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ELG: Company Announcement regarding the operation of ELKOTech Croatia

Spekuliantai.lt | 2009-08-03 | NASDAQ OMX biržų naujienos | perskaitė: 1149
ELG: Company Announcement regarding the operation of ELKOTech Croatia

ELKO Grupa Company Announcement 03.08.2009

Company Announcement regarding the operation of ELKOTech Croatia

Starting with 3rd August the ELKO Grupa JSC has decided to close the operation
of ELKOTech Croatia and discontinue all distribution activities in Croatia,
where it has been operating since 2000. Recently the market perspectives and
growth in Croatia has been negatively affected by the current economic downturn
and postponed accession process to the European Union. The decision has been
made by evaluating the profitability and financial risks of Croatian
operations.

Closing of the operation in Croatia will not have essential effect on the
operational results of ELKO Grupa JSC and negative effect on our business in
other countries. The turnover of ELKOTech Croatia accounted for 1.6% of total
group sales during 2009.

This decision will allow us to concentrate more of our resources in other
markets, which will ensure further growth and development of the ELKO Group and
its partners.

ELKO Grupa JSC

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