As Board Members Resign, Romlag - Brasov Switches To Sole Director

After all of the Members of the Board of Directors of Romlag - Brasov resigned, the company"s auditor, Basicount SRL, appointed Gabriel Catalin Anghel as Sole Director. He will run the company until 12 October, when the General Meeting of Shareholders in Romlag SA is scheduled to convene for electing a new Board.

The Romlag SA shareholders in October 2008 decided to replace the directors after more than three years of failed attempts. A change in the Board membership was quite expectable after Mihai Fercala, CEO of SIF Transilvania, an important shareholder in Romlag, had repeatedly criticized the defective management of the bearings manufacturer.

Fercala at some point said that the management of Romlag SA had performed "transactions in their own personal best interest" while "disregarding basic principles such as the fact that the Board is employed to act in the shareholders" best interests." "They preferred to buy a hotel rather than modernize the production process, although the company"s registered business does not include any reference to hotels," Fercala further said.

Financial investment firm SIF Transilvania had repeatedly asked the executive management of Romlag SA to call a General Meeting of Shareholders to validate the conclusion of the last financial year. As the management refused to do so, SIF Transilvania took the matter to court an won.

Romlag SA - Brasov, a manufacturer of bearings, bearing sleeves and other related parts, used to be a unit of Rulmentul SA, which was privatized in 1996. The Romlag Employee Association currently controls the company with 75.38 per cent, whereas SIF Transilvania is the second largest shareholder with 22.84 per cent. Various individuals hold an aggregate 1.77 per cent.