1. Target company

Public  joint  stock company "Viesnīca Latvija", registered on December

3,  1991  at Company Register of the Republic of Latvia, registration #

000304016,  legal  address  55  Elizabetes  St.,  Riga,  LV-1010, phone

7772222

2.Offerer

JSC  "RIOS",  registered on February 6, 1997 at Company Register of the

Republic  of Latvia, registration #40003327635, legal address 16 Audēju

St., Riga, LV-1563, phone 7686100.

3.Type of offer

Mandatory  buyout  offer  is  announced  pursuant  to the provisions of

Article  65,  part  1  of  the  law "On Securities" due to a holding in

"Viesnīca Latvija" giving over ¾ of votes at a shareholders' meeting.

4.Securities code

ISIN code: LV0000100865

5. Buyout price

"RIOS"  offers  to  buy  out  the target company shares at LVL 0.45 per

share.

The   price  has  been  calculated  following  FCMC  Supervisory  Board

Resolution #17/5 "Regulations on buyout of shares" of November 2, 2001,

and amendments on April 4, 2003.

6. Payment and settlement procedure and terms

Payment is due within 5 business days after the offer validity deadline

specified  in  Item  7  of this offer. Share buyout is organised on the

basis of Delivery Versus Payment principle.

7. Validity of the offer

The  offer  is  valid  for  the  target  company  shareholders during a

ten-week  period  starting  with  the  next  business  day  following a

publication   of   the   offer  in  the  official  newspaper  "Latvijas

Vēstnesis".

8. Accepting procedure for the target company shareholders

The  shareholders  willing to respond to the buyout offer shall deliver

their  sell orders to their custodians (a bank or a brokerage company).

The  order  shall  specify  the number of shares and the securities and

cash  account  details of the offerer. The custodians shall deliver the

orders  to  "Latvijas  Krājbanka", 1 Palasta St., Brokerage Department,

contact  person Andrejs Martinovs, phone 7092990, from 10.00 till 17.00

on business days - for review and execution of the orders.

The  offer  document  is  available  for inspection at 75 Brīvības St.,

Riga,  R1,  Maija  Beķere,  phone  7271736  ,  from 10.00 till 17.00 on

business days, as well as on the Riga Stock Exchange website.

 9. The intentions of the offerer with regard to takeover of the target

company, its business in future, management and employees

JSC  "RIOS"  presently  owns  94.4%  of  JSC  "Viesnīca  Latvija" share

capital,  or  4,661,181  shares. The buyout will increase the offerer's

ownership  interest.  RIOS  intends  to  retain  the  present  business

strategy and to maintain the services provided by the company, and also

expects to expand. The expansion will include building of a multi-level

parking  lot  and  expansion  of  the conference hall block. The target

company   has  no  intentions  to  change  the  staff  numbers  or  the

management.  It  is  planned  to  call  JSC  "Viesnīca Latvija" general

meeting  of  shareholders  for  taking  the resolution to transform the

company into a closed joint stock company.



July 22, 2003

Vladimirs Bļinovs,

Chairman of Management Board, JSC "RIOS"