Pieno Zvaigzdes AB, unaudited financial results for the first 6 months of 2010

Based on preliminary unaudited results Company‘s sales over first half year
2010 accounted to LTL 273.4 million (EUR 79.2 million), 9% less compared to a
year ago. Sales resulted in LTL 299.9 million (EUR 86.9 million) over I half
year 2009. High raw milk price and vague export markets had the major impact on
Company's financial results. Export sales decreased by 16% compared to a year
ago to LTL 127 million (EUR 36.8 million) and accounted to 46% of total
proceeds over the period. 

Over first half of the year Company's EBITDA accounted to LTL 20.8 million (EUR
6.0 million), operating cash flows accounted to LTL 37.5 million (EUR 10.9
million), the Company reported a loss of LTL 0.8 million (EUR 0.2 million)
compared to net profit of LTL 6.6 million (EUR 1.9 million) earned over I half
year 2009. 
However the II quarter of 2010 generated a profit of LTL 4.4 million (EUR 1.3
million). 

The Company‘s Board is positive of financial result reached in I half year 2010
taking into account difficult start of the year, untypically high raw milk
price, lower export proceeds balanced by implementation of cost optimisation
program and maintained stable level of financial debt. 

With respect to financial results reported in I half year 2010 and expected
market trends in II half year 2010 the Company‘s management is staying with the
initial forecast for year end 2010 results: expected sales of LTL 625 million
(EUR 181 million), expected net margin between 2 - 3%. 


Audrius Statulevicius
CFO
(+370 5) 246 1419