Riga Stock Exchange requests more disclosure from JSC "Kaija"

19.02.2004 RIG

Further to the information on JSC “Kaija”, released to the public on February 17, 2004 by news agency BNS, the Riga Stock Exchange (RSE) Management Board requests that the company management board disclose the following:

1. When and to whom did “Kaija” sell its property; what were the auction rules and start price? In what way were the rules made available?
2. Was the valuation of the property carried out prior to selling? Who were the valuators? Please provide the valuation results.
3. Has the buyer paid for the purchase yet? When and in what manner?
4. Who is the buyer? If a legal entity, owned by whom?
5. What is/was the legal relationship between “Kaija”, or its officials, with the property buyer – either a natural person or a legal entity?
6. Does “Kaija” own any other property right now? What is its legal status?
7. Please specify the “investor” who is ready to invest in “Kaija” production facilities; in what way will it be done?
8. What is the legal relationship between “Kaija” and the investor? Please provide the documents certifying the commitments mentioned in question 7.
9. Please provide the conditions of production facility lease agreement, and the rent amount.
10. What are the conditions for SAPARD project implementation?
11. Disclose “Kaija” liabilities (size, lender, maturity, when how will be paid off).

Apart from that, the company has to provide to the RSE:
– The restructuring plan mentioned in the BNS news
– Documentation certifying the above decisions – excerpts from the minutes of shareholders’, Supervisory Board and Management Board meetings resolving on the above mentioned restructuring plan, or any other relevant decisions. The documents have to clearly demonstrate who has taken the respective decisions.
The responses to the information request, together with the documentation, have to be provided to the RSE by February 26, 2004.

Currently “Kaija” shares are traded on Surveillance list.

For moore information, please contact:
Krista Grīntāle
Director of Corporate Communications Department
Phone: + 371 7212431