A/s  'Salacgrīva-95'  financial  and  economic  operations in the first

quarter of

1998  went  according  to the budget approved for 1998. Net turnover in

the  first  quarter  was 1,826,498 Ls, which exceeds the budgeted one (

1,400,000 Ls) by 30%.

In  1997 an agreement was signed between a/s KAIJA and a/s SALACGRĪVA -

95

regarding  sales  of the produce of the latter. During the first months

of  the  year there was a fierce price competition in the market, which

was  adverse  to  a/s  SALACGRĪVA`95  produce. Therefore February sales

through  a/s  'Kaija'  were notably behind the target, and a resolution

was taken to terminate the former agreement. Starting with March, 1998,

a/s 'Salacgrīva-95' is doing most of sales of fish products on its own.

According  to  the 1998 budget, a loss of 29,000 Ls was planned for the

first quarter of the year, which is close to the actual results: a loss

of 31,439 Ls.

A/s  'Salacgrīva-95'  budget  plans to earn the largest share of profit

during  the summer months, when traditionally an increase in demand for

fish products is observed.

In April, the company sales go in compliance with the agreements signed

and  the  budget. Recently the prices of fish products have dropped due

to  the  complicated  present  economic  relations with Russia. Company

management  is  actively  undertaking the activities in search of sales

possibilities  in  the  Ukraine,  Kazakhstan,  Kyrgyzstan,  Moldova and

Uzbekistan.

A full report is available from

<a href='http://www.rfb.lv/other/listing/reports/sg95.xls' target='_blank'>http://www.rfb.lv/other/listing/reports/sg95.xls</a>