20. October 2004.

The Extraordinary General Assembly of the Herend Porcelain Manufactory Ltd. on October 19, 2004

The Herend Porcelain Manufactory Ltd. outlined, at its December 6, 2003 general assembly, the direction of its future strategies. According to these, the current ownership structure, considered as healthy for the company, will be kept, while the prevailing economic challenges must be met with growth and development.

The management and the board of directors elected this spring drew up a detailed company strategy until 2010, which is based on expanding production, increasing sales and falling back on more resources. Enhancing efficiency and enforcing renewal in all walks of corporate life have been set as the main goals.

Encouraged by our successes in the American, Japanese and Italian markets, we plan to launch an intensive campaign to conquer markets in Europe as well as worldwide, focussing in particular on France, Russia, China and the Arab world. We continue to consider Herend's presence in the Hungarian market of utmost importance, together with broadening the scope of our sales by targeting the recently emerging middle class. Beside cherishing Herend traditions, we wish to boost product improvement and apply new means of sales in order to address our perspective customers in the 21st century.

We will endeavour to raise productivity by a considerable margin mainly through professional training, retaining manufactory production methods, enforcing technological development and maintaining the particularly high quality of Herend products.

We plan to satisfy the demand for workforce with vocational training. According to our estimates, implementing this strategy will ensure the growth of real wages.
By implementing this strategy, we shall build a new white golden age in the 178-year history of Herend.