Discussions with Investors ING 11 th Annual EMEA

Discussions with Investors ING 11 th Annual EMEA Forum in Prague December 2008

Cautionary Statement This document has been prepared by PEGAS NONWOVENS SA (the “Company”) solely for use at the Presentation. Any forward looking statements concerning future economic and financial performance of the Company contained in this Presentation are based on assumptions and expectations of future development of factors having a material influence on the future economic and financial performance of the Company. These factors include, but are not limited to, the legal environment, the future macroeconomic situation, the market competition, the future demand for nonwoven textiles and other related products and services and development of raw material prices. The actual development of these factors, however, may be different. Consequently, the actual future financial performance of the Company could materially differ from that expressed in any forward looking statements contained in this Presentation. Although the Company makes every effort to provide accurate information, we cannot accept liability for any misprints or other errors. In preparation of this document we used certain publicly available data. While the sources we used are generally regarded as reliable we did not verify their content. PEGAS does not accept any responsibility for using any such information. This document is provided for information and as a matter of record only. It does not constitute an offer to sell or a solicitation of an offer to buy or sell securities or other financial instruments in any jurisdictions or any advice or recommendation with respect to such securities or other financial instruments of the Company. The distribution of this document in certain jurisdictions may be restricted by law. This document may not be used for, or in connection with, and does not constitute, any offer to sell, or an invitation to purchase, any securities or other financial instruments of the Company in any jurisdiction in which such offer or invitation would be unlawful. Persons in possession of this document are required to inform themselves about and to observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. … every single detail … 2 September 2008

Agenda Company Introduction Strategic Objectives 9 M 2008 Financial Performance 2008 Guidance 2009 Outlook Appendix … every single detail … 3 September 2008

Company Introduction … every single detail … 4 September 2008

Overview Annual Production Growth • Product: Spunmelt Nonwoven Textiles – PP/PE • Experienced and Growing: since 1990 • 389 Employees • 8 Production Lines • Approx. 70 000 tons production based on current product mix (2008 e) • Luxembourg entity listed in Prague and Warsaw • 100% Free Float Source: Company Data … every single detail … 5 September 2008

Products Nonwoven Spunmelt Textiles • Hygiene (87% production in 9 M 2008) – Baby Diapers – Feminine Hygiene – Adult Incontinence • Technical (13% production 9 M 2008) – Medical – Resistant textiles for Building Industry – Furniture – Agriculture – Filtration – Wipes … every single detail … 6 September 2008

Geographical Advantage Optimal Location • Central European Base • Low Cost Area (Staff costs and Energy) • Government Incentives • Room for Expansion in the current Production Site in Znojmo … every single detail … Bučovice 7 September 2008

Meeting Market Needs • Highest Quality • Competitive Pricing • Continuous Development • Close cooperation with customers to identify and develop new products • On time delivery • Regular Increase in Production Efficiency • Flexibility … every single detail … 8 September 2008

Strategic Objectives … every single detail … 9 September 2008

Strategic Objectives Technological Leadership • • • To maintain technology leader position in Europe Develop and deliver technologically advanced products for the market To work with our customers and suppliers in developing new products ahead of the market Market Growth Opportunities • • • New capacity installations in line with market demand To have sufficient capacity to satisfy the leading European manufacturers Monitoring M&A opportunities to become most strategic supplier to global customers Delivering Financial Performance • • • Growing revenues in line with market growth To maintain our leading margin position in the industry Use cash flow to support expansion, repay debt and to pay out dividends … every single detail … 10 September 2008

First 9 Months and Q 3 2008 Financial Performance … every single detail … 11 September 2008

9 Months and Q 3 2008 Key Highlights • Markets and Business • • EBITDA up by 0. 8% yoy in 9 M 2008 and by 4. 7% yoy in Q 3 2008 • High net profit of EUR 23. 5 million in 9 M 2008 mainly due to unrealized FX gains and lower interest expenses • Financial Performance Revenue growth of 22. 1% yoy in 9 M 2008 on the back of higher production output and annual growth in material prices Steady net debt levels after the dividend pay-out and financial stability • • The polymer price decline should positively impact EBITDA in Q 4 2008 Higher stock levels of finished products due to demand decline from the construction industry should continue also for the rest of this year Negotiations with customers for 2009 to-date are satisfactory in terms of committed volumes • Profitability was mostly affected by CZK development, volatility of polymer price indices and higher stock levels related to a lower demand for technical materials • Growth & Technology Finalisation of investment incentives conditions related to the possible construction of the next production line • • PEGAS will continue monitoring M&A opportunities … every single detail … Commercialisation of new R&D projects and anticipated launch of pilot equipment for plasma treated nonwovens 12 September 2008

