Over 22,100 Tonnes of OSR Harvested

Landkom International PLC (AIM: LKI, "Landkom" or the "Company"), the Ukrainian producer of high-value oil seed rape (OSR) and wheat, has harvested over 22,100 tonnes of OSR from 6,200 hectares.

18,532 tonnes of this harvest was high quality OSR from 5,003 hectares. This represents an average yield of 3.704 tonnes per hectare. On 19 June 2008, Landkom agreed an off-take, pre-sale, of its first 9,000 tonnes of its OSR crop at a net price of $540 per tonne to one of the world's largest commodities suppliers. This contract has been fulfilled and payment received. Landkom has also sold a further 4,200 tonnes. Landkom expects to sell the outstanding balance of approximately 5,300 tonnes shortly.

3,600 tonnes of the harvest was lower quality OSR from 1,200 hectares which Landkom intends to use in the manufacture of approximately 3 million litres of biodiesel for use by its own agricultural and logistics fleet. As previously announced, in order to reduce the Company's exposure to fuel costs, it has invested in its own biodiesel plant. The costs associated with this part of the crop were substantially less than the high quality OSR sold for foodstuff.

Landkom expects to publish its interim results for the six months to 30 June 2008 in mid September 2008, which will include an update on the Company's land bank, and the details of its wheat harvest will be published in early October 2008.

Richard Spinks, Landkom Chief Executive, commented:
"We are delighted by the yields and excellent quality of this, our first OSR crop, despite the late start to the land preparation last year, limited equipment availability following the pre-IPO round and derelict state of the land brought back into production. It has been a tremendous achievement by the operations team who have been relentless in their efforts in difficult conditions, among them some of the heaviest rainfall in recent years during harvest.

"We are seeing extremely strong demand for our OSR and the revenue from this crop is well above our expectation at the IPO."

For further information:

Landkom International PLC
Richard Spinks, Chief Executive Tel: +380 673 410 140

Libertas Capital
Aamir Quraishi/Anthony Rowland
Tel: +44 (0)20 7569 9650

College Hill
Simon Whitehead/Adrian Duffield
Tel: +44 (0)20 7457 2020

Note to Editors
Landkom International PLC is a large scale producer of agricultural feedstock, principally oil seed rape and wheat, for supply to the European biodiesel and food industries.

Operating in Western Ukraine in the prime, fertile lands close to the border with Poland, Landkom has secured a land bank in excess of 100,000 hectares (as at 3 June 2008) and has completed the plantation of its first commercial crop of over 14,000 hectares. Landkom has a target to increase the land bank in Ukraine to at least 350,000 hectares by 2011.

Landkom is implementing Western-style agronomy practices using modern agricultural equipment to carry out efficient, large-scale farming techniques that will result in greater return from the land, increase levels of employment in the region and support further investment into the local economy.

 

28 August 2008

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