LIFOSA

MATERIAL EVENT



REGARDING REDUCTION OF THE AUTHORIZED CAPITAL



(Unofficial translation done at the NSEL)



With reference to the resolution of the General Meeting of Lifosa AB held on

17 April 2003, the Securities Commission adopted a decision at the meeting of

22 May 2003 (Minutes No. 11) to satisfy the application of Lifosa AB to reduce

the authorized capital from LTL 220 800 000 to LTL 97 893 900 and to reduce the

nominal value of shares from LTL 20 to LTL 10.





Regvita Ivanovienė

Finance Director

(370 347) 66 331