On May 12, 2008 the Management Board of the Company presented its proposals to the Supervisory Board of Echo Investment SA regarding allocation of net profit disclosed in the Company’s financial statement for the financial year expiring on December 31, 2007 and proposed allocation of the Company’s profits earned during the preceding years.
The Management Board of the Company proposed that the net profit for 2007 and net earnings carried forward from the preceding years should be excluded from distribution to shareholders and allocated to supplementary capital of Echo Investment SA in its entirety for purposes of financing daily operations of the Company. The Supervisory Board of Echo Investment SA issued a positive opinion on the Management Board’s proposal.
On the basis of resolution no. 6 on distribution of profits carried forward, and resolution no. 7 on distribution of profit, the Ordinary General Meeting of Shareholders of Echo Investment SA decided to exclude the net profit earned by Echo Investment SA in the previous years and the net profit earned during the last financial year 2007 from distribution among shareholders and to allocate the whole amount of profit to supplementary capital for financing the company’s current operations. On the basis of resolution no. 6 on distribution of profits carried forward, and resolution no. 7 on distribution of profit, the Ordinary General Meeting of Shareholders of Echo Investment SA decided to exclude the net profit earned by Echo Investment SA in the previous years and the net profit earned during the last financial year 2007 from distribution among shareholders and to allocate the whole amount of profit to supplementary capital for financing the company’s current operations.