Following a decision of its Board of Directors Sviloza AD founded a subsidiary of the company in Romania. The company is called Sviloza BIO Ltd and is 100% controlled by the company.

The subsidiary’s main office will be in Romania and its core activity will be trade and logging. The company’s activities may later expand to any activity permitted by Romania government regulations.

The company was founded with the aim of increasing the volume of wood delivery from Romania.

Sviloza AD has appointed a general meeting of shareholders June 23, which is to vote the proposal to set aside the retained profit from prior periods to the company’s Additional Reserves Fund.

The final date for trade with the shares of the company as a result of which the holder will be able to exercise their voting right at the forthcoming general meeting is June 6, 2007.

For 2007 first quarter Sviloza AD posted a profit in the amount of 660 000 leva against a loss of 315 000 leva a year ago.

21 of the company’s shares changed hands during today’s early trade session at 5.00 leva/share.