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Distribution of Eggs and Egg Products Distribution of Eggs (in 2010)

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Employment <strong>of</strong> Modern <strong>and</strong> Secure Technologies<br />

Quality <strong>and</strong> Safety Control:<br />

National St<strong>and</strong>ards<br />

Quality <strong>and</strong> Safety Control:<br />

International Practices<br />

Quality <strong>and</strong> Safety <strong>of</strong><br />

Management Systems<br />

Hazard Analysis <strong>and</strong> Critical<br />

Control Po<strong>in</strong>t (“HACCP”)<br />

Biosecurity<br />

State-<strong>of</strong>-the-art new<br />

production facilities<br />

Modern <strong>and</strong> highly efficient<br />

exist<strong>in</strong>g facilities<br />

� Avangard has obta<strong>in</strong>ed several operational permits relat<strong>in</strong>g to food quality <strong>and</strong> orig<strong>in</strong> issued by local departments <strong>of</strong> each<br />

<strong>of</strong> the Ukra<strong>in</strong>ian State Committee <strong>of</strong> Veter<strong>in</strong>ary Medic<strong>in</strong>e (“SCVM”) <strong>and</strong> the State Sanitary <strong>and</strong> Epidemiological Service <strong>of</strong><br />

Ukra<strong>in</strong>e (“SSES”)<br />

� Avangard is currently <strong>in</strong>troduc<strong>in</strong>g <strong>and</strong> develop<strong>in</strong>g an <strong>in</strong>tegrated quality <strong>and</strong> safety control system at its operational<br />

facilities based on the st<strong>and</strong>ards <strong>of</strong> the International Organization for St<strong>and</strong>ardization (“the ISO”)<br />

� In the course <strong>of</strong> 2008 <strong>and</strong> 2009, Imperovo received ISO 9001:2008, ISO 9001:2000 <strong>and</strong> ISO 22000:2005 certificates<br />

� As part <strong>of</strong> the preparation for ISO certification, some <strong>of</strong> Avangard's farms are currently prepar<strong>in</strong>g for certification <strong>of</strong> their<br />

hygiene procedures under the <strong>in</strong>ternationally recognized methodology for <strong>in</strong>creas<strong>in</strong>g food safety, HACCP<br />

� Imperovo was certified under HACCP <strong>in</strong> 2008<br />

� Avangard employs a broad range <strong>of</strong> biosecurity measures <strong>in</strong> order to m<strong>in</strong>imize the risk <strong>of</strong> disease <strong>in</strong>fection <strong>and</strong><br />

transmission at its egg production facilities <strong>in</strong>clud<strong>in</strong>g keep<strong>in</strong>g all hens at <strong>in</strong>door production facilities, strictly controll<strong>in</strong>g<br />

access to facilities, dis<strong>in</strong>fect<strong>in</strong>g employees <strong>and</strong> vehicles enter<strong>in</strong>g production areas, allocat<strong>in</strong>g vehicles to specific<br />

production facilities, constantly monitor<strong>in</strong>g the health <strong>of</strong> hens, support<strong>in</strong>g advanced disease control measures for its<br />

facilities, etc.<br />

� Avangard has 23 <strong>in</strong>-house laboratories at its production facilities<br />

� Management believes that each <strong>of</strong> the Avis <strong>and</strong> Chornobaivske egg production complexes will be amongst the largest egg<br />

production facilities <strong>in</strong> Ukra<strong>in</strong>e <strong>and</strong> the CIS. These farms are designed to be labour-efficient. Foundations, communications<br />

<strong>and</strong> l<strong>and</strong>scap<strong>in</strong>g services for Avis <strong>and</strong> Chornobaivske will be provided by local Ukra<strong>in</strong>ian suppliers<br />

� The equipment for Avis <strong>and</strong> Chornobaivske is supplied by Salmet International GmbH, “Offic<strong>in</strong>e Facco & C.”, "Andriz Feed<br />

& Bi<strong>of</strong>uel A/ S“, "Buhler AG" , "Meyn”, "MOBA" , "VadoGroup“ <strong>and</strong> "GHD USsA"<br />

� Avangard employs advanced technologies at its various production facilities, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong> relation to its breeder farms,<br />

farms for grow<strong>in</strong>g young lay<strong>in</strong>g hens, farms for lay<strong>in</strong>g hens <strong>and</strong> egg process<strong>in</strong>g facilities. Avangard’s production process is<br />

largely automated, which ensures <strong>and</strong> promotes consistently high-quality products <strong>in</strong> a cost efficient manner<br />

� Avangard sources the equipment both domestically <strong>and</strong> from lead<strong>in</strong>g European suppliers, <strong>in</strong>clud<strong>in</strong>g Salmet International<br />

GmbH, "Offic<strong>in</strong>e Facco & C." S.p.a., Big Dutchman GmbH, Tecno Poultry Equipment, Specht Ten Elsen GmbH & Co KG <strong>and</strong><br />

Hellmann Poultry<br />

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