JSC "Rēzeknes piena konservu kombināts" reports that as a result of the

financial  crisis  in  Russia,  and  due to the decision of the Russian

government  about  restructurization  of short term Government Treasury

Bills,  the  settlemet  of  payments  with and deliveries to Russia are

suspended.  The  stocks  of finished goods on 01.09.98. were 192.7%, if

compared  at  the same time in the previous year. The value of finished

goods  on  01.08.98.  was LVL 5162.8 thousand. The sales volume for the

eight  months  of  this year is 91.1% of that in the same period of the

previous year.

Rēzeknes  piena  kombināts  does  not have any investments or assets in

Russia, the Ukraine or other CIS countries.