ESTABLISHMENT OF RUSSIAN SUBSIDIARY

Kilkis, January 2nd 2013

KLEEMANN proceeded in establishing a subsidiary company in Moscow, named KLEEMANN LIFTS RUS, aiming to further strengthen its presence in a key and promising market.

As a matter of fact, for the past two years that the representative office of KLEEMANN in Moscow is operating, Russia became the number one market for the parent company in terms of turnover, with the current year already being increased 77% compared to last year.

The initial share capital of the new subsidiary amounts to 10 million rubles (approximately 250,000 euros), and the shareholders are the subsidiary of KLEEMANN in Cyprus, KLEEMANN INTERNATIONAL HOLDINGS LIMITED (99.5%) and Koukountzos N. Nikolaos (0.5%), general manager and shareholder of the parent company. It should be noted that according to Russian law the creation of LTDs with sole proprietorship is prohibited so it was impossible for the Cypriot subsidiary to own 100%.

The purpose of the new company is the trading of complete elevator systems as well as the promotion of the overall product range of the Group in the fast growing market of the countries of the former Soviet Union. Through the operation of the Russian subsidiary, the management of KLEEMANN expects significant strengthening of its international sales as well as the penetration of new markets in the region.

It is noted that today KLEEMANN has international subsidiaries in Turkey, Cyprus, Romania, Serbia, England, Hong Kong and China, while representative offices operate in Poland, Germany and Dubai.