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The Net Result in the Second Quarter Has Increased 10 Times Compared to the Result for the First Quarter

Kaolin Plc reports sales revenues for the first six months of 2009 to the amount of BGN 45,968,000. Thus the company’s sales register an increase compared to the first quarter of 2009 as from BGN 21,629,000 they have increased to BGN 24,339,000 for the second quarter.

Irrespective of the complicated economic situation, the sales’ amount for the first six months of this year is only 19 % lower compared to the sales for the same period of the previous 2008.

During the second quarter, an increase of the incomes from sales in the ceramics industry and the construction sector was observed, respectively by 43 % and 77 % in comparison to the first quarter of 2009.

The net financial result of the company for the six months is profit to the amount of BGN 3,693,000, compared to BGN 5,445,000 for the same period in 2008. At the same time, the earnings before interests, taxes depreciation and amortization (EBITDA) are to the amount of BGN 9,687,000 and have retained the level registered in the first six months of 2008.

The net financial result for the second quarter only is BGN 3,352,000, compared to BGN 4,098,000 for the same quarter of 2008.

The considerable increase in the financial result for the second quarter was also due to the serious restrictions imposed on the expenses for operational activity which, in practice, remain at the level of the first quarter in 2009. The expenses related to staff, transportation and logistics services and expenses for materials were essentially optimized. There is an increase only in the deduction for amortization and depreciation.

During the past quarter, the company successfully completed the second stage of the ISO 14001 certification process.

At the end of the first six months, Kaolin Plc undertook yet one more capital increase of the subsidiary company Solarpro AD’s equity (from BGN 12 mln. to BGN 24 mln.), which started production of solar panels during the reported period as well as construction of solar stations. The first solar station, Project North-East 1, having a maximum capacity of 2.4 MW is currently being constructed on the territory of the village of Yankovo, Shoumen region. It will be put into operation during the second half of year 2009 (www.solarpro.bg).

* EBITDA - earnings before interests, taxes depreciation and amortization.