Management Report on Company Business
Activities and Assets

RESEARCH AND DEVELOPMENT

Research and development focuses on technological and technical innovation, research into and evaluations of the mining conditions with regard to workable seam overburden, and research into pit water. Between 1999 and 2001, the Company was involved in the research and development of goals within the project called 'Cutting-edge Technology Centre', sponsored by the Ministry of Industry and Trade of the Czech Republic. In 2001, eight improvement proposals were submitted at the Company, of which five were accepted for use.
The Company owns the following trademarks: 'Kassel extract(industrial chemicals, colourings); 'Dralig(chemicals for industry, scientific purposes, agriculture, forestry, gardening,and veterinary medicine); 'Fortheum(chemicals for industry, scientific purposes, agriculture, forestry, gardening, and veterinary medicine); and the logo 'SD'. The Company also holds four licensing agreements for the registered trademark 'SD'with its subsidiaries SEVEROČESKÉ DOLY – VTP, SD – Autodoprava, SD – 1.strojírenská,and SD – Kolejová doprava.