COMPANY POLICY The production portfolio of Zebra AD is wide and diverse. The new products elaborated for the last 3 years have been over 10 %. The Company has adopted an innovation process comprising of new products, new raw materials, and improvements of the existing products that will serve as the basic precondition for the prosperity of the company. The process of expansion and innovation includes not only the introduction of new products, but also the introduction of new technological lines and processes. The management team of the Company has the ambition to optimize all activities related to product manufacturing (design, development, and manufacturing), its promotion, and sales on the market. The basic task of the Company’s Marketing Department is to apply all known marketing techniques to make the Company’s trademark name more popular, and to restore the market shares in the Bulgarian and Russian markets. The high quality, correct relationship with partners and customers, and the understanding that the customer’s satisfaction is most important for assessing of the results achieved, are the reasons for the Zebra’s steady growth of its market shares in USA and Europe. The forthcoming accession of Bulgaria into the EU will put new challenges before the Company’s management, related to strict adherence to the new harmonized legislation, as well as, towards all initiatives that offer an opportunity to expand the list of customers within the frame of EU, and to increase the confidence in the capabilities and qualities of Zebra as a partner and supplier. In 2002, Zebra became the first Bulgarian company that has introduced an integrated system for quality control and environmental protection. While using the basic concepts of ISO 9001 and ISO 14001, Zebra has been developing, implementing, and utilizing the proper system for management of product quality and concern for the environment. At the same time, the company has expanded its capabilities and increased the benefits for its staff, for environmental safety, and for satisfying the requirements for all parties concerned. In the context of the functioning Quality and Environmental Management System, in the summer of 2003 Zebra started with the introduction of a system for monitoring and control of energy consumption. The daily monitoring of the steam and power consumption of all production facilities will provide the opportunity for their better operational management. The data collected will serve as basis for the establishment of a long-term energy efficiency program. In 2002, Zebra has become a member of the voluntary organization “RESPONSIBLE CARE”, established by companies operating within the chemical industry, with the purpose of achieving improvements in health, safety, and environment-friendly performance of the manufacturing activities and products, as well as to keep the public informed and seeking its participation. Assessing the contribution and the importance of every member of the staff and to keep the risk as low as possible, the management considers the care for the health of its employees and the creation of a safe working environment to be a key factor in the company’s philosophy. With a decision taken by the Board of Directors, Zebra has started in 2004 the preparation for adoption of OHSAS 18001 for occupational health and safety management, and its integration with the already existing system. The Company’s management has been evaluating the importance of keeping and enhancing the qualification level of its employees and is creating opportunities for their additional training. In order to fully utilize employees’ skills, the Company has provided the opportunity for them to cross-over and work at other venues, and providing additional rewards for workers that take this initiative and are able to do additional work. At the working venues, the company is strongly encouraging team work. There is a readiness to assist and on-the-job training for newly hired employees.