Pegas Nonwovens announces that it has commenced construction works on the Egyptian production plant project.

After meeting all the necessary conditions and administrative requirements the Company was issued a building permit in January of this year. Subsequently construction works started on the production and warehouse building. The installation of production technology is scheduled for the fourth quarter of this year.

"We are very pleased with the continuing progress of this investment project. The project is proceeding according to the planned time schedule and with respect to the budget we have not registered any major deviations from our plans. We will soon start recruiting the first of our Egyptian employees and based on the experience gained so far, we are convinced that the Egyptian plant will be an attractive opportunity for talented and ambitious employees. The plan remains on course and we should launch the production line in the second half of next year. We believe that we will continue to bring our shareholders positive news about the project's developments" said Frantisek Rezac, member of the Board of Directors of PEGAS NONWOVENS SA and CEO of PEGAS NONWOVENS s.r.o.