JSC  "Latvijas  balzams"  has closed the tender for purchasing land for

construction  site of a distillery. After a careful evaluation the land

offered by company "Rīgas ūdens" was selected, and negotiations will be

started  with  the  landowner.  Altogether there were 42 bidders in the

tender.  The  land  selected  has  the  advantage of a location near to

public  utilities network, which will facilitate the building of sewage

treatment plant and the resolving the waste disposal issue.

Company  intends  to buy not less than 4 ha of industrial land. Project

cost  estimate  will  be  finalised after the land is purchased and the

design starts.

It  is  expected that the project will be implemented during 2003, with

the  objective  to  assure  stability  in deliveries of the key input -

spirit.

This  year "Latvijas balzams" will exceed the planned investment volume

(LVL  5.137  millilon),  due  to  the  previously  reported increase of

storage  facility  investment  value  from  LVL 1.57 million to LVL 2.5

million.

"Latvijas  balzams"  has  reported  to  Ministry of Finance the Company

investment intentions between years 2003 and 2005 at total value of LVL

11.3 million.