BULGARIAN CHAMBER OF COMMERCE AND INDUSTRY

The KNAUF group continuously imlpements high-tech production in Vidin

Mr. Manfred Winkler, CEO of the KNAUF enterprise group, Austria, was awarded a honorary diploma and Hermes statuette for his extraordinary personal contribution to the development of the Bulgarian - Austrian relationships and the implementation of high-tech production in KNAUF Gipsfazer Plc., Vidin - an enterprise bought by KNAUF. Mr. Winkler received the award personally at a ceremony in the BCCI.

Thanks to the investment of over 20 billion German marks spent in an ambitious program for the modernisation of the production and qualification of the personnel, over 95% of the production is currently being exported to the European Union. The Vidin plant produces gipsfaser wall and floor elements under the own trademarks Vidawall and Vidafloor.

In the conversation, Mr. Winkler mentioned the main problems the Vidin plant is facing - the necessity to free the traffic on the Danube and the normalisation of the trade relationships with the deliverant of raw materials, Gips Plc. - Koshava.

In Bulgaria, the ambitions of Knauf are targeted towards implementation of their production for repairing of old buildings. The concern already has invested in the re-construction of a villa in the Sofia quarter of Ovcha kupel where it would like to open a vocational training school. KNAUF will invest further over 1 billion German marks for the modernisation of the production of KNAUF-Gipsfaser Plc. in January, 2002.

Mr. Winkler donated the amound of EUR 1000 for the children of Home Nr. 7 in Sofia.

17 December 2001