1. Investment Programme 2007-2008 «MONBAT» PLC - Sofia

2. Introduction:
„MONBAT” PLC is the fastest developing company, manufacturer of accumulator batteries in South- Eastern Europe
The average temp of profit growth for the last 3 years is above 50 %
For the last year the increase in sales is 64 % compared to 2005 /table 1/

3. Table 1

4. STRATEGIC PURPOSE: Increase in the competitiveness of «MONBAT » and reaching the top 5 for the companies in the accumulator battery business in Europe
To achieve our goal we intend to:
Increase in sales with up to 120% until 2009 compared to 2006
Increasing the Nett Profit with up to 320% until 2009 compared to 2006
Increasing the profit before taxes, interests, depreciations and amortizations (EBITDA) with up to 225% until 2009/table 2/
Increase in production and reaching a capacity of accumulator batteries until 2009 compared to in 2006

5. Table 2

6. To achieve the economic goals we want, we have not only to increase the production, but also to considerably reduce the cost of the output
The main expense in the accumulator batteries production (more than 55%) is the cost of lead, lead alloys and polypropylene;
The raw materials covered from our own production is – lead and alloys 40% in 2007, 28% in 2008 and only 23% in 2009 (with the expected increase in sales);
After the completion of our investment programme «MONBAT» PLC will increase the share of raw materials covered by our own production to 72% in 2008 and 91% in 2009
The recycled polypropylene in 2009 will be 90% from the quantity «MONBAT» PLC needs;
The lead and alloys recycled in our own factories are between 30-40% cheaper from the international prices. The recycled polypropylene is 50% cheaper.

7. GENERAL DIRECTIONS
The Investment amount for 2007 – 2008 is €
Increasing the production capacity up to accumulator batteries per year
To achieve this goal the needed investments are € distributed as follows:
2006 – €
2007 – €
A factory for recycling old accumulator batteries in Serbia with a capacity of metric tons of lead and lead alloys and 650 metric tons of polypropylene regranulate –
2006 – €
2007 – €
2008 – €
Starting date for the factory – march 2008 г.

8. A factory for recycling old accumulator batteries in Romania with a capacity of metric tons of lead and lead alloys and 750 metric tons of polypropylene regranulate – €
2007 – €
2008 – €
Starting date for the factory – June 2008
Modernization and increase in the capacity of the factory for recycling of old accumulator batteries in Montana, Bulgaria – €
2007 – €
2008 – €
Starting date for the factory – April 2008

9. A program for attracting new and promising young engineers – 456 000 €
This program will include the building of 45 apartments for the engineers. The apartments will be given to them for no cost after the expiration of their long-term contracts with «MONBAT» PLC
Completion date – December 2007

10. Financial Security for the investments
10 – year investment bank credit for €
Own capital €
Operational Financing – €