On  27th March 2000, a public offering for cash of State-owned Latvijas

Gaze shares was successfully completed. 10,713,158 Latvijas Gaze shares

were  sold  in  the  biggest  public  auction  in  Latvian history. The

offering  represents  26.85% of the Company's share capital and reduces

the Government of Latvia's holding to 10.0%. This was a further step in

the Company's Privatisation.

The  auction  price per Latvijas Gaze share was LVL 2.63, which exceeds

the  current  stock  market  price  by LVL 0.55 and by 0.83 the minimum

auction   price  -  LVL  1,80  per  share.  It  is  expected  that  the

Privatization Agency will confirm the results of the auction this week.

Latvijas  Gaze  shares  are  quoted on the Riga Stock Exchange official

list.  The  Riga  Stock  Exchange acted as Arranger, and Hansabanka and

Nomura International acted as Financial Advisors. The proceeds from the

offering will

be  spent  on  compensating  persons politically affected by the Soviet

Era,  on  building of Latvia's hall in the EXPO 2000 exhibition as well

as  to  meet  the  claims  of  employees  of insolvent state-controlled

companies. The largest

Latvijas  Gaze  shareholders  as  at  March 26th were the Government of

Latvia, Gazprom, Ruhrgas,  Preussen Elektra,

Itera and Fortum.

Notes  to  EditorsLatvijas  Gaze  is  one  of  the largest companies in

Latvia.  Its  main  operations  are  the  importation,  transportation,

storage,  and  distribution  of  gas to both industrial and residential

clients.  The  company owns 6.4 billion cubic metres of underground gas

storage  facilities,  the  only  gas storage construction in the Baltic

region.

The  Company's  sales  in  the  11  months to November 1999 were US$128

million  and  its  net  profit  US$13.6  million.  During  same period,

Latvijas  Gaze  sold 1.059 billion cubic meters of natural gas and 28.5

thousand tons of liquid gas.

Additional information:

Ilze Nagla

Director of Riga Stock Exchange

Public Relations Department

Phone:  +371 7212 431

Maris Manchinskis

Head of Capital Markets

Hansabank Markets

Phone: +371 7024 161

Helen Wykeham

Capital Markets

Nomura International

Phone: +44 207 521 2524

Kristine Stepina

Hill & Knowlton, Latvia

Phone: 7 240 571