Trigon Agri Interim Report January - June 2008 Executive Summary The total revenue and fair value gains for the Group for the reporting period amounted to EUR 20,132 thousand (EUR 6,375 thousand in first half 2007). The Group's revenue and other income for the reporting period was in the amount of EUR 6,704 thousand (EUR 1,469 thousand in first half 2007). The operating profit for the reporting period amounted to EUR 4,654 thousand (EUR -46 thousand in first half 2007). Net profit for the reporting period amounted to EUR 4,456 thousand (EUR -85 thousand in first half 2007). The accounting policies used by the Group involve the immediate expensing of all field improvement works (as opposed to capitalisation). Such a conservative approach has lowered the result of the Group for the reporting period but is going to have a positive effect on future reporting statements. 1H 2008 was a period of significant developments for A/S Trigon Agri. The Group continued its active expansion strategy in accordance with the targets previously communicated to its shareholders and is currently in the process of harvesting over 69,000 hectares of land in its four cereals and two dairy clusters of operation. The total land area taken under control by the Group as of the date of this report stands at 144,000 hectares, out of which close to 140,000 is located in the Black Earth regions of Ukraine and Russia and is earmarked for cereals production, the rest being related to the dairy clusters outside of St Petersburg and in Estonia. The Group is well on the way with the required preparatory works in order to take the total harvested area to 200,000 hectares in 2009. In parallel to land expansion, the Group has been moving forward as planned with the restructuring of the acquired agricultural operations and with showing the targeted improvements in yields. In the Harkov cluster in Ukraine, where the Group is operating for the second full year and where all fields were prepared and seeded by the Group itself, the productivity results are expected to come in better than targeted in A/S Trigon Agri's so-called ‘ramp-up' schedule for a typical second year of operations. In the other three clusters the Group took land under control over winter and spring 2007/2008 and thereby the overwhelming majority of the required field preparation and seeding (including seed selection) was carried out by former land operators. Nevertheless, the expected results in these clusters look better than expected by the management but given that the Group could not control the quality of the field-works and seeding of the former owners, the results, as announced previously, will stay significantly lower than what could have been achieved had the Group carried out all the field-works and seeding itself. Overall results show clearly how dramatic the yield improvements can be on fields fully prepared by the Group versus fields prepared by local farmers. The weather conditions for the production clusters of the Group have overall been favourable without any weather extremes such as droughts or flooding. However, the results for the Harkov cluster of the Group have been lowered by the strong rainfalls at the end of the harvest period, which has resulted in higher than expected harvesting losses and lower wheat quality. Nevertheless, in addition to exceeding its overall ‘ramp-up' schedule targets, the Group's best wheat fields in Harkov to date have achieved productivities as high as 8.78 tonnes per hectare and barley fields as high as 6.61 tonnes per hectare. This gives further evidence of the high quality of soil in the Black Earth region and gives management continued strong confidence in its ability to achieve or exceed its stated yield improvement targets. As an important part of its strategy the Group has continued aggressive expansion of storage capacity. The acquisition of three rail-road connected elevators in Ukraine added a total of 272,200 tonnes of storage capacity and took the current storage capacity of the Group to 322,200 tonnes in Ukraine. An ongoing current investment program for add-on expansion of the current storage sites will further expand the existing storage facilities to a total of 422,000-472,000 tonnes, depending on the final technical solutions to be chosen for the technical construction projects. Meanwhile, the Group has secured sufficient storage for its produce in Russia through entering into storage rental agreements and is actively negotiating to acquire further elevator capacity also for its Russian production clusters. In parallel to storage capacity acquisition, the Group took one step further in its strategic goal of becoming an integrated soft commodities producer, storage provider and trader, with the signing of a joint venture agreement with Ramburs Group on April 7, 2008. Ramburs Group is a leading independent trading company in Ukraine having international grain trading experience dating back to 1995 and has shifted all of its grain trading activities into the joint venture. The implementation of the joint venture operations are currently proceeding as planned. The 2008/2009 trading year as the first year of joint operations will be managed conservatively with limited trading activity. The business plan of the joint venture will be reviewed prior to its second year of operations in order to take a decision on potential further expansion of the trading activities. The joint venture is 51% controlled by A/S Trigon Agri. In the dairy farming clusters of the Group in Estonia and North-Western Russia, the previously announced investments have been proceeding as planned. Following the completion of scheduled investments in Estonia in year-end 2007, the Group completed the construction of the first phase of the large-scale dairy unit close to St Petersburg in north-western Russia with a cow-shed for 600 milking cows where milk production commenced in April 2008. The current site will be further expanded to 1,080 milking cows by the end of 2008 and to 1,620 by the end of 2009. Preparations are ongoing for the start of dairy construction projects in the Group's southern production clusters in the Black Earth region in order to launch dairy farming activities to complement the cereals operations. On the financing side, despite the turbulent market conditions, the Group managed to successfully carry out a EUR 105 million equity capital raising on May 6, 2008. The issue was subscribed by over 60 investors, which included internationally well recognised institutional investors and family offices. The capital raising was a significant further step for the Group and provided the required financial platform in order to continue realising the Group's expansion targets. For further information please contact: Mr. Ülo Adamson, Chairman of the Board of Directors of A/S Trigon Agri Tel: +372 66 79 200 E-mail: mail@trigonagri.com About Trigon Agri A/S Trigon Agri A/S is an integrated leading cereal and dairy commodities company with operations in Ukraine, Russia and Estonia. Trigon Agri A/S shares are traded at the First North stock exchange in Stockholm, an alternative market place of the OMX Nordic Exchange. Trigon Agri A/S is managed under an advisory agreement by AS Trigon Capital, a leading Central and Eastern European investment and corporate advisory firm with more than USD 1 billion of discretionary assets under management.