Kaolin Ad

On November 30, 2007 in accordance with the consolidated reports of the Company submitted to the Financial Supervision Commission and the Bulgarian Stock Exchange, it has become clear that the economic group of Kaolin AD has realized sales revenues amounting to BGN 85,684 thousand for the first nine months of 2007, which constitutes a growth in sales of 25 % compared to the same period of year 2006. Along with its subsidiaries, the Company has retained its steady rate of growth in sales revenues in all principal sectors of their activities.

?The Group’s net profit realized in the first nine months of year 2007 (after deducting the minority shareholding) amounts to BGN 17,016 thousand. During the last quarter, the increased costs related to the prices of liquid fuels and of the transport services respectively have continued to have unfavourable effect on the Group’s activities.

In order to secure its competitiveness in future, Kaolin AD, as well as the remaining companies of its economic Group, along with their large-scale investment programme, are actively working in order to manage their energy costs in a better way. In this connection, as of the present moment the introduction of an energy management system has been successfully completed in all principal business units of Kaolin AD.