Mhp Reg S Regulatory News (MHPC)

PRESS RELEASE

May 20, 2010, Kyiv, Ukraine

MHP S.A.

Commencement of Vinnytsya Poultry Farm Construction

MHP S.A. ("MHP" or the "Company", LSE ticker: "MHPC"), one of the leading agro-industrial companies in Ukraine focusing on the production of poultry and the cultivation of grain, announces the commencement of a construction of the first two phases of its Vinnytsya Poultry Complex. The ground breaking ceremony took place today in the nearby town Ladygin, Vinnytsya region and was attended by Valery Kolomeyzev, Mayor of Ladygin, Artur Furyma, Deputy CEO, Director of Development, MHP, and other officials.

It is expected that the first phase will be in production in 2013 and the first two phases becoming fully operational in 2015. The third and fourth construction phases are optional and the decision to continue the construction would depend on demand and pricing at the time. If all four phases are completed, this new project is expected to be approximately twice as big as the Myronivka chicken farm, with each phase having an annual production capacity of 100,000 tonnes of chicken meat. As a result of its expansion programme, MHP expects to achieve further economies of scale, decrease its per unit operating costs and acquire greater market share in Ukraine. MHP is also considering the possibility, in the longer term, of exporting to various EU countries should it receive the relevant permits to do so.

Commenting on the commencement of construction, Yuriy Kosyuk, Chief Executive Officer of MHP, said:

"The commencement of Vinnytsya Poultry Farm construction is another important milestone in MHP's development. Our plan is that the complex, which will incorporate its own fodder mill, grain storage capacities, a hatchery, chicken barns and a processing plant, will allow us significantly increase our production volumes, strengthen our position on the local market and possibly open new export opportunities".

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