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The Government of the Republic of Serbia

In the service of citizens

“Fabrika Vagona Kraljevo” sale contract signed

Belgrade, 7 April 2006

The Serbian Privatisation Agency has stated that yesterday its representatives signed a sale contract with representatives of the sole bidder in the tender, the Industrial Association of Donbas based in Donetsk, Ukraine. The contract concerns the sale of 70.95% of the capital of the holding company “Fabrika Vagona Kraljevo”.

The purchase price was €200,000, with an investment programme worth €6.454 million; apart from the minimum obligation from the company’s social welfare programme, the buyer also unconditionally accepted an array of additional obligations regarding the social programme.

At the tender for “Fabrika Vagona Kraljevo”, announced on March 31 in 2005, the sole bid was submitted by the Industrial Association of Donbas, based in Donetsk, Ukraine.

At the commission’s second meeting, held on November 4 in 2005, a decision was passed on beginning negotiations with the sole bidder, and the Serbian Ministry of Economy passed a Solution on November 11 in 2005 on forming a three-member commission for negotiations.

The commission for negotiations passed a decision on concluding the sale contract of the capital of the holding company “Fabrika Vagona Kraljevo” after six sessions.

At the third session of the tender commission, held on March 27 in 2006, the results of the negotiations were accepted and a unanimous decision was made to conclude a contract for the sale of the capital of the company “Fabrika Vagona Kraljevo” with the sole bidder the Industrial Association of Donbas, reads the statement.