Pieno Zvaigzdes AB, unaudited financial results for the first 3 months of 2010

Restrictions in export markets resulted in lower performance

Based on preliminary unaudited results Company‘s sales over first three months
in 2010 reached LTL 124.4 million (EUR 36.0 million), 13% less compared to a
year ago (Sales resulted in LTL 143.6 million (EUR 41.6 million) in I quarter
2009). Temporary restrictions in export markets (restricted exports of dairy
products to Russian Federation in January, February 2010), high raw milk price
and lower product prices had the major impact on Company's financial results.
Export sales decreased by 25% compared to a year ago to LTL 53.8 million (EUR
15.6 million) and accounted to 43% of total proceeds over the period. 

I quarter 2010 Company's EBITDA accounted to LTL 6.2 million (EUR 1.8 million),
operating cash flows accounted to LTL 25.1 million (EUR 7.3 million), the
Company reported a loss of LTL 5.2 million (EUR 1.5 million) compared to net
profit of LTL 3.9 million (EUR 1.1 million) earned in I quarter 2009. 

The Company‘s Board is positive of financial result reached in I quarter 2010
taking into account increased raw material price, restrictions in export
markets, implementation of cost optimisation program and reduced financial
debt. 

With respect to financial results reported in I quarter and expected market
trends in II quarter 2010 the Company‘s management is amending forecast for
year end 2010 results: expected sales of LTL 625 million (EUR 181.0 million),
expected net margin just below 3%. 


Audrius Statulevicius
CFO
(+370 5) 246 1419