Midway United

Midway United Limited is a Russian premier platform with strong upside potential operating within the attractive sector of wood processing. The Company is now completing two large investment projects in construction of plywood and veneer plants. Once operational, the plants will put Midway United among the top producers of plywood in Russia. Significant investments have been made to date and financing has been secured.

The Company combines Russian resources and skills with foreign capital forestry management knowledge and governance approaches. Midway United was created through the combination of two off-shore legal entities, representing the interests of the beneficiaries. Apart from financial contributions, the shareholders consolidate their expertise, skills and knowledge, which complement each other.

Our assets are strategically located to supply both domestic and foreign markets such as Europe, North America and Asia due to its close proximity to the Trans-Siberian and BAM, Baikal Amur Mainline, railroads. As of June 2008, the Company leased over 1.2 million hectares (3 million acres) of forest both in Krasnoyarsk and Irkutsk regions, forest reserves of roughly 150-170 million m³ and logging rights of 2.2 million m³ annual allowable cut (“AAC”).

To build a first class manufacturing platform, with a full cycle of production in Russia, leveraging best practices and local strengths

To target only markets with strong demand in plywood and veneer and positive pricing developments

To capitalize on plywood business and to expand into pulp afterwards, using it as a platform

To benefit from optimal use of by-products (e.g. peeler cores and wood chips)

To have close relationships with local officials by playing an active social role in the region through creating additional job positions, paying local taxes and complying with the highest environmental standards