9 M and Q 3 2008 Profit and Loss Statement Note: Unaudited consolidated financial results in accordance with IFRS. 9 M 2007 Results include the one-off revenue from the arbitration proceeds of Euro 1. 03 million … every single detail … 13 September 2008

Cost Composition Cost Breakdown in 9 M 2007 Cost Breakdown in 9 M 2008 6% 31. + • • Overall cost level impacted by additional production capacity, higher prices of raw materials and energy and CZK appreciation Staff costs positively impacted by the fair value of phantom share option plan in 9 M 2008 Polymers and electricity up by 30. 8% and 62. 2% yoy respectively, due to higher consumed volumes based on the new production line and higher energy prices Depreciation higher due to the new line and CZK appreciation … every single detail … 14 September 2008

Balance Sheet • • Increase in inventories on the back of higher stock of raw materials and spare parts Stable net debt / net cash position after the dividend pay-out confirming strong and secure financial position of the Company Note: Unaudited consolidated financial results in accordance with IFRS … every single detail … 15 September 2008

Cash Flow Statement Note : Unaudited consolidated financial results in accordance with IFRS … every single detail … 16 September 2008

CAPEX Development CAPEX Breakdown Q 3 € 3. 5 m CAPEX Breakdown 9 M € 18. 7 m (80. 0)% (4. 8%) € 17. 8 m € 0. 7 m Source: Company data • • Expansion CAPEX in 2008 relates to the remaining payments for the 8 th line project Full year 2008 CAPEX Guidance of Euro 18 million at constant currency of CZK/ EUR 26 … every single detail … 17 September 2008

2008 Guidance • The achieved results in the first nine months of 2008 indicate a strong position of the Company in its core market and an outstanding performance in a highly volatile financial and economic environment • Number of unforeseen developments had negative impacts on the financial performance to date - lower demand for technical materials, unexpected appreciation of the CZK and extreme polymer price volatility in 2008 • In Q 4 2008 the Company will benefit from the decline in polymer prices • EBITDA for the full year is expected to exceed the one achieved in 2007, however the communicated guidance range might not be met … every single detail … 18 September 2008

2009 Outlook • Negotiations with customers to-date for 2009 indicate that production capacity should be sold out • Level of inventories should decline in Q 2 and Q 3 2009 • Anticipated further debt repayment to improve leverage if no other investment opportunities materialize • Rising operating costs and lower demand for technical materials leading to more competition in hygienic segment • Tailormade R&D projects to satisfy needs of key customers … every single detail … 19 September 2008

Appendix … every single detail … 20 September 2008

Relevant Market Overview - Spunmelt European Spunmelt (SM) Nonwovens (PP/PE) Market (2004 -2009 e) • • Nonwovens spunmelt PP/PE market in Europe was growing 11% CAGR (2004 -2007) • PEGAS market share in Europe is currently 10. 4% based on 2008 production output PEGAS market share in Europe was rising by 14. 7% CAGR (2004 -2007) – faster than its core market as a result of regular capacity additions Source: EDANA, PEGAS … every single detail … 21 September 2008

Market Overview - Hygiene European Nonwovens Spunmelt Hygiene Market (2004 -2009 e) • • • European hygiene nonwovens market expanded 7. 4% CAGR (2004 -2007) • PEGAS’s production for the hygiene market grew 15% CAGR from 2004 to 2007 in line with the core hygiene market European spunmelt hygiene nonwovens market grew 16% CAGR (2004 -2007) PEGAS market share in European hygiene spunmelt market is anticipated to reach 16% in 2008 Source: EDANA, PEGAS … every single detail … 22 September 2008

