Dear Shareholders,

The Management Board of AS VALMIERAS STIKLA ŠĶIEDRA would like to inform that considering the operation and performance of our subsidiary P-D VALMIERA GLASS USA Corp. in the first 6 months of 2018, the net result forecast of VALMIERA GLASS GROUP is decreased to 5 mil. loss by the end of the year.

The companies in Latvia and the UK have reached their profit budgets and continue to believe that this will be the case at the end of the year. Nevertheless, these good results cannot offset the significant start-up loss of the USA subsidiary.

These start-up losses result from exceeding the investment budget and from a delay in commissioning the production facilities. The management has taken action early and expects continuous improvement by the end of the year. The turnaround of the operating result of the P-D VALMIERA GLASS USA Corp. is predicted for December 2018.

The resulting situation of the USA company also has an influence on the financial situation. The Executive Board is currently negotiating with banking partners and major shareholders to provide additional liquidity.

The Management Board of AS VALMIERAS STIKLA ŠĶIEDRA

Contacts:
VALMIERAS STIKLA ŠĶIEDRA, AS
Phone: +371 64202216
E-mail: latvia@valmiera-glass.com
For more information about the company: www.valmiera-glass.com