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25.03.08

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Concern Energomera to Become a World Market Leader in Sapphire Crystal Growing and Processing by Acquiring Atlas PCF

Stavropol, Russia – March, 14, 2008 – Concern Energomera (Energomera) announced today that it has signed an agreement to acquire all of the stock of Atals PCF (Atlas), another Russian synthetic sapphire manufacturer.

The acquisition is subject to Russian regulatory procedures and is expected to close in the first quarter of 2008. Atlas will become a part of Energomera Electronic Material business (EEM) that is led by Energomera’s Monocrystal. Atlas will keep its existing management team and in the short term will continue to operate fundamentally as it does today.

The companies are very positive about this transaction. Monocrystal and Atlas are both well known in synthetic sapphire industry and are leading global suppliers of high-quality sapphire substrates and sapphire optics used in a variety of end-market applications including high brightness light emitting diodes (LEDs), radio frequency integrated circuits (RFICs), optoelectronics and optical applications. These two companies are highly complementary to each other. With the acquisition of Atlas, Energomera becomes the leading company in the synthetic sapphire industry, in terms of production capacity for crystal growing and processing, expands its global customer base and product portfolio. Brining Monocrystal and Atlas together unites talents of management teams and employees, as well synergies in R&D, production, and business functions. The combination creates for Energomera opportunities in cost reduction, new product development, and customer service areas to translate also into opportunities for customers and investors.

“Over the last years, Atlas has been developing business quite dynamically aiming at improving its market position. The integration of know-how and product portfolios with Monocrystal will enable us to even better serve our expanding customer base by offering high-quality products. Through utilizing Energomera’s strong financial position, we will be able to facilitate our investment projects to grow production capabilities to meet the increasing demand of our LED and RFIC customers,” said Martik Ovsepyan, General Manager of Atlas.

The demand for high quality sapphire substrates will be booming with emerging LED applications in general lighting and backlights for TV and LCD. Broad adoption of sapphire-based RFICs in telecom market will boost this demand even further. Energomera Electronic Material business is well positioned to continuously play a crucial role in the global compound semiconductor substrate market for high-tech applications.

About Energomera

Energomera is a rapidly growing company that manages a diversified portfolio of market-leading businesses operating in Russia and globally in electrotechnical, electronic materials, and agricaltural production segments. Energomera’s electrotechnical business enjoys over 40 % share dominance in the energy metering market by manufacturing and selling to Russian utilities. The company’s electronic material business is the largest manufacturer of synthetic sapphire for high-tech applications in the world, and its agricultural business named among the top six Russian grain producers for 2004–2006. To know more about Energomera, visit www.energomera.com

About Atlas

With production facilities located near Belgorod, Russia, Atlas produces synthetic sapphire crystals and non-polished sapphire blanks for optics, electronics, and watch industries. To know more about Atlas, visit www.atlas-pcf.ru.

About Monocrystal

Monocrystal is a global sapphire market leader. Operating a sapphire crystal growing and processing business for more than 20 years, Monocrystal has built its unrivalled expertise and brand recognition in production of top quality sapphire products: epi-ready substrates, Silicon-On-Sapphire (SOS) wafers, and sapphire optics. Monocrystal also produces pastes for mono- and multi-crystalline solar cell metallization. To know more about Monocrystal, visit www.monocrystal.com.

For additional information, contact:
Andrey Komkov
Vice President Strategy & Development
Tel. +7 (8652) 56-25-21
ir@energomera.ru