LUXEMBOURG/ZNOJMO (August 30, 2012) – Based on unaudited results PEGASNONWOVENS SA (hereafter "PEGAS" or "Company"), a leading Europeanproducer of nonwovens textiles, recorded EBITDA of EUR 17.6 million in thefirst half of 2012 and confirms its full year EBITDA guidance.

In the first half of 2012 consolidated revenues reached EUR 92.3 million, up by 11.7%yoy. The total consolidated revenues in the second quarter of 2012 were EUR48.0 million, a 15.4% increase compared with the same period last year. This increasewas the result of increased volumes of sold production thanks to the new production line,which was put into operation in the second half of 2011.

Operating profitability before depreciation and amortization, interest and taxes measuredby EBITDA was EUR 17.6 million, up by 15.0% yoy. The year on year EBITDA increasewas achieved namely due to the contribution of the new production line. However, theyear on year comparison was negatively affected by a higher number of plannedmaintenance breaks and changes in inventories of finished goods. EBITDA amounted toEUR 8.1 million in the second quarter of 2012, up by 15.2% yoy thanks to the alreadymentioned production output from the new production line.

In the first half of 2012 profit from operations (EBIT) amounted to EUR 11.4 million, upby 3.4% over the same period in 2011. In the second quarter of 2012 profit fromoperations increased by 2.3% to EUR 5.0 million. The increased profit from operationswas positively affected by the growth of EBITDA and negatively affected by a higher levelof depreciation and amortization.

In the first half of 2012 net profit reached EUR 9.1 million, down by 15.5% yoy, primarilydue to lower unrealized foreign exchange gains. In the second quarter of 2012, theCompany recorded a net profit of EUR 0.4 million, down by 89.8% compared with thesame period in 2011. This decrease was caused by unrealized foreign exchangedifferences in the compared periods.

"In the second quarter of this year we achieved a year-on-year EBITDA increase of over15%. The production from the new production line that was put into operation in thesecond half of last year significantly contributed to this growth. We also positivelyregister the reversal of the unfavourable polymer price development that occurred at thestart of the year. The decline in the price of our main input raw materials recorded inrecent months will provide considerable support to the financial results in the thirdquarter. The solid operating results achieved in the first half of the year and the positiveoutlook for the subsequent months provide us with the opportunity to focus our effortsand resources on the achievement of the Company's strategic objectives.

PEGAS is now entering a very important period. Construction works on the Egyptian plantare proceeding according to our time schedule and in a few weeks time we will startinstalling the production technology. We are well aware that the successful execution ofthe Egyptian production line project will play an important role in the future developmentof the Company and for this reason, at the current time, this project is of the utmostpriority for us", said František Řezáč, CEO and member of the Board of Directors ofPEGAS NONWOVENS SA.

Consolidated Financial Results of PEGAS NONWOVENS SA for the Second Quarter andFirst Half of 2012.

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