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Acron Holding posts consolidated RAS statements for H1 2007

Acron reports consolidated revenue up 15.7% year-on-year to RUB 14.560 billion, against RUB 12.585 billion in 2006. Production costs were RUB 8.702 billion, up 19.6% from RUB 7.237 billion last year. The Holding’s profit on sales rose to RUB 3.729 billion, up 9.7% from RUB 3.400 billion the same period of the previous year.

Net profit for H1 2007 was RUB 1.824 billion. This figure was influenced by the marked to market revaluation of the Holding’s financial investments, which resulted in a loss of RUB 428 million. Net profit excluding the revaluation was up 12.2% year-on-year to RUB 2.252 billion from RUB 2.007 billion.

JSC Dorogobuzh saw particularly strong performance this year. Its consolidated revenue for H1 2007 was RUB 3.654 billion, up 24.8% from RUB 2.927 billion last year. Profit on sales increased 28.8% to RUB 871 million against RUB 676 million in 2006.

Dorogobuzh’s net profit was down RUB 477 million, to RUB 126 million, due to the revaluation of financial investments at market value in the first half of 2007. Net profit excluding the revaluation reached RUB 603 million, up 44% from RUB 419 million in 2006.

According to Acron Vice President Alexander Popov, “the companies in the Acron Holding have performed well this year despite negative external effects. The cost of raw materials outpaced inflation in the first six months of 2007. As a result, production costs at our Russian facilities were up 20%. The weakening U.S. dollar is another significant factor influencing the Holding’s performance, since a considerable share of our revenue is received in dollars. To mitigate these external factors Acron has improved its sales policy, diversifying the product mix and sales geography. These moves helped our companies improve their financial standing. Dorogobuzh showed consistent progress and will not slow down for overhauls this year.”

The Holding’s full consolidated financial statements for the first six months of 2007 are available at /investor_annual_en.html.