JSC  Latvian  Shipping  Company  (LASC)) today announced its financial

results  for  the first quarter of 2003. LSCO Group's profit before tax

for the three months ended March 31, 2003 reached $ 13.8 million, which

is an increase of $ 10.7 million compared with the respective period in

2002.  The  Company reported vessel operating profit of $ 16.5 million,

which  is  an increase of $ 11.2 million compared with the prior year's

first quarter.

LASCO Group's Tanker Department earned record profit of $ 12.6 million.

That   was  by  $  9.4  million  higher  than  last  year.  Substantial

improvement  was  also  reported  by  the  rest  of  the  Group's fleet

segments:  first  quarter vessel operating profit of the reefer and dry

cargo  fleet amounted to $ 3 million, which is twice as much as for the

same  three  months  in 2002. In the first quarter of 2003 LASCO's both

LPG  carriers - Vidzeme and Kurzeme - earned $ 0.3 million more than in

the prior year's quarter. Their profit for the three months ended March

31, 2003 amounted to $ 0.9 million.

Various  factors made for the especially positive first quarter results

of  the  LASCO  Group:  relatively  high  freight  rates,  considerably

increased  demand  for  ice-class  tankers  and  reefers,  explained by

extremely  complicated  ice  navigation,  as well as structural changes

enabling  to  decrease  the  Company's administration expenses by $ 0.4

million.  At  the same time movements in the exchange rate of US dollar

against Latvian lat had a negative impact on LSC Group's performance in

the first quarter of 2003.

Slide  down of freight rates was registered in late April. Upon the end

of  ice  navigation and settlement of the Iraq conflict further drop in

the  rates  is  expected.  Another  factor, which may materially affect

LASCO  results for 2003, is the restriction by the EU on the employment

of  single  hull vessels for dirty oil product transportation, expected

to  be  imposed  in  June  2003.  As reported, the average age of LASCO

Group's most profitable sector - tanker fleet - is 18 years.

Similar to the previous years, nine reefers will be laid-up in May till

the  beginning  of  high  season  in early winter, since the employment

thereof  during  the  low  season in summer and autumn is unprofitable.

Dry-docking  of a number of vessels planned for early 2003 was also put

off  till  summer,  thus  making maximum possible use of the favourable

market conditions.

As  of  March  31, 2003 LASCO Group's fleet consisted of 52 vessels: 36

product  tankers, 13 reefer vessels, 1 Ro-Ro/general cargo vessel and 2

LPG carriers.

JSC  Latvian  Shipping Company Management Board and Supervisory Council

plans  to  approve  LASCO  Group's Strategic Plan and present it at LSC

General Shareholders Meeting to convene on May 30, 2003.

Marita Ozolina-Tumanovska

LSC PR Departament

Phone: 371 7020120, 371 9 287169

E-mail: ozolina@lsc.riga.lv