Hereby JSC "Latvijas kuģniecība" (LASCO) informs that pursuant to Board

of  Directors'  resolution of 10 December 2003, approved by Supervisory

Council,  an  agreement  has  been  reached  between  3 Maj shipyard in

Croatia  and  LASCO  100% owned subsidiary Crown Navigation Inc. on the

building  of  eight  product tankers. The Shipbuilding Contract for the

first  vessel  has already been signed. The Contracts for further seven

sistervessels will be signed after they are prepared.

Yesterday, 12 January 2004, in the afternoon the agreement reached by 3

Maj  and  Crown  Navigation  Inc.  was approved the shipyard's Board of

Directors.

Negotiations have been conducted by LASCO with a number of banks, which

expressed  their  interest  in  taking  part  in  the  financing of the

project.  It  is  planned  that  bank loans will cover 70% of the total

project costs, while 30% will be financed by LASCO Group itself.

The 51 800-deadweight-ton tankers will be constructed to carry both oil

and  chemical  products.  The first tanker is scheduled for delivery in

2006, while further seven sistervessels - by 2008.

For  the  Shipbuilding  Contract  to come into effect, Crown Navigation

Inc.  shall by 31 March 2004 have received a reputable bank's guarantee

on  reimbursement of the amounts paid in case of non-performance of the

Contract by 3 Maj  shipyard.



Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120, 9287169

Fax: +371 7820239

E-mail : ozolina@lsc.riga