Amtel-Vredestein confirms sales, acquisitions with regulatory announcements

London -- Amtel-Vredestein NV (A-V) has confirmed a number of acquisitions and disposals with regulatory announcements on the London stock exchange. The company said it plans to, "sell or otherwise dispose of" its tyre factory in Krasnoyarsk and announced the sale of its carbon black factory in Volgograd. A-V also announced the acquisition of six tyre retail outlets in the Perm region of Russia. A-V also announced its intention to publish quarterly financial data, with the first such report due to be published before 30 April this year.

In a statement, A-V said, "The Krasnoyarsk plant is a Soviet-era facility that primarily produces truck, agricultural and "C" segment tires which do not fit with the company's current strategy of focusing on the production and marketing of high-margin A- and B-segment tires used, respectively, on premium and mid-range passenger vehicles. According to AV management, current demand for truck, agricultural and other specialized tires can be met through outsourced production." The company added, "AV hopes to find a buyer for the Krasnoyarsk facility and is sensitive to the issue of continuity for its management and employees."

In respect of the Volgograd carbon black plant, the company said, "AV has been subsidizing the operation of Amtel-Carbon in the amount of 400 million rubles annually. Though the sale price of the facility will produce an $11 million profit, inter-company charges will contribute to non-cash adjustments that will result in an approximately $3 million write-down for the year ending December 31, 2005."

In a third announcement, A-V said that its Amtelshimprom subsidiary has repaid a ruble bond in the amount of 600 million rubles ($20.8 million). The cash came from the proceeds of the company's listing on the London Stock Exchange in November, 2005.

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