13.09.2004, Ditton pievadķēžu rūpnīca, RIG

1.      2003 Annual Report



The  2003  Annual  Report has been prepared in compliance with the law.

The company has worked at a profit of LVL 92,223. The auditor's opinion

of April 2, 2004, is unbiased and coincides with the conclusions of the

present audit.



2.      Violations of Law on Company Group (Concern) Article 3.7.8 1.



The  applicant's  notification  to  Management  Board regarding control

interest  in  the  company has not been supported by any documents. The

Management  Board  may  not  take  any  resolutions  regarding  control

interest  without  respective  source  documents.  Proceeding  from the

above,  there is no reason to believe that Management Board has grossly

violated Law on Company Group (Concern) Article 3.7.8 1, as referred to

in  the applicant's application, including, delivering the notification

of  Company  register  on  control interest, and reflecting the control

interest in Annual Report.



3.       Material  events  or  deals  that contradict the shareholders'

interests.



No  groups  or  partners  have been identified in 2003 that would bring

losses  to  the  company.  Any prices and costs in 2003  are reasonably

comparable  to  previous  periods  and to global market prices, and the

transactions   terms   are   compliant   with  Incoterms  2000  and  EU

Steelworking Association recommendations. Transactions that are related

to core business contribute over 98% of sales.



Final  conclusion:  the  auditors  do not have a reason to believe that

there  have  been any transactions in 2003 that would be detrimental to

shareholders' interests. Full text of audit opinion is available at the

company  secretary  (4th F of Administration building) on business days

from   9:00   till  16:00  between  September  10  and  25,  2004.  The

shareholders  will  be  introduced  with the opinion on general meeting

after the prohibition to call the meeting has been cancelled.