Lifosa AB

Company event



Performance results for the period from January through September 2004



Income of Lifosa AB for 9 months of 2004 totaled LTL 381.598 m and as compared

with the corresponding period of 2003, during which sales income summed up to

LTL 324.928 m, it grew by 17.4%. Higher selling prices of all products of the

company and a wider choice of conditions of sale for the buyers resulted in

income growth. 

The sales of the main product of the company, diamonium phosphate fertilizer, 

amounted to 540.8 thousand tons over the reporting period. Lifosa AB earned LTL

23.267 m of pre-tax net profit by IAS in three quarters of the year. A

successful performance of the company during the nine months of 2004 was

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

fertilizers in the market.  The price of diamonium phosphate in the Q3 2004 in

the worldwide markets reached the heights of November 1995. Strong demand of

diamonium phosphate in Europe and Asia as well as limited supply enable the

producers to pursue progressively higher selling prices of phosphate

fertilizers.

Another important factor that has influenced a more efficient performance of the

company was the termination on July 1, 2004 of the exclusive distribution

contract with Cargill Crop Nutrition. The sales arrangements

through the holding Evrochim made it possible to avoid commissions and better

represent the interests of the company.





Regvita Ivanoviene

Finance Director

(+370 347) 66 331