OJSC "Power Machines" allocates 145 million US dollars for its investment program in 2007

On March 9, 2007 the Board of Directors of OJSC “Power Machines” approved the budget and the investment program of the company for the year 2007. It is estimated that the revenue from sales in 2007 will reach approximately 1 billion US dollars which will exceed by 1.5 times the showing for the year 2006. The allocations for the investment program in 2007 will amount to 145 million US dollars (the total amount spent for investments in the last 5 years amounts to 170 million US dollars).

The 2007 investment program will become the first stage of the over 1 billion US dollars long-term complex investment program currently being elaborated by OJSC “Power Machines” for the 5-year term.

The objective of the program is to turn OJSC “Power Machines” into a contemporary industrial enterprise with technologically upgraded and adequately diversified production facilities, to decrease production costs and make the company prepared to meet the demands of the Russian power generating companies in connection with implementation of the large-scale investment program in the power generating sector in 2007 – 2015.

Both the company’s equity capital and borrowings will be used as the sources of financing for the investment program. The Board of Directors instructed the General Director to elaborate a detailed plan of financing the long-term investment program, and, in particular, to provide suggestions on the parameters of the additional share issue to be conducted in 2007.