OREANDA-NEWS. On September 22, 2008 the ALROSA Supervisory Board held its meeting in Moscow, reported the press-centre of ALROSA.

The main issue on the agenda was adjustment of the Company’s major performance targets and budget for 2008. The adjustments proposed by the management reflect the current economic situation and objective growth in direct production costs resulting from increased costs of fuel, materials and machinery, increased labour costs, and increased prospecting and exploration expenditure.

The Board voted to approve the adjusted targets and budget for 2008 proposed by the Executive Board, as follows:

rough diamond production (including the production of OJSC ALROSA-Nyurba -       USD 2 289.3 million;

rough diamond production by ALROSA Co. Ltd.- USD 1 764.1 million;

revenues from core product sales,   total- USD 3 041.2 million, including those from:

- sales by ALROSA Co. Ltd.- USD 2 358.0 million;

- sales of rough diamonds- USD 2 851.2 million;

- sales of polished diamonds- USD 190.0 million;

- sales by OJSC ALROSA-Nyurba- USD 683.2 million;
  
revenues from sales of products (work and services)- RUB 86 366.1 million;

profit from sales of products (work and services)- RUB 21 881.3 million;     

net profit (exclusive of net profit generated by OJSC ALROSA-Nyurba) - RUB 10 286.4 million;

capital expenditure    - RUB 17 327.9 million;

prospecting and exploration budget(exclusive of on-mine-site exploration   expenses)- RUB 3 769.9 million;

R&D expenditure- RUB 440.4 million.

The Programme to Improve Efficiency of ALROSA Construction Divisions proposed by the management was also approved, to be implemented in three years.

The Supervisory Board approved appointments to the Company’s Executive Board as its new members of ALROSA’s Vice-President Vladimir P. Tkachenko, Chief Treasurer- Financial Director Igor M. Kulichik and Chief Geologist Sergey I. Mityukhin.