25.08.2004, Ditton pievadķēžu rūpnīca, RIG

JSC  "Ditton pievadķēžu rūpnīca" Supervisory Board and Management Board

believe that the activities initiated by a group of shareholders to put

an  embargo  on  share  transfer  and  to prohibit the calling together

general  meeting  of  shareholders  are  contradictory to principles of

democracy  in  a  public  company,  are  a  violation  of shareholders'

economic rights and their rights to corporate governance. There is also

a concern on behalf of partners, creditors and potential investors.



As  a  result  of  internal  differences in the company and between the

shareholders,  initiated  in  2003  by  consulting  company "Neibergs &

Partneri"  and  "Inter  Corp",  both  represented  by  one and the same

persons,  the Company already faced problems due to losing business and

trade partners. The partners find it difficult to trust the Company and

plan  long-term  projects  if  the  shareholders  are  fighting between

themselves.  As  a  result,  the Company lost its main trade partner in

Russia,  contributing  over  LVL  2  million  per  year  in  sales. The

aftermath  was  immediate:  in  the first half ot 2004 the sales figure

went down, and, consequently, also the revenues and profits.



Supervisory  Board  and  Management  Board hereby warn the shareholders

engaged  in fighting: this can lead to serious detrimental consequences

to  the  Company.  Shareholders  are  invited  to  refrain  from  hasty

decisions and to carefully consider the consequences.



Supervisory  Board  and  Management  Board  do not believe that it is a

regular practice when absolutely all and everyone shareholder is barred

from   company  management;  furthermore,  when  majority  shareholders

holding  over  half  of  votes are barred from company management. This

contradicts the principles of corporate governance in a public company.