The Board of directors of Kernel Holding S.A. is pleased to inform investors on the settlement of the legal issues pertaining to the grain handling terminal controled by the Company. A full and final settlement has been reached with the party, with which arbitration proceedings were on-going. As a result of the settlement, a comprehensive agreement has been reached with this party and, in particular, no claims whatsoever can be brought against the grain handling terminal. Hence transfer from Namsen Ltd to Kernel Holding S.A. of the legal title to the grain handling terminal can now be effected. As disclosed in the current report dated 26 June 2008, the transfer of the grain handling terminal will be effected at cost, such cost to include expenses borne by Namsen Ltd in the arbitration process. With a sizable crop harvested in 2008 in Ukraine, Kernel stands to gain significantly from this landmark acquisition, and THE management confirms its expectations for the port in FY 2009: grain throughput in excess of 3 million tons and EBITDA contribution in the range of USD 20 million.
