LUXEMBOURG/ZNOJMO, October 31, 2012 – PEGAS NONWOVENS (hereafter"PEGAS" or "Company") is responding to speculations about the potentialimpact of the decision by Kimberly-Clark to halt selling Huggies baby diapers inmost Western and Central European countries.
Kimberly-Clark is one of PEGAS's major customers and there is a large probability thatthis new information will have an impact on the volume of business conducted betweenboth companies. Nevertheless, publically available information that Kimberly-Clark willcontinue with its production at its plant in Jaroměř in the Czech Republic can be viewedas positive.
The decision by Kimberly-Clark to stop selling Huggies baby diapers in Europe haselicited various speculations about the impact of this on the Company's financialperformance. It is clear that this decision will affect the market share of the individualproducers of disposable hygiene products. PEGAS supplies nonwoven textiles to a wideportfolio of customers and so as was the case until now, it will continue to provideservices at such a level so as to remain the preferred supplier and to help its customersto grow.
PEGAS hereby announces that based on the currently known facts, it does not expect adecline in production volume or sales in 2013. The current state of sales negotiations for2013 indicates that as in prior years the production capacity of the Company should befully sold out.
The company will provide an update about the state of sales within the scope of theannouncement of the financial results for the third quarter of this year.
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