OREANDA-NEWS. On 25 June 2008 JSC Acron, a leading Russian and global mineral fertiliser producer, listed on the Russian stock exchanges MICEX and RTS under the ticker AKRN, announced its consolidated IFRS results for the year ended 31 December 2007.

2007 Highlights:

Financial:

•  Revenues increase to RUR 31.11 billion or US\\$ 1.27 billion (2006: RUR 23.63 billion or US\\$ 0.90 billion);

•  EBITDA increase to RUR 8.66 billion or US\\$ 0.35 billion. (2006: RUR 4.65 billion or US\\$ 0.18 billion);

•  EBITDA margin was 28 % from prior year figure of 20% ;

• Net profit increase to RUR 5.67 billion or US\\$ 0.23 billion (2006: RUR 2.46 billion or US\\$ 0.09 billion);

Note: Basic exchange rate was US \\$ 1 to RUR 24.5462 in 2007 and US \\$ 1 to RUR 26.3311 in 2006

Operational:

•  6 % growth of total fertiliser sales to 4.4 million tonnes (2006: 4.1 million tonnes).

•  A new production of liquid fertilizer urea-ammonium nitrate of up to 500,000 tonnes a year was launched;

•  The Group continued implementing its strategy of product diversification through significant increases in the production of non fertilizer products including methanol, formalin and urea-formaldehyde resins;

•  Acron entered a new five year agreement with Gazprom to secure natural gas supplies;

•  The Group continued to expand its Kaliningrad and Silamae (Estonia) port facilities adding significant transportation and logistics capacities.

Commenting on the results, Alexander Popov, Chairman of the Board of Directors, said:

“I am very pleased to report annual results for the Group. 2007 was a very successful year for Acron, with the combination of favourable market conditions, growing production and tighter cost control contributing to the Company’s strong operational and financial results.

During 2007 we saw our investments paying off as the urea-formaldehyde resin production expanded to full capacity. Last year we launched liquid fertilizers production at the Veliky Novgorod site. Hongri Acron also reached full capacity at its new methanol unit.

Our last years results have been very encouraging, and in the next 12 months we plan to continue working towards expanding production capacities, diversifying our product mix and building strong vertically integrated operations.”