JSC  "Latvijas balzams" informs, that the development of the project of

spirit  factory  construction  has  not  occurred  because  of  several

reasons.  Firstly,  JSC  "Latvijas balzams" has not received government

confirmation  concerning  tax  allowance,  according to legislation, in

case of investments, which exceed 10 million lats.

Secondly,  the  construction  project had been developed two years ago,

and since that time economic environment has been changed. As a result,

the  economic  substantiation  of  the  project   also  changed. If the

government  takes  a  decision to grant the tax allowance in respect of

the  investment,  then  JSC  "Latvijas balzams" will decide again about

further development of the project.



R. Gulbis

Chairman of the Board

JSC "Latvijas balzams"