For the second quarter of 2009 Kaolin AD recorded consolidated revenues from sales amounting to 31.250 mln leva versus 24.06 mln leva for the first quarter of the year. The data of first half-year period show 55.31 mln leva versus 66.68 mln leva for 2008, i.e. the drop reaches 17 %.

On a consolidated basis, as of June 30, 2009, the company reported tinier drop in sales than an unconsolidated basis over the same period in 2008 (17 % versus 19 % for individual revenue). This is a result of both normalized production and commercial activity in Ukraine, accompanied with the upcoming completion of large-scale investments in the subsidiary company "PKSP" in Ukraine and the stable positioning of subsidiaries in Serbia.

Over the past quarter Solarpro PLC reported for the first time substantial contribution to the Group's revenues amounting to nearly 6 %. As a direct result thereof, the first phase of the photovoltaic plant of Solarpro in the village of Yankovo, Shumen district area, has been officially commissioned this week. The first phase of the project "North-East 1" features installed capacity of 338 kWp. The plant had been successfully acceded to the power grid of E. ON and delivers electricity to the electricity distribution company. The total capacity of the plant will be put into operation by the end of the year. The whole plant "North-East 1" has nominal power of 2404 kWp will be the largest photovoltaic park in the country.

On June 29, 2009, the capital of Solarpro was increased and Kaolin paid up the entire increase of 12 million leva, thus making the capital of the subsidiary amount to 24 mln leva. At the end of March the first panels of the first production line of the photovoltaic plant in Silistra were produced.

The net financial result of the Group for the second quarter of 2009 records a profit of 3.82 mln. Leva versus 178,000 leva accountable for the first three months of the year.

Compared to the first half of 2008, the Group's profit accounts for 5.75 mln leva marking a decrease to 4 mln leva as of June 30.

Both on an individual and consolidated base, EBITDA keeps at the same levels as in the previous period last year, and on a consolidated basis as of June 30, 2009 it records a slight growth (11.45 mln leva versus 11.37 mln leva as of June 30, 2008).

The significant improvement in financial results for the second quarter result from the tight measures undertaken for optimization of the operational activities put in place as early as at the end of 2008, including reasonable redundancies, commissioning of new technological capacity, expanded product base and entering new markets.