OOO Vladpivo Ltd

completed

Pivoindustria Primoriva (PIP or the company) proposes to upgrade its facilities in Vladivostok and expand its current beer production capacity in two phases, from the present 720,000 hectolitres p.a. (“HL”) to 1.5 million HL. The company plans to complete phase 1 of the refurbishment and modernization of the brewery to begin beer production by the third quarter of 2006. Phase 2 will be completed by end 2008. The operation suffered from lack of investment over the last few years and is presently in poor operational state – including outdated equipment and inadequate occupational health and safety practices. The proposed project consists of refurbishing the facility to consistently brew and bottle high quality beer that competes well in the local market. Considerable modernization through procurement of new equipment and refurbishing work is planned to achieve beer production goals. Improvements in occupational health and safety, energy efficiency and water conservation will be implemented as part of the modernization program. Wastewater from the facility will be treated in a regional wastewater treatment facility.