JSC  "Latvijas kuģniecība" Chairman of Management Board Ģirts Rungainis

forecasts  that  over  a  seven year period the investment in upgrading

LASCO tanker fleet would amount to USD 330 million.

The  company  strategy  for  the  time period between 2003 and 2010, as

approved by AGM of shareholders on May 30, 2003, envisages setting up a

joint  venture:  only attracting a large scale investment would make it

possible to implement the LASCO Group fleet upgrading and restructuring

strategy.  The  upgrading plan provides for purchasing  ten new tankers

and  two  medium-size tankers. All the new vessels would be under LASCO

commercial  and  technical  management:  a  buyout  of these vessels is

provided for in future.