Following recent press releases related to the acquisition of Allseeds production assets, the Management of Kernel wishes to throw some light on potentially misleading information published by various press agencies. As announced in our current report No 31/2010 entitled “Exercise of call option for Allseeds acquisition”, the purchase of 94% of shares in Allseeds Group Public Co LTD (now under the new name of Corolex Public Co LTD) was brought to a successful and final conclusion on 22 June 2010, with all production assets of the former Allseeds group now under the firm and definitive control of Kernel. Recent press articles, under the guidance of the company Cross Trade Financial Limited (hereafter “Cross”), a minority shareholder, have alleged that the Allseeds transaction might still not be complete, or even that it could be reversed. For the sake of clarity, we confirm that our Company has no commitment whatsoever towards Cross, save for customary and legal obligations towards minority shareholders, and that any action undertaken by Cross would in no way affect the validity of the transaction. To date, no court proceedings have been initiated by Cross in Cyprus against Kernel to address any potential violation of minority rights, and the Company is confident that the Allseeds transaction was conducted and finalized in strict observance of applicable law. Regarding legal proceedings initiated in April 2010 in Ukraine by Mr Petrishe, a former minority shareholder of Allseeds group, and company “ZTK” in respect of the ownership of several land plots in the port of Nikolayev, Kernel is pleased to announce that it has successfully won the cases at all court levels including the Supreme Commercial Court of Ukraine, thereby conclusively demonstrating that claims against Kernel were groundless. As a matter of policy, Kernel does not report on court proceedings or legal matters considered as not material to the Company’s activity.