LIFOSA

MATERIAL EVENT



RESULTS FROM OPERATIONS FOR THE YEAR 2003



(Unofficial Translation Done at the NSEL)



During 2003, Lifosa AB sold 733 thousand tonnes of its main product,

fertilizers of diammonium phosphate. A rhythmic supply of the main raw

materials, apatite and ammonium (from enterprises owned by the Lifosa

shareholders (Eurochem)), allowed the company to enhance the use of production

facilities and increase the sales of  diammonium phosphate by 11.7%  compared

with those in 2002.



In 2003, the sales of the feed phosphate - monocalcium phosphate and dicalcium

phosphate - augmented almost threefold, from 10.3 thousand tonnes to 30.2

thousand tonnes. Although in 2003 the prices of feed phosphates dropped and the

profit margin received by their producers reduced compared with 2002, increase

in the demand for feed phosphates and the growth in the price is anticipated in

the near future. Taking this fact into consideration, Lifosa AB intends to

continue expansion of sales of this product by reducing the share of costs per

tonne of this production as well as increase of the assortment of the feed

phosphates by introducing monodicalcium phosphate into production and

strengthening its position on the European market as a major producer of the

feed phosphates.



In 2003, revenues of Lifosa AB increased by 12,9% (from LTL 383.3 m in 2002 to

LTL 432.8 m in 2003), irrespective of the negative impact  on revenues in litas

of the prolonged fall of the dollar rate in respect to the litas.  The average

sales price of diammonium phosphate went up from USD 143 to  USD 167 per tonne.

All through the year 2003 the prices of phosphorus fertilizers retained the

growing tendency, which is forecast to continue in 2004.



According to the preliminary data, in 2003 Lifosa AB earned an unaudited net

profit of LTL 11.98 million. In 2003, the company failed to achieve even better

results because of the gradually increasing production costs and especially

fast rise in the price of the ammonium phosphate. Mandatory payment of

restructurisation debts and interest on them to creditors was carried out on

schedule as prescribed in the Restructurisation Plan. The final financial

result for the year 2003 is under inspection of the auditors and will be

announced soon after the auditor’s conclusion is received.





Regvita Ivanovienė

Finance Director

(+370-347) 66 331