Lifosa AB

Company event



Results for the first six months of 2004



Income of Lifosa AB for the first six months of 2004 amounted to LTL 243.1 m and

if compared with the same period of 2003, during which income from sales reached

LTL 206.7 m, it grew by 17.6 %. The income growth was a result of the higher

selling price of the main product of the company - diammonium phosphate

fertilizer. The amount of such fertilizers produced during the reporting period

totalled 355.2 thousand tons; the amount sold equalled 362.7 thousand tons.



Lifosa AB earned LTL 3.06 m of unaudited net profit by IAS in the first six

months of 2004.  Without taking into account a negative exchange rate impact,

the net profit of the first half-year totalled LTL 7.45 m. During the second

quarter of 2004, Lifosa AB earned a net profit of LTL 13.2 m, which covered the

accrued losses of the first quarter, and ended the half-year with profit.



A successful performance of the company in the first six months of 2004 was

determined by a favourable situation, which arose for the producers of phosphate

fertilizers in the market.  Strong demand for diammonium phosphate in Asia

permitted to concentrate sales of the second quarter in Pakistan and Turkey. A

positive influence to the performance of the company in the second quarter was

made by a drop in the price of ammonium, one of the main raw materials for the

production of diammonium phosphate, and a significant decrease in the residue

amount of the manufactured produce.





Regvita Ivanoviene

Finance Director

(+370 347) 66 331