Actuality November, 27, 2007.

As the press-service of Nestle Company reported, “Nestle Russia” is going to acquire Ruza Confectionary Factory (RKF), producing chocolate and sweets of the premium segment under the “Comilfo” and “Rusanna” trademarks.

Accord ing to the company

information, Nestle is going to invest into expansion of production capacities of the confectionary factory, located in Ruza town of Moscow region.

As Bernar Menje declared, the general director of “Nestle Russia” company, “Nestle” will strengthen the positions at the market

of chocolate confectionery in Russia with the factory acquisition.

The terms of transaction are not disclosed, but analysts suppose that Nestle will get the controlling stock interest of the enterprise priced at about $200 mln, and will pay the considerable sum for “Comilfo” brand.

The company expectations are quite met, because the RKF is presented in many Russian regions; last year the company sales made up $51 mln. According to the predictions, the increase will make up more than 40% this year.

It is not the first “chocolate” attempt of powers exp

ansion for a month.

At the end of November it became known also, that Russian “Krasnaya Zarya” began the construction of new buildings in Ivanovo on means given by Russian Agricultural Bank (about RUR1,9 bln). This credit was given to the company for 8 years; the grace period for principal redemption makes 3 years.

The credit will be used for the foreign equipment installation of

the factory, and also for construction of new production capacities of the enterprise. Construction of modern laboratory is planned on the factory, which will control the quality of raw material and outputs.

Generally, the factory would produce about 14,2 tons of chocolate per year, and the output on full capacity would become possible in 3 years.

“Krasnaya Zarya” plans to occupy about 3% in the sweets segment and about 1% in the wafer products segment on

the Russian market.