Setuza to transfer production to STZ, Oleochem, Spolpharma

Prague, Nov 10 (CTK) - Food company Setuza plans to transfer the main part
of its production to the firm STZ, owned by the company Via Chem Group,
Setuza's management told CTK Monday.

The remaining production is to be secured by the companies Oleochem and
Spolpharma belonging under Spolchemie in which Via Chem Group holds a
majority stake.

Last year already, owing to poor financial situation Setuza sold production
units of Usti nad Labem in northern Bohemia and in Olomouc in northern
Moravia to the firm STZ Development, controlled by Via Chem Group, and used
the money for paying its debts to the state.

Setuza is the largest plant oil and biofuel producer in the Czech Republic.

The STZ trademark should replace the name Setuza on the food product map,
said Setuza CEO Martin Prochazka.

Setuza is majority-owned by Cesky olej, in the past probably linked to
fugitive businessman Tomas Pitr, sentenced in the Czech Republic for tax
delicts.

STZ is to direct the production of edible plant oils, biofuels and
detergents at Setuza as of Dec 1. Oleochem will produce glycerine and fatty
acids and Spolpharma cosmetics and toothpastes.

Oleochem and Spolpharma are Spolchemie's 100-precent subsidiaries. Via chem
Group holds 66 percent in Spolchemie.

Setuza is to be transformed into a non-production company which Via Chem
Group spokesman Jan Sotona said will solve its debts and legal disputes.

Setuza's roughly 750 employees will move to the new companies.

According to the Register of Companies, Via Chem Group is fully owned by
Canadian company Euro Capital Alliance whose shareholder structure is not
known.

Setuza's loss grew from Kc802m in 2006 to a record Kc1.85bn last year and
its sales decreased by Kc146m to Kc7bn in the year, according to audited
results.

In the first half of this year, Setuza had a Kc68m profit and Kc1.108bn
sales.

Setuza's share capital is worth Kc1.15bn and its owner's equity at end-June
2007 was minus Kc933m.

Long-term obligations were worth Kc1.984bn at that time, Kc1.38bn of which
were long-term loans. Short-term obligations equalled roughly Kc1bn.