Galda De Jos Commune, Alba County, ROMANIA

Joint-stock Company

Registered office: Oiejdea locality, DN1, Km 392+600 Code : 517293,

Galda de Jos commune, Alba county, ROMANIA

Trade Register: J-01/70/1991, CIF: RO 1755369,

Share capital: lei 65,270,886.70

No. 4435/27.12.2010

- THE NATIONAL SECURITIES COMMISSION

- BSE - RASDAQ Market

Please find attached the Current Report regarding the Extraordinary General Meeting of Shareholders of SC ALBALACT SA of 27 December 2010.

- The Report is accompanied by:

Decisions no. 1, 2, 3, 4/27.12.2010

Respectfully yours,

DIRECTOR

Ciurtin Petru

CURRET REPORT, PURSUANT TO NSC REGULATION NO. 1/2006

S.C ALBALACT S.A.

Date of report: 27.12.2010

REGISTERED OFFICE:

Oiejdea, DN 1, km 392+600, county of Alba

PHONE/FAX NUMBER:

Tel./fax. 0258/846980; 816424

NUMBER AND DATE OF REGISTRATION WITH THE OFFICE OF TRADE REGISTER (OTC):

JOI / 70 / 1991

FISCAL REGISTRATION CODE: RO 1755369

SYMBOL: ALBZ

Important events to report

A. On 27.12.2010,12:00 PM, the Extraordinary General Meeting of Shareholders of S.C. Albalact S.A - first call - was held, passing the following decisions:

1. The final merger between SC ALBALACT SA and S.C. Rarăul S.A., joint-stock company, with the registered office in str. Aeroportului nr. 3, city of Câmpulung Moldovenesc, county of Suceava, registered with the Trade Register under no. J-33/13/1991, having the unique code of registration RO 730137 ("Rarăul"), by absorption of Rarăul by SC ALBALACT SA is not approved.

2. The Procedure of Albalact shareholders withdraws, pursuant to art. 134 of Companies Law no. 31/1990, as amended and completed, is not approved.

3. The amendment of the Articles of Incorporation of SC ALBALACT SA is not approved.

4. The date of 14 January 2011 is approved as registration date, pursuant to the provisions of art. 238 of Law 297/2004 regarding the capital market, namely the date which serves for the identification of the shareholders that are to benefit from the effects and rights conferred by the resolutions that will be adopted by EGMS.

5. Authorization of the Company’s Board of Directors to sign, in the name and on behalf of the shareholders, the EGAS resolutions and to fulfill all and any of the formalities required by the law for the registration, enforcement and provision of opposability to third parties of the resolutions adopted by EGAS. The Board of Directors is granted the right to delegate his mandate to other persons regarding the performance of the above mentioned formalities.

Appendices:

Decision 1, 2, 3, 4 of 27.12.2010 of the Extraordinary General Meeting of Shareholders (“EGMS”).

Director,

DECISION No.4

of the Extraordinary General Meeting of Shareholders of

S.C. ALBALACT S.A. of 27 December 2010

The Extraordinary General Meeting of Shareholders of S.C. Albalact, a joint-stock company, whose shares are admitted for trading on Rasdaq market, operated by the Bucharest Stock Exchange, III-R category, having its registered office in Oiejdea locality, Galda de Jos commune, DN 1 KM 392+600, Alba county, registered with the Trade Register under no. J- 01/70/1991, tax identification number RO 1755369, with a subscribed and paid up capital amounting to RON 65.270.886,70, divided into 652.708.867 dematerialized nominal shares, each having a nominal value of RON 0,1 (“Company”),

summoned by the convener published in the Official Gazette of Romania. Part IV, issue 4792 from 26.11.2010, in Bursa newspaper issue 231 from 26.11.2010 and in Unirea newspaper from 26.11.2010,

according to the provisions of Law no. 31/1990 on companies, republished, of Law no. 297/2004 regarding the capital market, of the National Securities Commission Regulation no. 1/2006 on issuers and operations with securities, of the National Securities Commission Regulation no. 6/2009 on exercising certain shareholders rights within the general meetings of companies and according to the provisions of the Company’s Deed of Establishment,

legally and statutory assembled and held on 27 December 2010, at 12:00, in Oiejdea, DN 1, km 392+600, ALBA county, on first call, in the presence of the shareholders representing 70.4101% of the share capital and, respectively, 70,4101% of the total number of voting rights, has adopted the following

DECISION:

Art.1 - With a number of 459,573,157 votes, validly cast by the present or represented shareholders, representing a number of 459,573,157 shares issued by the Company, respectively 70.4101% of the Company’s share capital and 100% of the voting rights of the present or represented shareholders in the meeting, of which 459,573,157 votes for, 0 votes against and 0 abstentions, the final merger between the Company and S.C. Rarăul S.A., joint-stock company, with the registered office in str. Aeroportului nr. 3, city of Câmpulung Moldovenesc, county of Suceava, registered with the Trade Register under no. J33/13/1991, having the unique code of registration (CUI) 730137 ("Rarăul"), by absorption of Rarăul by the Company, subject to the terms and conditions laid-down in the merger project published in the Official Gazette of Romania, Part IV, issue 4704 of 19.11.2010 (“Merger Project”) is not approved. Consequently, neither the Merger Project not the implications of such an operation are approved, including, without limiting to:

transfer, under an universal title, of all the assets and liabilities, rights and obligations, respectively, related to the entire patrimony of Rarăul to Albalact, including all its business unit or other secondary offices of Rarăul, namely: Dairy Factory located in Câmpulung Moldovenesc, str. Aeroportului nr. 3, county of Suceava; - Business unit for cheese production, located in village of Botuş, commune of Fundu Moldovei, nr. 1068, county of Suceava; - Business unit for cheese production, located in village of Comăneşti, commune of Comăneşti, nr. 471 A, county of Suceava;

