TAMARA FRUIT (ARMENIA) GETS $3.4MLN BUDGET GUARANTEE

ARKA
Feb 12, 2009

YEREVAN, February 12. /ARKA/. At its sitting today the RA Government
decided to provide a $3.4mln budget guarantee to the Tamara Fruit
Company.

RA minister of Economy Nerses Yeritsyan stated that the guarantee
will enable the company to continue its operation and purchase raw
materials from Armenian farmers.

"We held long negotiations with the bank serving Tamara Fruit and
determined the amount," the Minister said.

The Tamara Fruit CJSC was founded in Armenia in 2002. The company
produces frozen fruit and vegetables as well as juices, jams, canned
vegetables.

The Minister pointed out that the budget guarantee will enable the
company to create 120 jobs, purchase about 3,000 tons of raw materials
and ensure 8.6-8.8bln AMD exports, with over 70% to be the share of
Russia and the European Union (EU). Yeritsyan pointed out that an
international auditing firm will make audits of the company from next
year on.

The measures are a logical step to overcome the crisis and are supposed
to greatly contribute to the company’s development, the Minister said.

RA Prime Minister Tigran Sargsyan pointed out that this step opens a
new chapter in the Government’s cooperation with the private sector. He
said that this is the first program of government assistance to
successful private enterprises.

The Premier pointed out that this mechanism open s up new opportunities
for the Tamara Fruit Company, which has international certificates
allowing it to export its products.

"This is the first decision of this type made by the Government, as we
are establishing a new tradition in the Government’s cooperation with
the private sector, which is supposed to become one of the anti-crisis
factors," the Premier said.

The RA Government also approved the Tamara Fruit CJSC’s program of
laying out organic gardens – the planting of 450,000 seedlings of
blackberries, black currant, as well as selection work at 3,000sq
meters.

Under the program the first year’s yield is to reach four tons per
hectare, the second and third years 10 tons and 12 tons per hectare
respectively.