OREANDA-NEWS. On June 20th, 2008 a meeting of the ALROSA Executive Board under the chairmanship of President Sergey A. Vybornov took place in Mirny, Republic of Sakha (Yakutia).

The Executive Board considered and endorsed adjustments of the Company’s main targets and budget for 2008. The adjustments had been proposed in connection with the updates of the tentative data on the 2007 performance and emergence of objective factors likely to have a material effect on ALROSA’s economic performance and presented to the Board by Vice-President Valentina Potrubeiko. The relevant materials will be passed on for final approval to the ALROSA Supervisory Board.

The Board agreed to the modifications of "Regulations on Reimbursement of ALROSA employees" in connection with a wage and salary increase effective from July 1, 2008. Thus the decision of the meeting of the Company’s senior management and the Profalmaz Union activists of April 12, 2008 on application of differentiated approach to reimbursement increases – i.e. that workmen’s compensation should be increased to more significantly compared with managers’ and administrative personnel’s reimbursement, while senior management’s reimbursement should be frozen – was practically implemented. In general, reimbursements of different categories of employees will be increased by 20 per cent.

One of the sources of financing for the planned increases is the reduction in the number of the administrative personnel currently under way – all the released funds will be used to increase wages and salaries.

To minimize liquidity risks and increase the proportion of long-term obligations in the Company’s debt portfolio the Board approved a USD 1 billion issue of Eurobonds with a maximum 9 per cent yield and 10-year maturity. The joint book-runners of the issue are US banks Morgan Stanley and JP Morgan.

In respect of "Organization of therapeutic and resort treatment and recreation for ALROSA employees and their families", the Board found the currently operational system and facilities adequate and sufficient.