Hereby JSC Latvian Shipping Company (LSC) informs that 23 January 2004,

considering  the  latest  changes  in  the  world  financial markets, a

resolution  was  passed  by  LSC  Board  of  Directors  to postpone the

disposal of three Panamax product tankers Rīga , Zemgale and Latgale .

The  decision  to  sell  three  Panamax  tankers,  built  in  2001, and

immediately  charter  them  back  from  the  buyers was approved by LSC

Supervisory Council in late 2003 in order to release funds required for

the purchase of new ice-class tankers.

Since  the  deal  had  not  yet  been  done,  the  company made another

assessment  of  the  potential  benefits from the Panamax tankers sale,

that  revealed dramatic changes in the market situation compared to the

end  of 2003. A considerable increase was registered in the newbuilding

prices, while the sales price offered by the potential buyers of Rīga ,

Zemgale  and  Latgale  turned  not  so  attractive due to the lower USD

exchange  rate. Therefore the disposal of three Panamax tankers for the

purpose  of  making investments in new modern vessels now appears to be

economically unsound.

M/t  Rīga  ,  Zemgale  and Latgale will remain LSC Group's property and

part  of its fleet, while the company's experts will follow the changes

in the international shipping market in order to revert to the question

of the vessels disposal subject to favourable market conditions.



Additional information:

Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120, 9287169

Fax: +371 7820239