Gurin plans to step down from Amtel-Vredestein as losses mount

Moscow - Amtel-Vredestein NV said its chief executive, Alexei Gurin, plans to leave the Group to pursue new opportunities as soon as the terms of his resignation are concluded - which is expected to be at the time of the Company's AGM.

The company has appointed Petr Zolotarev to its Executive Board with the expectation that Zolotarev will succeed Gurin. Zolotarev is currently chief executive of Russian Machines and chairman of Gaz Group.

Vadim Pesochinsky, was also nominated to the Executive Board. He is acting vice-president at Yukos' refining and marketing business.

Sudhir Gupta, Chairman of its Supervisory Board and main shareholder led the search for a new head of the Company. He paid tribute to Gupta's contribution saying, "Mr. Gurin has accomplished his mission. He led the company through several critical acquisitions, including Vredestein Banden and the Moscow Tyre Plant, as well as the Company's listing on the London Stock Exchange. Recently the Company announced that it has begun testing tyres at the new factory at its Voronezh tyre complex, which will become fully operational later this year -- the last major step in the company's transformation to a modern production platform. We respect Mr. Gurin's desire to move on upon completion of this key milestone, and appreciate his willingness to support the company through the transition to new management,"

The announcements come as the company released its audited results for the year to December 2006. These results show the company in a slightly worse light than the unaudited version. Operating profit fell by 10 percent, to $33 million, compared with the unaudited $36 million while revenues were $817 million, rather than the suggested $823 million.

Amtel-Vredestein said the auditors had reclassified about $6 million-worth of revenues and costs and reduced the resserves held in the AV-TO retail subsidiary.