HIGHER PRICES OF BREAD AND FLOUR IN BOSNIA FROM FRIDAY,JANUARY 11

SARAJEVO, Bosnia (January 10,2008) – Klas bread company announced that white flour and wheat bread, 400 grams weight, from Friday January 11 will cost 0.90 Bosnian Marks instead of 0.70, while flour prices, depending on the type shall be higher by 11 to 30%.

”Klas” General manager Ibrahim Smajlagic stated at the press conference in the Bosnian capital Sarajevo that they had to adjust the prices of standard bread because of constant rise in prices of wheat in the world market, as well as rise in energy prices, but also because the FBiH entity government did not fulfil the agreement on selling 2.000 tons of wheat monthly from the goods reserve at intervening price of 330 Bosnian Marks per ton.

He also added that VAT is also added in this new price and that the management of “Klas” took into consideration purchasing power of the Bosnian citizens.

He reminded us that “Klas” did not change prices of standard types of bread for almost two and half years, regardless of the financial effects to the company and its 1.300 employees, but these steps became necessary after all internal reserves were spent.

“Klas” shall put its maximum effort to ensure continued supply of the market with its products, and to keep these new prices from changing in the following period.

Yearly, “Klas” processes around 25.000 tons of wheat which is mostly imported from Croatia,Austria, Hungary, Russia, Argentina, Canada and the United States.