METAFRAX BALANCE PROFIT HAS INCREASED BY 40% AS OF THE END OF 2007

Metafrax has reviewed the preliminary results of the company's activity for the year 2007.

Total volume of commercial products manufactured during this period amounts to 7 303 mln. rubles, that is approximately 20% more than in the year 2006.

Company's total sales reached 7 550 mln. rubles, balance profit has increased more than 40% and made up 2 250 mln. rubles.

Production profitability in 2007 was at the level of 45%.

Also Metafrax net profit was 37% more if compare with the year 2006 and reached 1,7 billion rubles, total company's income has increased by 16,4% up to 7,3 billion rubles.

In 2007 the company manufactured 966 ths. tons of methanol - the basic company's product (that is 22% more than in 2006) while over 30% of manufactured product has been consumed for the in-company's processes.

Besides within the reported period the company has produced 283 ths. tons of formalin that is 40 % more against that of the previous year.

Production of urea formaldehyde concentrate manufactured by the Metafrax since 2003 has increased by 9% up to 196 ths. tons. In addition the company has produced 19 ths. tons of pentaerythritol (17% more against the previous year), more than 15 ths. tons of urotropine, 9 ths. tons of sodium formiate and over 1,1 ths. tons of bulk and granulated polyamide.

In 2007 the Metafrax invested 1 033 mln. rubles. The company has expended 110 mln. rubles for social needs and benefits.

- We think that results of the company's activity in 2007 are positive, - says Armen Garslyan, the Chairman of JSC Metafrax Board of Directors, - in spite of acute fluctuations on the markets of some of our products the Metafrax's performance was stable and our results were even better than we have planned. Last year we concluded three major contracts for purchasing of polyamide, urotropine and gaseous nitrogen plants for the total amount of more than 26 mln. EURO. Now we shall implement these projects.

Also this year we are planning to conclude another important contract with a foreign partner for the purpose to launch a new product.

Company's strategy oriented to the deep products processing works well. In 2008 we estimate the sales volume to be over 7,5 billiard rubles. By the year of 2010 Metafrax commercial products output shall be approximately ten billiard rubles.