According  to  the  Letter  of  Intent dated 5 February 2004, today, 17

February 2004, JSC Latvian Shipping Company (LSC) signed a Shipbuilding

Contract for four handy-max product tankers. The Contract was signed by

Crown  Navigation  Inc.  (a wholly owned subsidiary of LSC) and Hyundai

Mipo Dockyard Co. Ltd. in Korea.

As reported earlier, in order to ensure the implementation of the Fleet

Renewal Programme provided for in LSC Group's Strategic Plan 2003-2010,

a  resolution on the building of four handy-max tankers has been passed

by LSC Board of Directors. LSC Tanker Fleet is reported to generate the

major part of the Group's Net Voyage Result.

The 37-deadweight-ton ice-classed tankers are scheduled for delivery in

2007.

Pursuant  to  the  terms of the Contract the total contract price shall

remain  confidential  and  shall only be disclosed by mutual consent of

the parties.

LSC  Supervisory  Council's  consent to building four handy-max tankers

was given on 13 February 2004.



Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120, 9287169

Fax: +371 7820239

E-mail : ozolina@lsc.riga