The construction of a further 70,000 square meter production facility begins and we expect that this additional production space will become operational in May 2011.

This additional facility is adjacent to our existing factory thus providing an overall production area exceeding 120,000 M² in one, efficient to manage location. Again, this increase in production space will also involve improvements in even more advanced production equipment, higher raw material stockholding levels and a yet further enhanced living environment for our highly valued staff. At peak season our average monthly production may now reach in excess of 1800 containers. IE: In excess of 72,000 sofas per month. - All this, without any deterioration to our high quality standards, our short delivery times and our dedicated service to our valued customers. This is a significant step in the strategic development of Violino.