Departments established;
• • Main investments include investment in cottage cheese production technologies also freezing and packaging equipment;
• •Started the project of stock management system;
• •Made the next audit of ISO 9001:2000 and ISO 22000:2000.

Specification of markets per revenue

Financial indicators for the last 3 quarters (in LTL thousand)

Main financial indicators

( ) T ho ds L T L us an	Ju ly - Se be te p m r 2 0 1 0	Ju ly - Se be te p m r 2 0 0 9	C ha ng e ( ) t p er ce n	Ja nu ar y - Se be te p m r 2 0 1 0	Ja nu ar y - Se be te p m r 2 0 0 9	C ha ng e ( ) t p er ce n
Re ve nu e	7 1. 4 8 5	4 3. 9 8 3	6 2, 5	1 7 9. 0 7 1	1 1 4. 6 8 6	5 6, 1
A E B I T D	5 3 9. 6	5. 1 1 9	3, 3 6	1 4. 3 0 6	1 3. 4 0 4	1 7,
E B I T D A in m ar g	1 3, 5 %	1 3, 4 %		8, 0 %	1 1, 7 %
Am isa io d de ia io t t t or n an p re c n	1. 4 8 9	1. 5 4 9	0 -6 ,	4. 4 9 7	4. 3 6 7	-3 0 ,
Ne f i t p t ro	5. 4 6 5	3. 2 6 4	6 7, 4	8. 0 6 2	6. 3 2 4	2 7, 5
f i in Pr t m o ar g	7, 6 %	4 7, %		4, 5 %	5, 5 %
Ba ic in ha s ea rn g s p er s re	0, 4 6	0, 2 7	7, 4 6	0, 8 6	0, 5 3	2 7, 5
Q i f p ha d m i l k t ty ua n o ur c se	5 4 3 1 6.	5 0. 8 5 3	1 1, 0	1 3 5. 3 4 8	1 1 2. 2 5 7	2 0, 6
In tm ts ve s en	9 4 6	2 0 5	3 1, 5 6	3. 2 0 6	1. 2 7 4	1 5 1, 6
Ne f in ia l de b t t an c	4 1. 5 0 3	5 8. 8 1 0	-2 9, 4	4 1. 5 0 3	5 8. 8 1 0	-2 9, 4

Consolidated sales income during 9 months in 2010, compared with the same period of last year, increased by 56 percent.

The reasons can be disclosed as following:

• • increased production volume (we processed 30 percent more raw milk);
• •increased quantities of export;
• • due to increased demand in dairy products at the beginning of the year, we reduced a part of stock;
• • due to increase in sales prices by approximately 30 percent of some exported products.

Nearest plans

Investments into production:

• •Installation of new premises for cheese storage and ripening;
• • Acquisition of equipment for a more convenient packaging for final consumer;
• •Development of energy sector (cold, heat and electricity).

Sales plans:

• •Development of markets of fresh dairy products;
• • Purposeful creation and strengthening of Company's and certain trade marks, both in Lithuanian and foreign markets;
• • Development of assortment by proposing exceptional cheese brands and desert dairy products in the market.

Contacts

Gintaras Bertašius General Director Tel. +370 441 55330 E-mail: gintaras@cheese.lt Vilija Milaševičiutė Finance Director Tel. +370 441 55102 E-mail: vilija@cheese.lt

www.cheese.lt