DOEN's AGM Results.

Donbassenergo’s (DOEN) AGM yesterday decided to direct DOEN’s net income for covering accumulated retained losses (i.e. not to pay dividends), approved the company’s financial plan for 2006 with net income of USD 0.011 mln (compared to USD 11 mln in 2005), and approved the company’s projects for construction of new 125 MW energy unit. Concorde Capital: The company’s net income has been rather volatile over the last five years, due to different factors affecting reported profits in different way. On the one hand DOEN is in the process of restructuring, write off of debts and fixed assets, increasing its costs; on the other hand it is granted with additional surcharges resulted in income growth. The company’s expected low net income in 2006 is explained by huge writing off of social infrastructure which would cause 22.7 mln non-cash losses. We are currently revising the company’s target price.