Abstract from Board of Directors' Annual Report - 3

Coster Group has been operating in Europe for over forty years with its own commercial, distribution and production units; from 1997 Coster has operated directly in South America through the subsidiary Coster Packaging S.A.
in Buenos Aires, from 2000 in South East Asia with the subsidiary Costerpack Sdn. Bhd. in Johor Bahru (Malaysia), from 2002 with the subsidiary Coster (Asia-Pacific) in Singapore and from 2003 in the United States of America
with the subsidiary Coster U.S.A., Inc. in South Elgin, Illinois.

Coster products are also manufactured and distributed through licensees in India, Iran, South Africa and Turkey. The remaining areas are managed directly by the Sales Office in Milan.
During 2006 manufacturing and commercial activities of the Group have been carri­ed out on a regular basis in all the areas where the individual companies operate.

Despite factors as strong competition and rising prices for raw materials, sales to the European markets significantly increased, especially in Italy, Germany, Russia and the U.K.

In the Americas turnover in local currency had a satisfactory growth.

The markets in South and East Asia are growing; local manufacturers are experiencing continuous growth and
offer extremely competitive pricing; our operations are hold­ing up in the face of this challenge, due to exclusive,
well-designed products offering excellent quality.