Lode A/S - Sale of 82.8% Controlling Stake RIGA - 20th of July, 2007 - Lode A/S (“Lode”) (LOD1R.RL), the Baltic ceramic building materials producer listed on the Riga Stock Exchange (“RSE”), today announced that a consortium led by the Greek industrialist George Tsatsos and private equity funds managed by Capital International (“CIPEF”) has acquired more than 82% of its shares. Lode Holdings Limited (“Lode Holdings”), a Cypriot holding company established by Mr. Tsatsos, CIPEF and other investors, acquired 1,842,315 of Lode's 2,225,138 outstanding shares at LVL 8.99 per share from a group of nine longstanding investors (the “Sellers”). As required by RSE rules, Lode Holdings expects to tender for the remaining 382,823 Lode shares at LVL 8.99 per share. Lode operates four factories in Latvia, making facing bricks, hollow bricks, ceramic blocks and related materials. Lode sells most of its output in Latvia, but many products are exported to Poland, Russia, Lithuania, Estonia and the Ukraine. IBS Prudentia Financiers, Liepa, Skopina/BORENIUS and SEB Latvijas Unibanka advised and supported the Sellers on this transaction. Lode Holdings was advised and supported by Allen & Overy and Soreinen law office and finance was provided by Hansabanka. Janis Slesars, Chief Executive Officer of Lode, said: “We are proud to achieve liquidity for early investors in Lode by attracting investment from key industry leaders. Lode has the best people and products in our industry in northeastern Europe. With the support of George Tsatsos and his partners, and with the long-term financial backing of world class financial investors, Lode has a very bright future.” George Tsatsos said: "Lode is an excellent company with high quality products and a great potential for development. We are delighted to work with their dynamic management team". Contact: Elena Hajiroussou, [General Counsel] Lode Holdings Limited Tel: +357-22 361 1382 Fax: +357-22 752 597 Email: info@lode-holdings.com ABOUT LODE Lode is a very successful ceramics construction materials manufacturing company that was privatized 11 years ago. The company produces hollow and solid construction bricks, facing bricks, roofing tiles, ceramic blocks, pavement bricks, and related products. With 2006 consolidated revenues of LVL 9.2 million and annual average sales growth of 23% since 2003, Lode is among the leading building material manufacturers in the Baltic States. For more information visit www.lode.lv . ABOUT GEORGE TSATSOS George Tsatsos is an experienced businessman in the field of building materials and has a very successful track record in the international cement industry. He has in the past managed Heracles General Cement of Greece, Vassilico Cement in Cyprus, organised the privatisation of Kunda Cement of Estonia, Warta cement of Poland and Chelm Cement of Poland. He is currently Chairman of Atlas Cement Technology and Management Ltd., a British consulting company. ABOUT CIPEF Since 1992, Capital International, Inc. has managed five emerging markets private equity funds with aggregate capital commitments $3 billion. Capital International Inc. is the manager to the CIPEF funds and is one of the institutional investment management companies of The Capital Group Companies, headquartered in Los Angeles. For more information, visit www.capgroup.com/pe . IBS Prudentia Financiers, Liepa, Skopina/BORENIUS and SEB Latvijas Unibanka are advising the Sellers and no-one else and will not be responsible to anyone other than the Sellers and Lode or for providing advice in relation to any transaction or arrangement referred to in this announcement. Neither IBS Prudentia Financiers, Liepa, Skopina/BORENIUS nor SEB Latvijas Unibanka will be offering advice nor will either of them be responsible for providing the protections afforded to clients of IBS Prudentia Financiers, Liepa, Skopina/BORENIUS and SEB Latvijas Unibanka to any person on the content of this announcement or on any transaction or arrangement referred to in this announcement. Allen & Overy, Soreinen law offices and Hansabanka are advising Lode Holdings and no-one else and will not be responsible to anyone other than Lode Holdings and its shareholders or for providing advice in relation to any transaction or arrangement referred to in this announcement. Neither Allen & Overy, Soreinen law offices nor Hansabanka Banka will be offering advice nor will either of them be responsible for providing the protections afforded to clients of Allen & Overy, Soreinen law office and Hansabanka to any person on the content of this announcement or on any transaction or arrangement referred to in this announcement. This announcement appears as a matter of record only. It does not constitute an offer to buy or sell securities. Any such offer would only be made pursuant to a public tender offer document approved by the Finance and Capital Markets Commission.
Lode A/S - Sale of 82.8% Controlling Stake
| Source: Lode