Riga  Stock  Exchange and Latvian Central Depository consolidated group

turnover  in  2002  amounted  to  LVL  1,446,439 (EUR 2,371,211). Share

capital  at  the  end  of the year was LVL 893,364 (EUR 1,464,533). The

Group  closed  the  year with a LVL 259,020 (EUR 424,623) profit before

taxes.  The  past year was the first when the RSE and the LCD worked as

for-profit  companies. We can note with satisfaction that the financial

performance  has  been  a  success.  The  RSE profit before tax was LVL

192,638  (EUR  315,800),  which  is  all-times  best performance in the

company  history, and resulted in equity increase by 30%. Revenues from

privatisation services traditionally generated the largest share of all

revenues.  LCD, despite of the fact that the fees for key services were

reduced  by  20%,  and  material  investments  were  made in developing

pension  account  custody  system,  the  LCD closed the year with a LVL

34,835 (EUR 57,106) profit before taxes.



It  is no doubt that radical changes in the RSE and the LCD shareholder

structure  was  the  central  event.  As  a result, HEX Group (Finland)

became  the  Riga  Stock Exchange major shareholder (92.98%), while the

RSE acquired 100% of the Latvian Central Depository shares.



 "Both  steps  are going to have an effect on the future of the Latvian

capital  market,  and  are  of  great  importance  for  both companies.

Integration  with  HEX is one of the key strategic objectives for 2003,

allowing  to  set  up, in long-term, a seamlessly functioning, safe and

internationally  recognised  marketplace. At the same time, the RSE and

the  LCD  integration  will  allow  cost  savings  and provide one-stop

services  to the clients. In the future the Group expects to be able to

offer  to  its clients new, more efficient and, what is most important,

less  expensive  services,"  said  Guntars Kokorevics, President of the

Riga Stock Exchange.

In  order  to  enable  the  Latvian investors to keep the securities in

their  accounts  in Latvia, the LCD established corresponding relations

with  Euroclear.  Non-competitive  government  bond  primary  placement

auctions  on  the  LCD  system,  started  late  last  year,  make these

securities  accessible  to  a  broader investor base: apart from banks,

brokerage houses may participate as well - either in own or on clients'

account. Co-operation with State Social Insurance Agency in the area of

operating  state  funded  pension  system  participants'  accounts will

continue  to be of significance this year as well.  The accomplishments

of  2002 allow us to face the years to come with optimism. A successful

Group  budget has been prepared, aimed at profit making and seeking for

new  technological  solutions  for  enhancing  the Group operations and

making them more efficient. HEX Group, the new shareholders, is willing

to  develop the domestic capital market and is prepared to invest cash,

know-how  in infrastructure development and in human resource training.

"Our  priorities for 2003 are to consolidate the RSE and LCD as a Group

and  to  integrate  into the HEX Group, to enhance the trading activity

via  attracting  new  high quality issuers; and to develop new services

and to market them more actively", stated Guntars Kokorevics.