Senožeče, 1 December 2009 –  Sibil Svilan, M.Sc., the President of the Management Board of SID Bank - First  Credit Insurance Company and Franc Krašovec, the President of the Management Board of Cimos d.d. (Plc) from Koper have signed the contract for two long-term (10 years) loans for financing of two developmental projects in the total value of 40 million Euros.

The loan is intended for projects, which estimated cost is 50 million Euros. Investments in research, development, new technologies and up-to-date production equipment represent 44 million of EUR from the total value of the investment. For two developmental and investment projects, Cimos has acquired co-financing from sources of the SID Bank – First Credit Insurance Company and from the European Investment Bank (EIB Bank) in the form of a purpose loan in the total value of 40 million EUR

SID Bank (SID – Slovenska izvozna in razvojna banka) has approved the loan from funds of the European Investment Bank (EIB) and other funds designed for financing of developmental projects in the automotive industry, small and medium-sized enterprises, development of municipalities and environmental protection in the total value 436 million Euros (of this 136 million Euros designed for the automotive industry). With these funds the SID Bank facilitates financing of developmental breakthrough; it contributes to mitigate consequences of the financial crisis and gives possibility for long-term Slovenian economic development.

By realizing both research-developmental and investment projects Cimos will strengthen its recognisability in the automotive market as a competent developmental supplier, for projects with high value added.  Competitiveness of the Company will raise and assure us major operating stability in future.

Both projects are the outcome of a long-term developmental collaboration with world recognized automotive manufacturers, the outcome of our intense investment in new development and production technologies and of the collaboration with scientific and researching institutions in Slovenia and abroad. Both projects are characterised by innovative design solutions, light and environment friendly materials and ecology oriented efficient production processes.

The project »PRINCE – Camshaft bearing brackets« - we are speaking about 7 different and very demanding aluminium products, forming a set of seventeen components for Camshaft bearing brackets. Products are designed fro the new generation of small compact petrol engines of BMW and PSA, which will be produced in accordance with the EURO 5 and EURO 6 standards. With the average daily production of 50.000 parts we are planning to achieve, through the project's life-span, over 110 million Euros revenues.

The project »FLY2 - Flywheels« - it comprises flywheels, with high technological complexity and small mass. Despite reduction of the mass they guarantee equal or even better – improved functionality (moment of inertia). They are designed for modern turbo-diesel engines of Ford and Volvo and to small-volume petrol engines of Ford and PSA. Annual production and sales volumes exceed 350.000 parts, what will bring about 130 million EUR revenues through the project's life-span.

Both projects are oriented towards meeting the EU requirements for reduction of CO2 emissions and other emissions and will meet the EURO 6 Standard. Calculations have showed how CO2 emissions are going to be lower for 120.000 tons throughout the life-span of both projects. Consumption of fuel will be reduced for 108 million litres thanking to more efficient engines.

The projects for which Cimos has obtained financing are only two out a larger number of strategic projects, which are in run and which are opening new opportunities for the sale in the coming years.

Acquisition of these funds gives us ensurance for a successful realization of projects and for a competitive research-manufacturing platform for further marketing of these products. With regard to technical characteristics of products, achieved within the developmental work in these two projects, we are expecting to trade the products with success to other automotive manufacturers.