INVESTMENT PROGRAMME MONBAT PLC - Sofia

INTRODUCTION: MONBAT PLC IS THE FASTEST DEVELOPING MANUFACTURER OF ACCUMULATOR BATTERIES FOR VARIOUS APPLICATIONS IN SOUTH- EASTERN EUROPE

STRATEGIC PURPOSE: Increasing the competitiveness of MONBAT Plc and taking a position among the first three biggest companies in the accumulator batteries’ business in Europe INVESTMENTS WILL BE MADE IN THE FOLLOWING DIRECTIONS: Increasing the production capacity and reaching a capacity of starter batteries per year until July, 2009 compared to in Doubling the production capacity for telecommunication, stationary batteries to the number of until the end of Establishment of a new company in the city of Dobrich for production of traction batteries for electric trucks as in 2009 will be produced elements and during the two following years the capacity will reach elements. Modernization of the production in MONBAT Plc and START JSC – replacement of old machines and increasing the possibilities for formation of accumulator batteries. A Program for attracting young and promising engineers which includes construction of 45 apartments to be given to them for no cost after the expiration of their long-term contracts.

TOTAL AMOUNT OF THE INVESTMENTS TOTAL AMOUNT OF THE INVESTMENTS FOR 2008 AND 2009 BGN

Increasing the production capacity of Monbat Plc and Start JSC– BGN , divided as follows: 2008 – BGN – BGN Modernization of the production in MONBAT Plc and START JSC 2008 – BGN Doubling the production capacity for telecommunication, stationary batteries 2008 – BGN MAIN FIELDS OF INVESTMENTS 2008 – 2009

Factory for old accumulator batteries recycling in the Republic of Serbia BGN Put in operation period – July, 2008 Factory for old accumulator batteries recycling in the Republic of Romania 2008 – BGN Put in operation period – October, 2008

MAIN FIELDS OF INVESTMENTS 2008 – 2009 Modernization and increasing the production capacity of the factory for old accumulator batteries recycling in Montana BGN Put in operation period – July, 2008 Establishment of a new company in the city of Dobrich for production of traction batteries for electric trucks with BGN total amount of the investment. The production capacity will reach traction elements until – BGN – BGN – BGN

MAIN FIELDS OF INVESTMENTS 2008 – 2009 A Program for attracting young and promising engineers. 45 apartments will be built under this Program which will be given to the engineers for no cost after expiration of their long-term contracts with MONBAT Plc – BGN Put in operation period – December, 2008

FINANCIAL PROVISION OF THE INVESTMENTS 2008 – 2009 BANK LOANS – UP TO BGN OWN RESOURCES, LEASING AND/OR BOND ISSUE – BGN