1. INVESTMENT PROGRAMME 2008-2009 MONBAT PLC - Sofia

2. INTRODUCTION: MONBAT PLC IS THE FASTEST DEVELOPING MANUFACTURER OF ACCUMULATOR BATTERIES FOR VARIOUS APPLICATIONS IN SOUTH- EASTERN EUROPE

3. STRATEGIC PURPOSE: Increasing the competitiveness of MONBAT Plc and taking a position among the first three biggest companies in the accumulator batteries’ business in Europe INVESTMENTS WILL BE MADE IN THE FOLLOWING DIRECTIONS: Increasing the production capacity and reaching a capacity of 3 100 000 starter batteries per year until July, 2009 compared to 1 200 000 in 2006. Doubling the production capacity for telecommunication, stationary batteries to the number of 200 000 until the end of 2008. Establishment of a new company in the city of Dobrich for production of traction batteries for electric trucks as in 2009 will be produced 250 000 elements and during the two following years the capacity will reach 750 000 elements. Modernization of the production in MONBAT Plc and START JSC – replacement of old machines and increasing the possibilities for formation of accumulator batteries. A Program for attracting young and promising engineers which includes construction of 45 apartments to be given to them for no cost after the expiration of their long-term contracts.

4. TOTAL AMOUNT OF THE INVESTMENTS TOTAL AMOUNT OF THE INVESTMENTS FOR 2008 AND 2009 BGN 64 200 000

5. Increasing the production capacity of Monbat Plc and Start JSC– BGN16 400 000, divided as follows: 2008 – BGN 2 400 000 2009 – BGN14 000 000 Modernization of the production in MONBAT Plc and START JSC 2008 – BGN 1 900 000 Doubling the production capacity for telecommunication, stationary batteries 2008 – BGN 1 100 000 MAIN FIELDS OF INVESTMENTS 2008 – 2009

6. Factory for old accumulator batteries recycling in the Republic of Serbia 2008 - BGN 7 000 000 Put in operation period – July, 2008 Factory for old accumulator batteries recycling in the Republic of Romania 2008 – BGN 13 400 000 Put in operation period – October, 2008

7. MAIN FIELDS OF INVESTMENTS 2008 – 2009 Modernization and increasing the production capacity of the factory for old accumulator batteries recycling in Montana 2008 - BGN 2 400 000 Put in operation period – July, 2008 Establishment of a new company in the city of Dobrich for production of traction batteries for electric trucks with BGN 31 000 000 total amount of the investment. The production capacity will reach 750 000 traction elements until 2010. 2008 – BGN 10 000 000 2009 – BGN 11 000 000 2010 – BGN 10 000 000

8. MAIN FIELDS OF INVESTMENTS 2008 – 2009 A Program for attracting young and promising engineers. 45 apartments will be built under this Program which will be given to the engineers for no cost after expiration of their long-term contracts with MONBAT Plc. 2008 – BGN 1 000 000 Put in operation period – December, 2008

9. FINANCIAL PROVISION OF THE INVESTMENTS 2008 – 2009 BANK LOANS – UP TO BGN16 000 000 OWN RESOURCES, LEASING AND/OR BOND ISSUE – BGN 48 200 000