Urmas Juhvelt

Väätsa Agro has developed a solid growth strategy that builds on its operational excellence. The Group's management has developed a clear strategy to capture the current positive dairy market trends: In 2009, Väätsa Agro will complete the construction of its new integrated production complex and will consolidate its milking cows to a single location. The production complex will also include milk powder production and bio-energy plant. By 2011, the Company plans to complete its upstream expansion into milk-powder production. This will enable Väätsa Agro to take advantage of the global shortage of dairy products and reduce its dependency on the regional dairy market. Installation of a bio-energy plant that will generate energy needed for milk powder production allows Väätsa Agro to promote environmentally friendly production, while reducing the milk powder production costs. Väätsa Agro will continue executing its growth strategy through pursuing strategic acquisitions of larger dairy farms in Estonia and other Baltic states that have either under-valued assets or can benefit from potential synergies created by such combination.