In 2000, owing to investment and "know-how" from Iceland, operations of

a  new  company  in  candy production business, SIA "NOI Baltija", were

started.

Production  equipment  imported  from Iceland allowed the company to be

the  first  in  the  Baltics to start the manufacturing of jelly-candy.

Production  equipment  for  glazing  different  types  of  products was

imported as well.

 SIA  "NOI  Baltija"  owners  proposed to sell 100% of the company. The

offer reached "Staburadze" on August

22,  2000.  "Staburadze" Management Board gave a thorough consideration

to  the offer and resolved to make an acquisition at the value of share

capital, which is 523100 Ls. The acquisition is expected to pay back in

2-3

years.  Total  value  of production equipment, invested by the previous

owners, amounts to 457100 Ls.

 "NOI Baltija" launched the production and sales of jelly-candy "Amma®"

and  popcorn  in  chocolate  "Bombas®" in October 2000; both brands are

sold in the domestic market.

 In  December  the  company had net sales of 19200 Ls. It is planned to

triple the figure within the six coming months. For Latvian market, the

average monthly sales target for 2001 is 29000

Ls.

   Starting  with  March  2001  "NOI Baltija" is planning to export its

produce  to  Estonia  and  Lithuania,  consequently,  to  attain better

utilisation  rate  of  production  capacities (currently 50-52%). Total

average  monthly turnover is expected to reach 57000Ls, which will give

a monthly profit of about

6700  Ls.  Meanwhile, the company is operating in one shift; at a later

stage, when production volumes increase, more shifts are possible.

Apart  from  that,  it  is planned to modernise the production process,

thus to increase the output volumes and, consequently, profits.