Extensive farming development
01 February 2008
Quarterly consolidated financial report of financial year 2007/2008
15 February 2008

Kernel is pleased to announce the acquisition on 11 February 2008 of a large farming enterprise in the Cherkassy region, south of Kiev. The farm leases 8,558 ha of prime agricultural land, with lease terms ranging from 7 to 10 years. Among other valuable assets, the farm comprises a modern 60,000 tons storage capacity grain elevator commissioned in 2006. Total consideration paid for this new farming operation was USD 8.8 Mio. On the same day, we entered into a preliminary agreement to acquire another farm, also leasing 1,000 ha of prime land in the Cherkassy region. Land lease terms for this farm average 5 years. The total consideration to be paid in this transaction, which we expect to finalize by May, will be in the range of USD 400,000.