OREANDA-NEWS. June 14, 2011. Kernel suggests Shareholders to authorise again the board of directors of the Company to increase the Company's share capital within the limits of the authorized capital which you may adopt at the next extraordinary general meeting of shareholders of the Company to be held before a Luxembourg notary, on or about 15th June 2011, especially to fix said authorised capital, excluded the current issued share capital, at one hundred eighty four thousand four hundred and seven US Dollars (USD 184,407) to be divided into six million nine hundred eighty three thousand five hundred and twenty five (6,983,525) shares without indication of a nominal value.

We further suggest you to authorize the board of directors, during a period no longer than a term of five (5) years from the date of the publication of the present authorisation in the Luxembourg official gazette (Memorial C, Recueil des Societes et Associations), to increase in one or several times the subscribed capital within the limits of the authorized capital and to issue new shares with or without share premium, as the board of directors may determine, to proceed to such issues without reserving for the existing shareholders a preferential right to subscribe to the shares to be issued and to delegate to any duly authorized person the duties of accepting subscriptions and receiving payment for shares representing part or all of such increased amounts of capital.

The board of directors is of the opinion that the existence of a preferential subscription right for the benefit of the existing shareholders will seriously reduce the flexibility of the Company to carry out the above capital increase(s) in the Company in the most efficient and timely manner and, in addition, would risk delaying any increases of share capital and issues of new shares at a moment or during a transaction where timing may be of essence. Thus, it would be beneficial for the Company to be able to issue new shares without reserving a preferential subscription right.