Overview of European Production Capacity Installed capacity 1 in % – 2008 e EOP • PEGAS is no. 2 producer of spunmelt nonwovens in Europe in terms of installed production capacity • European market has a stable surplus of exports over imports in spunmelt nonwovens, app. 98 thousand tonnes in 2007 • • Share of capacity base held by modern, state-of-art technology is expected to increase and equal approximately 87% in Europe at the end of 2008 driven by needs of hygiene customers European market is more fragmented than other region with over 30 producers in total Source: PEGAS, John Starr Note: 1) Installed spunmelt production capacity in Europe estimate, end of period 2008 … every single detail … 23 September 2008

Capacity vs. Demand in Europe Position of PEGAS • Supply vs. Demand proportion creates healthy market competition The annual capacity increase in the European spunmelt nonwoven market between 2003 – 2007 was approx. by 72 k tonnes • In 2007, 49 k tonnes were added in Europe. In 2008 and 2009 capacity is expected to increase on average by 39 k tonnes • End market is growing by 5 -6% p. a. (by 28 -30 k tonnes in spunbond hygiene demand), the difference is as usual balanced by less than 100% utilization of capacities and European exports • Structure of Capacity Increase is favourable for PEGAS … every single detail … 50% of new capacities to be added in 2008 -2009 represent unattested technologies • 37% of new capacities to be added in 2008 -2009 represent new entrants into the industry • Structure of new capacities to be added in 2008 - 2009 is highly advantageous for PEGAS and represents new market opportunities for growth 24 September 2008

European SB New Capacity Overview 2006 -2007 by Segment 2006 -2007 by Technology 2008 -2009 by Segment 2008 -2009 by Technology 2006 -2007 by New Entrants 2008 -2009 by New Entrants Source: John Star, Company data … every single detail … 25 September 2008

Revenue Breakdown by Product Q 3 9 M 15. 6% 21. 9% 42. 9% 9. 4% 16. 0% Source: Company data • Sales for the hygiene industry in the first 9 M 2008 accounted for 86. 6% share of total revenues confirming a strong performance in this segment • Rising share of technologically advanced materials on total sales - 25. 5% in the first 9 M 2008 up from 21. 8% in 2007 Note: Company defines technologically advanced products as those with higher added value in terms of either higher margins or material properties that protect the Company from easy substitution of its products by its competitors. … every single detail … 26 September 2008

Revenue Breakdown by Geography 1 Q 3 9 M (2. 4%) 5. 0% 58. 7% 59. 1% (8. 3%) 95. 8% Source: Company data • • Sales in Western Europe remain a key focus with over 50% share on total revenues Sales in CEE and Russia substantially up due to increased sales to the Czech Republic and Poland Note: (1) Revenues by georgraphy are based on the final location of delivery … every single detail … 27 September 2008

Personal hygiene market in Europe Baby care • Multinationals (P&G, Kimberly-Clark, SCA, Johnson&Johnson, Ontex, etc. ) • Regional leaders (e. g. TZMO in femcare in Poland) • Market leader (P&G) commands nearly 50% market share where the top three players control approximately 75% of the market Feminine care • We supply most of the key players in Europe • Adult incontinence Market consists of three major groups: - Baby care (70% of consumption) - Feminine care (10% of consumption) - Adult incontinence (20% of consumption) … every single detail … Source: Company 28 September 2008

Pass-through mechanism delays Development of PP Price Level 1 Avg. 2006 1, 158 Illustrative Pass-through Delays 2007 Avg. 2007 1, 203 Q 1 Q 2 Q 3 Q 4 Sales Costs of PP PP Composite Index Positive EBITDA impact • • • Avg. 2007 prices of polymers increased by 4% yoy • Negative EBITDA impact of the delays for 2007 was Euro 0. 8 million Regardless of other factors impacting the total costs, polymer costs remain its key driver Changes in polypropylene prices are transferred to revenues with a delay according to the contracts with customers Source: Company data Note: (1) PP price level calculated on internal documents of PEGAS … every single detail … 29 September 2008

PEGAS Organizational Chart … every single detail … 30 September 2008

Reporting Schedule and IR Contact Investor Relations : Tel: +420 515 262 450 Fax: +420 515 262 505 E-mail: IRO@pegas. cz … every single detail … 31 September 2008