Dear Shareholders and Business Partners,

In 2007, the manufacturing and trading Company AL INVEST Břidličná, a.s. confirmed its position as the only Czech manufacturer of rolled semi-products made of aluminium and the largest domestic producer of flexible packaging materials.

The Company managed to take advantage of favourable demand on the market and significantly eliminated the unstable environment in respect of new entrants. It continued the programme of transformation of a number of processes concerning the organizational structure as well as the restructuring the technological flows, with the aim of increasing productivity and ensuring a good quality product portfolio.

The Company successfully achieved its strategic aims last year in terms of new materials in the segments of rolled semi-products and flexible packaging materials. Sales to the automotive industry almost doubled in comparison to 2006. This proved that the chosen strategy for foil materials was correct and that the Company was able to successfully establish itself in this difficult market segment.

The Company proved its quality assurance by completing the implementation of a higher-standard quality assurance system, ČSN ISO/TS 16949, for production focusing on supplying the automotive industry. Bringing a unique vacuum metallization technology into operation strengthened our position as a supplier to the tobacco industry and made it possible to widen the product spectrum of flexible packaging materials.

The Company was therefore able to react flexibly to substitution trends, which were the reason for lower levels of orders this year. By putting a new flexoprint machine into operation, we strengthened our position as a flexoprint technology leader in the Czech Republic. The Company’s role in research and development of new materials had a significant positive influence. The activities which enable us to contact new customers and the ensure long-term competitiveness of the Company are achieved in close cooperation with the Research Institute for Metals in Panenské Břežany and the Faculty of Mathematics and Physics of Charles University in Prague.

Our goal is to be a competitive Company with a minimal impact on the environment, which we put into practice by following an environmental programme and by starting the process of certification in line with ISO 14001:2005.

Last year the main focus was on lowering the overall level of working capital and total debt. The Company will continue this trend in 2008.

All the prerequisites are in place to achieve these aims for 2008.

I would hereby like to thank all shareholders, business partners, including the financing banks, and in particular all the Company employees, for their cooperation during 2007.

Ing. Petr Otava, CSc.
5 May 2008
Chairman of the Board of Directors