Pursuant to terms and conditions of share purchase agreement signed on

January  19,  1996  between  Lavinia Corporation Ltd. and Privatisation

agency,  and  based on Item 10 of 2nd closed share issue Rules, Lavinia

Corporation Ltd has subscribed and paid in all 5,041, 080 common voting

shares  of  JSC  "Rīgas  Transporta flote" at total value of LVL 5,041,

080, by investing vessel "FRIO"PUSAN"" in the Company share capital.

According  to  Company privatisation rules, Lavinia Corporation Ltd., a

strategic  investor  in  "Rīgas  Transporta  flote",  had an investment

commitment  of  LVL  6 million. On July 5, 1996 Lavinia Corporation Ltd

already  made  an  investment of vessel "YORKSAND" LVL 1,271,900 worth.

Now,  by investing the second vessel, the total amount invested adds up

to  LVL  6,312,980.  Thus,  Lavinia  Corporation Ltd. has fulfilled its

investment commitments.

According to 2nd closed share issue Rules, the rest of the shareholders

had  to  subscribe to the 2,211,959 closed issue by March 1, 2002. None

of the shareholders exercised their rights. Consequently, according the

issue Rules, the issue is valid to the extent it has been subscribed to

and  paid for, namely, 5,041,080 common voting shares subscribed to and

paid  for  by  Lavinia Corporation Ltd. Thus, Company share capital has

increased  by  LVL  5,041,080  - from LVL 18,271,900 to LVL 23,312,980.

Since  the  Rules  of the issue envisaged an increase of capital by LVL

7,253,039,  as opposed to effective increase by LVL 5,041,080, the next

shareholder  meeting  has  to make respective amendments to the Company

Charter.