Kjaer Group''s 2003 Annual Report describes the company''s progress in implementation of the Global Compact principles. Under the "Impact on External Environment" section, the Annual Report illustrates the company exemplary services in the environmental realm in both developing and industrialized countries (see page 9 of the report).

The report addresses the environmental principles (7-9) of the Global Compact and specifically. The report provides that in Uganda and Mozambique, the Group cooperates with Danida''s Private Sector Programme on environmental improvements and complies with the Code of Conduct specified by the Industrialisation Fund for Developing Countries (IFU) (see page 9 of the report).

Furthermore, the Global Compact and its principles are highlighted on the company''s website and on its News Letter "Making a Difference"? which is distributed to employees worldwide, all business partners and friends of the company. The Global Compact and its principles were also advertised at the company''s General Meeting held on 25th May 2004.

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The company:

- was awarded "Denmark''s Best Workplace 2003"
- was re-certified as an Investor in People in June 2004
- had the pleasure of receiving His Royal Highness Prince Henrik of Denmark in September 2003
- was listed in Top 100 Best Work Places in Europe 2004
- received the MIA-prize* in March 2004

* The MIA-prize is founded by Institute of Human Rights and given to one company in Denmark who actively encourages diversity and consistently prevent discrimination.

We will maintain advertising the Global Compact and its principles on our web page, in our News Letters, in our Annual Review and in external as well as internal presentations.

Furthermore it is our intension at some point in time to publish a Sustainability Report evaluating progress.