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Current report:

Change in issue price of L series Shares

Report number: 34/2008 day: 2008-09-12

The management of Barlinek S.A., based in Kielce, with reference to Current Report no. 33/2008 of September 5th 2008, hereby announces that, acting on the basis of § 1 pt 4 of Resolution 17 of the Ordinary General Meeting of Shareholders of Barlinek S.A. on June 27th 2008, Company Management took the decision on September 11th 2008 to change the issue price of L series Shares.

The issue price of L series Shares has been established at 1.40 PLN (in full: one zloty forty) per share.

The change in the issue price of L series shares is a result of a correction in the investment plans. Company Management originally intended to use the resources to build a plywood factory in Russia, continue development of the multi-layer board factory in Romania and purchase an ERP class integrated IT system.

Observing the economic events taking place in Russia in recent days, Company Management has reviewed its assessment of the economic environment connected with the planned project, and of the probable trends in Russia’s economy. Based on the specialist analyses available, and on its own reports, Management is convinced that it would not be expedient commence construction of the plywood factory, whose total cost may be assessed at around 400m PLN. The investment risk connected with the project is too great. Should the assumed economic parameters not be achieved, it would adversely affect the Company’s results and the shareholders would not receive the appropriate degree of return from the capital invested. During the coming months, Company Management will carefully monitor the macro-economic context of the project – paying particular attention to the construction sector. In the event of it becoming certain that external conditions do not constitute an above-average threat to the successful completion of the construction and operation of the plant and the sale of products, Management will return to the realisation of the suspended project. Management is convinced that the present fluctuations on the financial market are short-term in nature, and that Russia will remain a very attractive area for investment. Management believes in the long term presence of Barlinek on the Russian market, which is a natural field of expansion for the Company.

The assets raised from the issue of L series shares will be allocated by the Company for the modernization of the plant in Romania and increasing production capacity to over 1.6m m2 per annum. The remainder of the assets raised will be allocated to the introduction of the integrated ERP class system.

Management would like to state that the decision to change the issue price resulted from business analyses and concern for the money entrusted to the Company by shareholders, and was taken after previous consultation with the Company’s main shareholder, Mr Michał Sołowow.