Deva Holding A.S. announces restart of construction at Cerkezkoy
plant and rapid resolution of administrative fine
London, 05 October 2007 - Hereunder is the announcement made today by
EastPharma's subsidiary Deva Holding A.S. to (the Administration of
Istanbul Stock Exchange in accordance with the Capital Markets
Board's communiqué serial VIII, No:39) the Istanbul Stock Exchange:
* Construction of new solid production plant restarted at Cerkezkoy
site as of today
* New solid production plant expected to be completed within original
time frame
* Cash settlement of fine leads to reduced consideration
"Deva Holding A.S., ("the Company"), in which Eastpharma Ltd owns
100% A shares, 92.00% of B shares and 86.43% C shares, is pleased to
announce that it has restarted the building of its new solid
production plant, which was halted on July 30th, 2007. The Company
also announces a rapid resolution of the administrative fine imposed
on one of the sections of its production plant located in the town of
Cerkezkoy by the Tekirdag Governorship Provincial Environment and
Forest Directorate, as previously announced on 14 September 2007. As
part of the settlement with the aforementioned Directorate, the
Company has resolved all environmental legislation requirements
related to the fine.
By paying in cash, the Company has benefited from a 25% discount to
the original fine consideration of YTL 2,700,000, reducing the net
cost to the Company to YTL 2,025,000 (approx USD 1.67m).
Baki Taskiran, CEO of EastPharma, said: "We are very pleased that the
building of the new solid plant at Cerkezkoy has restarted and,
following discussion with our building contractors, we expect a delay
in the construction for this part of the new production site, however
this delay will be ccompansated and we will complete the relocation
within the original time frame, by the end of March 2008. The issues
relating to the fine for one of the sections of the Cerkezkoy
production plant took place in early 90s, and therefore well before
EastPharma acquired its controlling stake in the Company in 2006.
EastPharma is fully committed to best practice in fulfilling its
environmental requirements and as soon as we were notified of the
fine we took speedy action to address the matter. I am very pleased
to announce a rapid resolution to this issue".
For further information, please contact:
EastPharma Limited
Idil Bora - Investor Relations
Tel.: + 90 (212) 6929326
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