A/s "Latvijas balzams" - sharply increases its export volumes 



During  the  first  half  of this year, A/s "Latvijas balzams" (LB) has

achieved notable results in export markets. Likewise, during the second

half  of 2004, one of LB's priorities will be to maintain this increase

in  its  exports. Particular emphasis is being placed on exports to the

Baltic  States,  as well as entry into the EU market. The company plans

to  increase  the  volume  of  its exports to countries such as Poland,

Greece,  the Czech Republic and Slovakia. Parallel to this, the company

intends to maintain its position at the head of the domestic market.



LB's  leading  shareholder  is  "S.P.I. Distilleries. B. V." which owns

6,595,745  shares  or  87.98% of the company's equity capital. Sizeable

investments  have been carried out within the company during the period

since S.P.I. Group became the company's leading shareholder. During the

past  two  years more than Ls 8 million has been invested in increasing

production   capacity   and  facilitating  operational  development  in

accordance  with  the  growing  demand in the domestic market for light

alcoholic  drinks  and the fulfilment of significant export orders. The

company  has  doubled  production  capacity, thanks to important export

orders and the export of products bearing the company's own brand. 



Turnover and profits - up 



During  the  first  half  of  this  year, LB's turnover reached Ls 25.9

million,  which  represents an increase of 13.5% on the figure from the

corresponding  period  in 2003. During the first half of this year, the

company  enjoyed  a  7.6% increase in domestic market sales compared to

the  corresponding period in 2003. The growth in the domestic market is

attributable  to  marketing  activities  as  well  as the launch of new

products.



Profits  during the reporting period reached Ls 407,000 which is almost

twice as much as during the first half of 2003 (Ls 214,000). During the

first  half  of  2004,  LB has deposited Ls 11.4 million into the State

budget.



LB increases its presence in other countries 



A  notable  increase in sales has also been achieved in export markets.

Compared  to  the  first  six  months  of 2003, sales in export markets

increased  by  102%.  During  the first six months of 2004, sales to EU

member  countries, compared to the same period during 2003 increased by

156%. Sales to Lithuania and Estonia increased by two and a half times.

   



             "It's an honour when we are able to successfully implement

the  goals set for this year - to increase export volumes and enter new

markets.  LB  is sufficiently powerful in the domestic market, now this

Latvian  company  is  able to operate in the markets of other countries

and  to  increase  its  presence  in  other  markets," stresses Rolands

Gulbis, a/s "Latvijas balzams" Chairman of the Board.

 Rolands Gulbis,

AS "Latvijas balzams"

Chairman of the Board