ATRIA'S LITHUANIAN PLANT REACHES TOPPING-OUT HEIGHT In July Atria acquired the Lithuanian meat-processing company UAB Saltuva. The company's name has now been changed to UAB Vilniaus Mesa in line with its brand. The transaction was completed at the end of August. At present the company is building a modern production plant in Vilnius. Scheduled for completion by April 2004, the plant will have approximately 7,500 square metres of floor space. The company has received a considerable investment subsidy for carrying out the plant project. The objective of these EU grants is to get the best food industry companies in the accession countries approved according to EU standards from the start of their membership of the EU. Some of the companies in the meat-processing industry will nevertheless not manage to keep up with the pace of change and will not comply with the requirements of EU regulations. It is believed that the structure of the industry will change substantially in the years ahead. As the only western-owned company in this field, Atria is seeking to gain a strong foothold in these markets stage by stage. In all likelihood, this will call for further acquisitions. At present, Atria Group plc is carrying out a study of the Russian market. Atria's objective is to establish a foothold in the fast-growing markets of western Russia. The company has long years of experience in the export of meat and meat products, but in the company's view, local manufacture will be required in order to become firmly established. At present the Russian market is developing energetically. In order to reduce risks, Atria plans to team up with a partner for this venture. Atria expecting a slight improvement in earnings Atria strengthened its position in the Swedish market substantially via the purchase of Samfood's business operations last year. Atria Group plc's subsidiary Lithells AB is Sweden's second largest company in the sector, and its turnover is expected to reach 350 million euros this year. At the same time, the company's earnings are expected to improve significantly on the results posted in previous years. Atria Group plc's earnings have been hit hard by worldwide overproduction and the prevailing low price level. Nonetheless, it is believed that the positive trend in expenses coupled with processed meat production and operations in Sweden will enable the entire company to report an earnings improvement on last year. The business cycle in the slaughterhouse industry is expected to improve sometime soon. Signs of an upswing can already be seen in central Europe, and this is expected to be reflected in the form of a positive price trend in the market no later than in the first half of next year. This will be of major importance to large meat processors like Atria. Further information: Seppo Paatelainen, President, tel. +358 400 661 742 Atria Group plc is a forward-looking food processing company that is going international at a fast rate. Our brands are Atria, Chick and Duke's as well as Sibylla, Lithells and Forssan. In 2003, Atria Group's turnover is expected to rise to EUR 800 million, of which Sweden will account for about EUR 350 million. We employ 3700 people on average. The largest companies of the Atria Group are Atria Oy, Lithells AB, UAB Vilniaus Mesa and Liha ja Säilyke Oy. Atria Group is the biggest company in the meat business in Finland and the largest manufacturer of meat products in the Nordic countries and the Baltic area. ATRIA GROUP PLC Seppo Paatelainen President DISTRIBUTION Helsinki Exchanges Principal media
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