b. increase of Albalact share capital from RON 65,270,886.7 to RON 65,544,709.7, as a result of transferring the patrimony of Rarăul to Albalact, by issuance of a number of 2,738,230 new nominative shares, each with a nominal value of RON 0.1, which shall be distributed to Rarăul shareholders (other than Albalact). As a result of the increase, Albalact will have a share capital of RON 65,544,709.7, divided into 655,447,097 shares, each with a nominal value of RON 0.1;

c. winding-up, without liquidation, of Rarăul, and erasure thereof from the records of the Office of the Trade Register within Suceava Court of Law;

d. the effective date of the merger is 31 December 2010.

Art.2 - With a number of 459,573,157 votes, validly cast by the present or represented shareholders, representing a number of 459,573,157 shares issued by the Company, respectively 70.4101% of the Company’s share capital and 100% of the voting rights of the present or represented shareholders in the assembly, of which 459,573,157 votes for, 0 votes against and 0 abstentions, the empowerment of the President of the Company’s Board of Directors to sign, in the name and on behalf of the shareholders, the EGMS resolution and to fulfill all and any of the formalities required by the law for the registration, enforcement and provision of opposability to third parties of the resolution adopted by EGMS is approved. The Board of Directors is granted the right to delegate his mandate to other persons regarding the performance of the above mentioned formalities.

The aforementioned decision has been adopted and signed today, the day of 27 December 2010, in Oiejdea, in 4 original counterparts.

Director,

Account/Bank: R076 RNCB 0003 0216 9747 0004 - BCR Alba;

R090 ABNA 3300 2641 0022 0120 - ABN-AMRO Bank (Romania) SA Sibiu Branch;

Tel: 0258 846 980,815 601; Fax: 0258 815 418; E_mail: ; Web: www.albalact.ro

Joint-stock Company

Registered office: Oiejdea locality, DN1, Km 392+600 Code : 517293,

Galda de Jos commune, Alba county, ROMANIA

Trade Register: J-01/70/1991, CIF: RO 1755369,

Share capital: lei 65,270,886.70

DECISION No.3

of the Extraordinary General Meeting of Shareholders of

S.C. ALBALACT S.A. of 27 December 2010

The Extraordinary General Meeting of Shareholders of S.C. Albalact, a joint-stock company, whose shares are admitted for trading on Rasdaq market, operated by the Bucharest Stock Exchange, III-R category, having its registered office in Oiejdea locality, Galda de Jos commune, DN 1 KM 392+600, Alba county, registered with the Trade Register under no. J- 01/70/1991, tax identification number RO 1755369, with a subscribed and paid up capital amounting to RON 65,270,886.70, divided into 652,708,867 dematerialized nominal shares, each having a nominal value of RON 0,1 (“Company”),

summoned by the convener published in the Official Gazette of Romania, Part IV, issue 4792 from 26.11.2010, in Bursa newspaper issue 231 from 26.11.2010 and in Unirea newspaper from 26.11.2010,

DECISION:

a. The withdrawal price is RON 0.24/shares, as determined in the valuation report prepared by S.C. CMF Consulting S.A. Payment for the shares subject to withdrawal right will be made from the allottable profits and available reserves of Albalact, recorded in the last approved annual financial statement, pursuant to the provisions of art. 1031 para. (1) letter d corroborated with art. 104 para. (2) of Law no. 31/1990 on companies, as amended and completed; in case when, upon the expiration of the withdrawal term, the total amount to be paid to the shareholders who exercised the withdrawal right by the Company exceeds the amount of RON 6,173,247, respectively the total amount of the allottable profit and available reserves, the Company’s Board of Directors is authorized to summon a new extraordinary general meeting of shareholders of Albalact, after the expiration of the withdrawal period, which meeting, taking into account the economic and legal considerations associated to the value of the shares subject to withdrawal right, will decide whether the merge is to be implemented or nor or whether the merger decision is to be revoked or not.

The aforementioned decision has been adopted and signed today, the day of 27 December 2010, in Oiejdea, in 4 original counterparts.

DECISION No.5

of the Extraordinary General Meeting of Shareholders of

S.C. ALBALACT S.A. of 27 December 2010

The Extraordinary General Meeting of Shareholders of S.C. Albalact, a joint-stock company, whose shares are admitted for trading on Rasdaq market, operated by the Bucharest Stock Exchange, III-R category, having its registered office in Oiejdea locality, Galda de Jos commune, DN 1 KM 392+600, Alba county, registered with the Trade Register under no. J- 01/70/1991, tax identification number RO 1755369, with a subscribed and paid up capital amounting to RON 65.270.886,70, divided into 652,708,867 dematerialized nominal shares, each having a nominal value of RON 0,1 (“Company”),

summoned by the convener published in the Official Gazette of Romania, Part IV, issue 4792 from 26.11.2010, in Bursa newspaper issue 231 from 26.11.2010 and in Unirea newspaper from 26.11.2010,

DECISION:

Chapter I, Art. 1 (Shareholders), is amended and will have the following content:

"CIURTIN PETRU

Quality: shareholder; Citizenship: Romania; Date and place of birth: 20.12.1941, Mărgâu/Cluj; Personal Identification Number: 1411220011098; ID type IC, series AX no. 371960, issued by SPCJEP Alba on 14.10.2009; Address: str. Oituz nr. 30, city of Alba lulia, county of Alba, Romania;