Sparly Eltos (

) intends to increase capital by issuing 2 800 000 new common, registered, paperless shares with a face value of 1 lev and issue value of 16 leva. If all shares are subscibed and paid the company will raise 44.8 mln leva (22.905 mln euros).

The company increases capital in order to raise funds for modernization and automation of production, to increase production capacity, to purchase new equipment, ensure environmental sustainability, and reduce leverage.

The funds raised through the new emission will also provide financing to Sparky Eltos's 4-year investment strategy which requires some 25 mln leva (12.782 mln euros). If the company raises the necessary amount, it will be able to implement the investmenmt program within 15-18 months.

Sparky Eltos will increse capital only if at least 2 800 000 shares are subscribed and paid. The increase will be equal to the amount paid for the shares.

The company issues 1 right per each already existing share. 5 rights entitle to the subscription of 1 new share at an issue value of 16 leva.

The company is to issue a prospectus for the public offering in complinace with POSA before 30 September 2007. Within the same deadline the prospectus will be filed with the Financial Supervison Commission for its approval.

The decision of Sparky Eltos AD's management board was confirmed by its Supervisory Board on 9 August 2007.

The company recently increased capital from 2 mln leva (1.022 mln euros) to 14 mln leva (7.158 mln euros) with own funds, The new emission has not been floated on BSE yet.

1137 shares changed hands on the position yesterday at an average of 18.95 leva.