The Board of Directors on its meeting of January 27, 2006 has approved the sale of the 98% stake of the shares in the Italian subsidiary F.G. ITALIA S.p.A. which also represents the percentage of ownership in the aforementioned company. The sale price has been agreed to Euro 245,000 amount that represents the book value of F.G. Europe's investment in F.G. Italia. The gain of the transaction amounts to Euro 95,000 equal to the write down in value that has been recorded in F.G. Europe's financial statements as of December 31, 2004. The decision for the sale of the subsidiary has been taken in the course of cost reduction and the assumption that the development costs for the subsidiary until the coverage of F.G. Europe's promotional needs on the Italian market will be significantly high. For that reason the management decided the cooperation and development of the company's operations (in the fields of marketing, logistics and after sales services) on the markets abroad to be outsourced to local partners that have the necessary know how of the local markets and moreover assures costs at a constant level.