CFO of JSC VSŠ speaks to Riga Stock Exchange conference “CEO Meets Investor 2008”

On Wednesday, October 22, Mr Imants Saulītis, CFO of JSC Valmieras stikla
šķiedra, held a presentation to the annual investment conference of Riga Stock
Exchange "CEO Meets Investor 2008". During his speech, he addressed topics that
are highly important under the current complicated market circumstances. 

JSC Valmieras stikla šķiedra have sufficiently diversified their sales risk by
supplying a diversity of glass fibre consumers and processors: the company
services 350 entreprises in 29 countries. Thus we do not fear to lose a
customer, as it would not be devastating to the company. 

Mr Saulītis informed that in 8 months 2008 we sold 37% of our products in
Germany, 11% in the USA, 7% in Italy and Russia each. The role of the Russian
market has recently increased significantly (grown from 2%), and the company
pays much attention to it. 

About 4% of the global glass fibre output is produced in Latvia today. Being
aware of the competition coming from Asia, JSC VSŠ carefully watches
developments in China and evaluates their potential influence on our sales
volume. 

For 2008, JSC VSŠ has planned investments about 3.9 million lats (EUR 5.5
million), next year we intend to invest about 4.75 million lats (EUR 6.76
million), and 1.89 million lats (EUR 2.69 million) in 2010. 

Mr Saulītis informed the conference that one of our most important issues today
is the cost of our products. It is therefore that we have chosen to purchase
electricity from Estonian company "Eesti Energia", and that we work on the
implementation of new technologies in order to decrease electricity and gas
consumption. 

A large investment planned for next year concerns the decrease of gas
consumption: the glass furnace built in 2001 is to be reconstrued. After the
reconstruction, the furnace will run more energy-efficiently, and its output
will increase by 50%. 

Although energy and personnel costs increase, JSC VSŠ does not intend to
increase its prices: If the company means to remain competitive on the global
glass fibre market, we cannot afford to do so. The single possible way to
increase production prices is higher processing and increased added value. 

JSC VSŠ plans neither to dismiss employees. Currently, there are almost 900
employees, which number is not to decrease. JSC VSŠ even invites new employees
with appropriate professional education, and attraction of qualified staff is
one of our current topics. 

It is known that the chief occupation of JSC VSŠ is the production and sales of
glass fibre products. JSC VSŠ, the only Baltic glass fibre producer, hopes to
end the year 2008 with a net profit of 800.000 lats (EUR 1.14 million) and a
turnover of 41 million lats (EUR 58 million). If we succeed, then our profit
would increase several times when compared to 2007, while our turnover would
increase by appr. 10%. 

The shares of JSC "Valmieras stikla šķiedra" are quoted on the Second List of
Riga Stock Exchange. The largest shareholders are German glass fibre producers
"P-D Glasseiden Oschatz GmbH", holding 45,3% shares, and "Vitrulan
International GmbH" with 36,2% shares. JSC VSŠ has no information that these
two shareholders plan to increase their share of ownership. Total share capital
of JSC VSŠ amounts to 23.903 million lats (EUR 34 million). 


JSC Valmieras stikla šķiedra
Controller
Lauma Tjuniņa
Phone 	+371 64202222
Mobile +371 26441429
Fax   	+371 64281216
lauma@vss.lv